5 Things To Check Before Taking Your First Car Loan

Just like your first home is very special so is the experience of buying your first car. Whether it is used or new – the memory will always stay with you. Car loans are the best way to buy your first car. Once you manage to get a loan, purchasing your dream car will become a reality. Taking a lease instead of buying it first is also a good option for those who move around a lot. In fact, several companies offer novated lease where the employer takes up the lease of the employee via a finance company. If, however, you are more inclined towards buying your car and maybe getting a personal loan from Promise, here are a few tips and tricks for first-time buyers.

Credit Score Plays An Important Role

Determining your credit score before taking a car loan should be your first step towards buying your first car. Your credit score is the sole factor to determine what kind of loan you will be getting, what will be the interest percentage. All these keeps changing depending on your financier. You can either go through a bank or a finance company. Depending on all that the interest rate will differ as well. In case, you do not need your credit score yet, no need to panic, get your full report at Annual Credit Report.

Get Your Loan Pre-Approved Before Looking For A Car

So, now that you know the amount of money you can get as a loan based on your credit card score, it is time to get your loan pre-approved. It is a good practice to walk into a showroom only after doing this. When you have the papers that your loan is already pre-approved by the bank or some lending company, it puts you in a good position and you can even negotiate a lot of things based on that. 

Apply For Your Loan Within A 2-Weeks Period

The moment lenders and the bank authorities start checking your credit history, your credit score will fall. The reason behind this is certain information that are usually kept under the wraps. For those shopping for car loans the Fico scoring period is just 2 weeks. Within these 2 weeks all inquiries made regarding your credit score will be considered as one. Which means your credit score won’t go down after all.

Calculate All Expenses Before Buying

You are almost set now. However, it is imperative to calculate all kinds of expenses before taking the final decision and buying the car. When you know the final cost of the car and the amount of money you can get as loan, you can easily calculate things like, what will be the EMI be like, if there is a down payment how are you going to pay that, and finally how long will be the loan term.

Once you know the best practices before taking your first car loan, shop around a bit. You might get better interest rates elsewhere. Never opt for the first option you have. Write down the procedure and the calculations as you understand it. It will help you a lot while you buy the car.

%d bloggers like this: