Auto Loan Factory

Tips For Getting The Right Auto Loan
By Chris Robbins

Your first step to getting the auto loan you need is to collect
information. In order to make an informed comparison of the
terms and interest rates that will be offered to you, you’ll
need to know what is typically offered to those with your
specific credit rating. Thus, you need to get copies of your
credit report from all three of the major credit reporting
agencies -- Equifax, Trans Union and Experian.

Once you have your credit reports, review them carefully for
errors. If you find errors, formally challenge them right
immediately. If you have outstanding debts, pay as much of them
down as possible before you seek an auto loan. If you have a
large number of credit accounts open, consider paying off and
closing the ones that you don’t use frequently. The potential
to take on a great deal of credit debt quickly, on top of an
auto loan, can spook some creditors and negatively impact rates
and terms offered.

It’s a good idea to go into dealerships prepared. In addition
to being familiar with your credit score, you should know what
types of loan rates you are generally eligible for. This can be
accomplished by using one of the several online sources that
offer free interest rate quotes. Ask questions if a dealer
presents to with an offer in which the rates differ
significantly. Proceed with caution, as it could be a sign of a
dishonest dealer.

If at all possible, take your time in shopping for your auto
loan. Compare several offers, and make sure you understand
everything. Ask how much the loan will cost you in total, what
the annual interest rates are, how long it will take to pay it
off, and how much exactly each available repayment schedule
will cost in the end, including interest. Find out if there
will be any penalties for paying the loan off early. Double
check all fees involved in the loan transaction.

What you are looking for is simple -- auto loans at a low rate
with a fair and comfortable repayment schedule, and no nasty
surprises in the small print. Don’t let desire or pressure push
you into anything less than your credit history and financial
circumstances deserve.

If you have a less than perfect credit history, you still do
not have to accept predatory loans. Slow down. Take steps to
repair your credit as much as possible. Part of that, beyond
the obvious means of paying down as much debt as possible and
closing unnecessary credit accounts, is to make yourself look
good, dependable. Live at the same address and keep the same
job for at least six months before applying for your loan. Do
not apply for any nonessential credit, and avoid having your
credit report pulled by potential landlords, employers, etc.,
if at all possible. All those requests, which will be seen by
the credit reporting agencies, can look as though you are
repeatedly being denied credit. You want to avoid that.

Do not allow yourself to be pushed quickly into a last chance,
bad credit type of loan. Sure, you may have made credit
mistakes in the past, but that doesn’t mean you have to accept
just any terms and rates. With diligence and time, especially
if you keep working on repairing your credit, you will find
terms and rates that are reasonable for your financial
situation.

Planning and information can make a real difference in the
quality of auto loan you are offered. If you do the research,
make an informed decision about what you are willing to accept
and are prepared to stand by it, even if it takes a little
longer, the odds are that you’ll find the right auto loan for
you.

About the Author: http://www.directlendingsolutions.com is a
growing consumer credit resource designed to help people locate
the financing, identity theft, or debt consolidation information
they need.

Source: http://www.isnare.com