7 Tips for Getting a Car Loan Approved
Are you tired of dealing with banks and lenders who just can’t get it right? As a standing policy, they seem to turn away loan applications on a daily basis. If you don’t have a great credit history, then there’s a chance you’ll be stuck at home without wheels. But don’t lose all hope just yet. There are lenders who will not only approve your loan application but will also do so in a short amount of time. In fact, you could have keys to your vehicle within the hour if you know where to look and how to approach them.
Here are seven practical tips that can help you secure car financing:
Get a copy of your credit report
Getting a copy of your credit report is very important, no matter how good or bad it may be. Why? So you know who to approach and where to look for help. Before you can even begin the process, you need to know exactly what lenders see when they look at your financial history. It’s also very handy that you know who to contact regarding the status of your application. If you know which lenders are not showing any signs of approval, then you can always approach another lender with a copy of your credit report in hand.
Don’t apply for lots of loans at the same time
The chances of getting approved are higher if you apply for one loan at a time. Don’t make the mistake of applying for four or five loans at once, thinking that this will up your chances of approval somewhere along the line. By applying for lots of different loans, you might end up negatively impacting your credit score. Applying for more than one loan means you’re also more likely to miss a payment. Keep in mind that missed payments stay on your credit report for at least two years.
Stay away from payday loans
Are you struggling to secure financing? Then it might be tempting to get something like a payday loan to hold you over until your next paycheck. Before you know it, however, you’ll end up paying more than double the loan amount, due to interest and fees. In fact, some lenders might be hesitant to approve your loan application because of payday loans or other cash advances on your credit report. If you need a loan fast, then stick with an instalment type of financing.
Assess all your lender options
Don’t settle for the first offer you receive. In fact, get an agreement in writing before you decide to go ahead with a loan. Ask all the right questions and make sure it’s something you can afford. You’ll also need this information when applying for a car loan from other lenders.
In addition to assessing your options, speak with your family and friends about their experiences with car loans. As much as possible, find out everything you can about the lender before signing on the dotted line. If your family and friends had good experiences in getting a loan from them, then chances are they’ll be more than happy to assist you.
Decide what type of loan you’re after
There are many different types of loans out there, from secured car loans to personal loans, as well as a whole range of commercial loan options like chattel mortgages, novated leases and hire purchase arrangements. If you’re looking for a car to use for business purposes, we recommend you check out Driva’s commercial car loans.