How to Get a Great Loan for Your Car
Is it time to buy a new car?
Maybe your family has outgrown your current car, or maybe you can’t justify the cost of repairs anymore. Whatever the case, if you’re like most Americans, you’ll probably need a car loan before you can drive your new car off the lot.
Some car loans are better than others, so you’ll want to make sure that you get a great deal. Here’s what you can do to get the best loan for your new car.
Know Your Credit Score
First, do you know your credit score? If not, now would be a great time to look it up. Your loan terms will have a lot to do with your credit score. Your score can even impact your chances of getting a loan in the first place. It’s best to know your credit score upfront to avoid being taken by surprise.
If you don’t have the best credit score and you have some time before you’ll need your loan, you can take some steps to improve your score. For instance, you could do the following:
- Pay down existing debts.
- Make all payments on time.
- Spread out your payments by making some installments early.
- Use different kinds of credit.
Research Cars and Prices
Before you apply for a loan, you’ll need to know how much money you’ll need, and of course, to know how much money you’ll need, you’ll have to know what kind of car you plan to buy.
Start by asking yourself what you need most from your next car. Do you need a lot of storage space? All-wheel drive? Research cars that fit your requirements, and get an idea of how much you can expect to pay for one of those cars.
Find the Right Source
Next, you’ll need to compare your loan options. Not all car loans are the same, so don’t settle for so-so terms when you could get something better. Many car dealerships offer in-house financing, but it’s almost always best to avoid that choice. In-house financing usually comes with high interest rates.
Instead, look for small banks and credit unions. These options come with better terms, and they’ll often approve loan applications that megabanks would reject.
Find Your Loan Through Bundlefi
The key to finding a good car loan is shopping around. You have options, so you might as well find the best one. That said, the shopping process can get overwhelming. Bundlefi is here to make it easier. With Bundlefi, you can compare your loan options in one place. We only list community banks and credit unions on our site, so you won’t get stuck with an impersonal megabank loan. Take a look at Bundlefi today to check out your loan options.