TIPS ON GETTING AN AUTO LOAN
When you walk into a dealership and start planning to purchase a new vehicle, one of the most crucial factors that will determine whether you will or will not be able to fulfill your goal and drive home that car or truck of your dreams is your relationship with the financial institutions; maintaining a good credit score is mandatory in order to get approved.
One of the most frequently asked questions regarding financing is regarding the best practices for boosting your relationship with banks. For years, acquiring information on that matter had been comparatively more difficult than it is nowadays. Education is widely available on the internet and the average customer is expected to now be able to do their research and have some knowledge before dealing with the sales team.
Firstly, it is vital to understand that a great percentage of your credit score is based on your history – your relationship with banking institutions and how good of a payer you were in the past. Were you always able to pay the bills in full and on time? How did you deal with issues along the way?
On the other hand, you may ask, what are some of the best practices for building an established credit score and a healthy relationship with the financial world? Getting a car loan is known to be one of the easiest and most effective ways to build or rebuild your financial integrity. High liquidity and easy to resell commodities like vehicles are preferred by banks as it naturally reduces the average risk of the operation.
Here are some of the best practices when choosing to finance a new automobile keeping the initial goal of establishing your financial situation in mind:
1) Stay On Budget And Always Pay The Instalments On Time.
Here on our Titanium Auto Credit blog, we have discussed the importance of getting pre-approved before ever walking into a dealership as it provides you with a better chance of getting the vehicle you want and will help avoid miscalculations and situations where you end up being over budget and failing to make the payments. Whether your payments are bi-weekly or monthly, it is mandatory that no instalments are missed or paid late as it hits your score history. Plan ahead long-term and commit to a vehicle you know you will be able to afford.
2) Avoid Payment Extensions.
Payment extensions are called grace-periods and you should not accept them. They won’t help you build your credit score in the long term. You shouldn’t pay off your entire loan in less than a year either hence it won’t develop your paying history. Focusing on paying off the 30% mark as early as you can is also relevant.
3) Don’t Apply To Multiple Companies At The Same Time. Choose A Company That You Can Trust.
We have discussed the importance of not applying to more than one place at the same time when planning on purchasing a new vehicle. Multiple credit inquiries will not benefit you and are seen as a red-flag in the eyes of the banks. Accordingly, there are many companies in the car industry who are unable to give you the best rate and provide you with the best finance team. Checking reviews online and basing your decision on referrals is always a wise decision. Here at Titanium Auto Credit, we have dedicated and highly skilled professionals who will deal with you from start to finish. We cut out the middle-man in order to provide a more transparent and comfortable process for our customers. We are committed to changing the auto industry and we believe that purchasing a new or previously enjoyed vehicle should be a smooth, simple, and memorable experience in anyone’s life. Talk to us today and see why when you’re here, you’re family.