Are you in need of an auto loan? Perhaps it’s time to get rid of that old clunker and upgrade to a newer and fancier ride? Maybe your car just went kaput? Finding the best low-interest auto loan is essential and it can save you thousands of dollars over the course of the loan. Below are some things to consider when you are searching for an auto loan either at New Roads Auto Loans or elsewhere.
Credit Score
Your credit score is a huge factor in determining what kind of auto loan you can get. It factors into how long the process will take. If your credit score is good, say at 700 or above you should be able to get a great rate. And you’ll probably get it fairly quickly. Taking the proper steps beforehand and maintaining your credit score is important. Pay your bills on time and don’t rack up more than 40 percent of your balances on any cards you have open
Get Organized
Being organized is another great thing you can do when getting a low-interest auto loan. All the documents and paperwork you need should be kept neatly in a folder. These documents include proof of income, pay stubs, proof of address, utility bills, and bank statements.
References
Many auto loan companies will ask you for references during this process. These references might include friends, family, or your boss. Make sure the list has at least three and tell each of the people that they may be getting a call about the loan.
Tell the Truth
Although this may seem obvious you wouldn’t believe how many people have been turned down for a low-interest auto loan because they provided false information. If you are found not to be forthright then you most likely won’t get the loan and your credit score can subsequently be effected in a negative way.
Offers
After you’ve gone through the application process you can expect to get several loan offers. These loans can be in the form of secured and unsecured loans. A secured loan is where collateral is needed. This loan tends to have a better rate since you’ve put up something of value to ensure payment. An unsecured loan doesn’t take collateral and will typically come with a higher rate. These loans have less paperwork. The higher your down payment the lower your rate will be too and it will determine the amount of your loan.
Up to You
Whether or not you accept the auto loan, in the end, is entirely up to you. You’ll want to consider the size and length of the loan and calculate when you can pay it off while ensuring you won’t be stretched to thin to make all your payments in a timely manner.
