If you are in the market for a new car today it is very likely you will not be paying cash for it.
You Probably Need a Loan For Your New Car
In fact, most people need some form of financing arrangement in order to buy a new car. They worry about their credit score and payment history and wonder how this will impact their ability to get financing for a new car.
Your best bet is to secure a blank check auto loan, probably through the internet. This will help you buy whatever you want at a decent rate you can afford. A blank check auto loan sets a maximum loan amount but leaves the details up to you.
If you have bad credit you can still get a good auto loan. It just takes some careful figuring and tenacious searching to find the financing agreement that works for you.
Know Your Credit Score
The first thing you need to do is know your credit score. This is the number banks assign to creditors based on a number of financial factors. Do you have a bank account? Have you been paying your bills on time? Have you had any repossessions or defaults? All of these things impact your credit score. Once you get your credit score you need to get your credit report and start checking for errors. Any credit score below 650 will mean higher interest rates for you when you try to negotiate financing for your new car.
So, getting your complete credit report is often the next step for most people.
Check Credit Report for Errors
With your credit report in hand starts searching it for errors. Review each and every listing. Financing agents do make mistakes, so be certain to review each piece carefully. Make a note of anything which seems out of the ordinary, or just plain wrong. Collect any documentation you have to prove your case and contact the reporting agencies to have them make any necessary corrections. Having the right items on your credit report will improve your credit score making it easier for you to secure a loan at a good rate.
How Much Can You Put Down
You might also consider how much money you are able to put down on your new vehicle. The larger the down payment you make the better the financial deal you will get from the lending agent. Making a larger down payment shows them you have a commitment to paying off the loan because you have already made a large investment in your vehicle. If you have a larger investment in your vehicle you are much more likely to pay it off in full to protect that investment.
You Might Need a Cosigner
Another way to secure a blank check auto loan is to find a cosigner, someone who can share the loan risk. Only rely on this option if you are sure to pay off the loan, however, because your co-signer will be held liable for your debt as well as you.