Did anyone ever hint you about getting a car loan ‘pre-approval’ before you have gone to your car dealer to select your future purchase? May be not. So this article is meant to mend your ways for better. Keep on reading until you finally get convinced how very useful it may get if you get a pre-approval on your car loan.
Until now you have been playing a rough game: going to your dealer first, selecting your dream car and then rushing to your lender to get a loan. Yes, this apparently does make perfect sense but let’s just talk about pre-approvals first.
Do Some Soul-Searching:
All you have to do is to answer these questions for yourself: How will the things change if, before you walk into the car showroom, you have a clear idea about how much loan you may secure for a vehicle? How will it be more useful to know the amount of loan you can get before you point your finger towards some vehicle, instead of first selecting a vehicle and then struggling to get the required amount of loan approved?
It is obvious! If you know how much loan you may get before making the purchase, it will certainly influence you decision for better. Equipped with the power of ‘pre-approval’, you will be able to decide more confidently what sort of vehicle is best-suited for you. After all it is all about managing one’s finances in the most effective manner possible.
Have a Look at Your Credit Report:
In order to improve your chances of getting the best possible pre-approved loan you seriously need to work on your credit report. You can get your credit report from financing companies. It is basically a document showing your credit-worthiness. Make sure that your credit-report is free of errors before you apply for pre-approval.
Your credit score needs not be very high. A reasonable score would work for many financing sources such as dealerships, banks or financing companies. After all it is not your SAT score and you are not applying to Harvard!
Your Source of Pre-approval:
One query that might have been disturbing you by now is how can you possibly secure the ‘best’ pre-approval? This can only happen through a reasonable credit score (as mentioned earlier) and by finding ways to select the best financing source among many. You can do it either by meeting the financing people in person or by searching for easily-available online sources.
It should be clear here that this ‘financing source’ may include your bank, any credit unions and any online lenders.
Therefore, once you get a written pre-approval permission, you have got the power that many others might not have while selecting your vehicle. Now you may not only buy your car more confidently but also make the best possible purchase, thanks to your ‘pre-approval’.