If you want to finance a vehicle purchase, you’ll need to seek an auto loan in Owings Mills. Following these four tips can help lead to success!
Have a Good Credit Score
Perhaps the best way to ensure you get approved for a loan is to start with a good credit score. This is a key factor that lenders look at when deciding who to lend money to, as well as what the interest rate will be. If your credit score isn’t great, building it back up before looking to buy a car can be helpful. However, if you can’t wait, there is something else you can do.
Use a Co-Signer
If you have a friend or relative with a good credit score willing to be a co-signer, this can go a long way to helping you secure a loan. An added bonus is that this may also result in a lower interest rate.
Show Proof of Long-Term Income
A lender’s focus is all about risk, which is why they need to know that you will have a little-to-no issue making your payments. If you have been at the same job for a while – or have had uninterrupted income – that you can demonstrate through paystubs, this can be very convincing.
Put Down a Sizable Amount
Another way to show that you intend to pay off your loan is with a good down payment. Putting up 10-20 percent of the purchase price is a good idea. The plus side is that the more you put up initially, the less you will need to borrow, which could shrink your monthly payments.
If you’re ready to apply for a loan, Heritage Chrysler Dodge Jeep® RAM Owings Mills lets you start the process right now. Just fill out our online application to get pre-approved! We will then be in contact to discuss next steps.