New Car Loans: Golden Rules for Fast Approvals

Americans are simply crazy about buying new cars, but not everyone has the financial ability to spend $40,000 in cash at the dealer’s desk. This has resulted in the rise of web-based companies offering new car loans. Admittedly, searching for an auto loan company isn’t as exciting as walking into a car showroom and spending cash. However, with the advent of internet-based lenders, getting your application approved can be quick and easy if you follow these golden rules. Keep reading this article to learn more.

Find lenders online, not ordinary dealers

This is the general rule of thumb when it comes to applying for low-rate auto loans. Never contact a dealer first, as they will trick you into making a deal that will be costly over the life of the loan. This may seem depressing, but dealers are always interested in getting the most out of a loan. First, get pre-approved before contacting a car dealer.

Online lenders, on the other hand, are interested in approving your loan on flexible terms. This is because they have a wide network of reputable lenders and dealers to help you get quick approvals without creating a dent in your wallet.

What is your credit status?

Before you apply, it is imperative that you review your credit report. There may be errors in the report, such as a canceled debt recorded as unpaid. Again, there may be an item in the collections that you have nothing to do with. Correct these mistakes promptly, or you will end up paying high interest rates on the loan you have applied for.

On the other hand, if you find that the report has all the correct entries and your credit situation is pretty bad, don’t panic. Your credit score can be easily improved if you follow a few basic rules. Start by paying off any debt you may have. There are also other ways to improve your score. If you have an outstanding credit card statement, pay off the debt immediately. Again, you can start making regular monthly payments when it comes to your utility bills.

These are some of the simple but easy rules to follow. These little things will not only improve your credit standing, but also get your application pre-approved at attractive rates.

Avoid conditional financing from unscrupulous dealers

When opting for new auto loans, never fall into the trap of conditional financing from unscrupulous dealers. In this situation, the car dealer says that a customer can take the vehicle home and the loan will take over. However, in reality, the loan still exists! Within a few weeks of buying the car, the dealer will call you a good day and tell you that your financing has some problems and you must pay a higher interest rate or the dealer will forfeit the car. Therefore, be careful with such conditional financing. Instead, opt for web-based lenders that offer car loans at reasonable rates.

I hope this article will be useful for car buyers. Good luck!