How to Get a Car Loan Pre-Qualification
Know the types of car loan products you qualify for without hurting your credit score.
What is that one single thing that is keeping you from finally buying the car of your dreams? Is your savings still too short to lock down the car you want? If that’s an issue, it might be time to consider a car loan and join the majority of Americans who finance their cars.
If you are planning to apply for a car loan to fund the purchase, you should know by now that your credit score can make or break your chances of getting an auto loan with a reasonable interest rate. You have prime (or excellent) credit and a higher chance of getting low-interest rates if your score is between 661 and 780. A score falling between 501 and 600 makes you a borrower with subprime credit who is entitled to loans with higher rates.
“Your credit score can make or break your chances of getting an auto loan with a reasonable interest rate.”
Since the start of 2018, a lot of car buyers have started avoiding auto showrooms. The reason is obvious: people with subprime credits are getting more realistic in thinking that getting a car loan at this point will likely be a financial mistake.
Moreover, a rising number of Americans are using online portals to know how much they could possibly pay for as payments and their budget guidelines, if they take a car loan. You must be aware that even if getting a pre-approval for an auto loan is ideal, as it will save you time and effort, but getting one may eventually negatively impact your credit score.
Check your credit score for free
Thanks to the advent of the internet and to a few helpful websites like Credit.com, it is now possible for you to determine your current credit score for free and without hurting your credit standing. Don’t rely on banks to do the inquiry for you.
There are good reasons why it is advisable for you to get your credit score now. First, you can instantly determine if there are possible discrepancies or errors on how the credit rating system is scoring you. If you have doubts about your score, you can immediately contact a credit reporting agency to file a possible correction.
“It is now possible for you to determine your current credit score for free and without possibly hurting your credit standing.”
Secondly, you will determine your chances of getting a car loan by having an idea if you are currently categorized as a good or bad credit borrower. This way, you can easily and effectively manage your expectations when choosing a car to buy and applying for an applicable car loan.
Thirdly, you can be more aware of how you can manage and even raise your credit score. You know the drill. To earn positive scores, make several manageable credits. Avoid making late payments on your loans and other dues. You can possibly manipulate your credit score by taking credit activities that you know could help bolster your rating. Always pay your bills on time to show credit worthiness.
Most American car buyers now opt to use what is becoming a popular service—pre-qualification for a car loan. It will give you an idea as to how much a car loan could cost you depending on your current financial data. But because there will be no hard inquiry to be performed, you can rest assured that the pre-qualification will not affect your credit score, unlike when you go for a pre-approval.
“Say hello to a hassle-free way of finding car loans that are perfect for you.”
To be pre-qualified for a car loan you could apply for, visit an online car selling site like Carzing.com. On the home page, click the ‘Get Pre-Qualified’ button and fill in the specified fields in an online form with correct information. Some of the information you would be asked to provide pertains to your regular income and length of employment (if you are employed).
In just a matter of seconds, you could get pre-qualification for a loan that you could possibly utilise to purchase your dream car. You can print that out and bring to your preferred dealership to initiate the purchasing process. Say hello to a hassle-free way of finding car loans that are perfect for you.