Most commercial institutions require car loan applicants to have a good credit score totaling at least 660. This score would already increase your chances of qualifying for the best auto loan terms.
Although, this isn’t to say that applicants with a score below 660 cannot finance their car. Dozens of lenders offer loans to high-risk clients. However, you will likely have to face high interest rates, strict collection systems, and overall poor terms.
Don’t rush your auto loan. We suggest boosting your credit score instead. Shoppers will only regret rushing into a high-interest auto loan that spans four to five years. Debtors can improve their credit score by:
Debt consolidation means combining all your existing debt under one loan account. The goal is to remove your debt from accounts with bad terms, then transfer them to a new one with lower rates, flexible term length, and overall better repayment conditions.
Your CUR refers to how much of your credit limit you use. A high CUR suggests that you need to max out your credit limit to sustain daily expenses, while a low CUR indicates you have sufficient cash flow and do not need to borrow money. Try keeping your CUR below 10% to boost your credit score.
The best way to improve your credit score is to pay off your existing debt. Reduce your revolving card dues, work toward paying off various loan accounts, and avoid opening new credit accounts.
Shopping for car auto loans? Any Credit has multiple resources comparing the largest commercial institutions in the country that finance car payments. Check our top picks with the most competitive auto loan rates.
Apart from one’s credit report, most lenders would require car loan applicants to submit the following requirement as well:
Bear in mind that car loans do not give you a free pass to purchase high-end vehicles way outside your budget. Only get what you can afford. In fact, experts suggest that shoppers should only get car loans with monthly payments that do not exceed 10% to 20% of their incomes.
Applying for an auto loan might confuse first-timers. Luckily, Any Credit multiple guides shoppers can reference regarding the best auto loan products on the market. Check out our comprehensive guide to getting car loans!
