A pre-approved car loan can make the car buying experience easier. When you have a pre-approved car loan, you know exactly how much you can afford to borrow. Often when you have a pre-approved auto loan, you will also know what the interest rate is before you begin shopping for a car. This allows you to easily estimate your car payments to help you determine how much you can really afford to purchase. The pre-approval process is not difficult, and may be easier than filling out the actual application for a loan.
Some car dealerships will offer no credit check auto loans. These loans are usually based solely on your income, and you may need to prove that you make a certain amount of money each week or each month. Often these loans will have a higher interest rate because the risk is a bit higher than if they were to run a credit check.
This is a good option if you have a poor credit history, or if you are trying to fix past mistakes you have made with your credit. Used car lots are more likely to offer no credit check auto loans than banks.
When a dealership offers a guaranteed auto loan, they are reaching out to people with a poor credit history. This means they are willing to work with nearly everyone to help them to get a car loan. With this type of loan, you may find that the interest rates are higher than you may qualify for through a traditional lender if you have good credit. It is worth checking to see if you qualify for a pre-approved car loan through your bank before going to a dealer that offers guaranteed auto loans.
Another option is to see if you qualify for pre-approved auto loans through your local credit union. Credit unions can offer even lower rates than a bank, and it may be the best option you have when it is time to purchase a car. For this type of loan, you will need to fill out an application, and then take the money with you to the dealership when you sign the final paperwork for the car. This may give you additional negotiating power to get a better deal on your car loan.
A pre-approved auto loan can help reduce the stress that comes from buying a car. It makes it easy to know how much you have to spend once you get to the car dealership. It also removes the stress and embarrassment of not qualifying for a loan once you are ready to purchase the car. A pre-approved auto loan also makes it easy to budget for your new car payment, because you can decide how much you will pay before you are tempted by all of the new cars on the lot. It lets you go into the situation prepared.
When it comes time to purchase a car, pre-approved car loans make it easier to handle the entire process. It is one less thing that you need to negotiate when you buy a car. Before you buy a car, you need to make sure that you have enough money in your budget each month to cover the new car payment. Pre-approved car loans let you go over the numbers on your own and make sure that you know what you can afford before you decide which car to buy.