Helpful Tips for Getting Auto Credit
Where to get the auto credit
Getting a auto credit is quite a simple procedure. There are of course some terms and conditions that need to be fulfilled before you would be granted auto credit. All lending institutions including traditional banks, credit unions, auto dealerships and online loan sites will offer you auto credit. Before you take auto credit, its important that research and shop the best deals and rates that may be available to you.
Those with bad credit score can also get auto credit loan
It may come as a surprise to you, but if you have a bad credit score, you can still get auto credit. Depending on the credit score and other factors, you can get auto credit. There are a number of online services that can give you all the information and can even pre approve your auto credit loan easily. Most credit lending institutions including credit unions would extend bad auto credit loans too. You can also trade in your old vehicle even if you have an existing loan on it.
The FICO score
More than 90% of banks, car dealerships and credit unions across the country use the FICO score for ascertaining your credit. If your FICO credit score were more than 720, you would get a favorable rate of interest, which would be around 7-9%. If you excellent credit rating between 800-850, you would get an interest rate of 5.75% – 6.5%. But if you have a credit rating below 600, then you could be charged between 10-20% as a rate of interest for your auto credit.
Factors that affect your interest rate
Other factors that affect the rate of interest include the vehicle model and age, the amount of down payment that you are likely to make, your income & employment status and trade in value of the previous auto status. Most car dealerships won’t finance auto credit if you are buying from a private party. There are specialized auto credit lending institutions for those that have bad credit too.
Getting pre-approval online
Most online auto credit sites provide this service free. They have their tie-ups with car dealerships that you can approach for getting the auto credit loan. Apply through a secure gateway and fill an online questionnaire. Within 24-48 hours, a person, who can help you to get pre approved for an auto credit loan, would contact you. Many of these sites also have online loan calculators. These can give you an estimate of the auto credit loan that you may be approved for. Please remember that they provide only an estimate. You may be approved for a greater or a lower amount than the loan calculator.
You can also approach your own bank (where you have a checking account or have been financed for a previous loan or mortgage) for getting an auto credit loan. If you have had a bankruptcy or even vehicle repossession, you may be eligible for an auto credit loan. If you have bad credit, then you can pay the auto credit loan on time and improve your credit score.
