Getting pre-approved for an auto loan is a great way to finance a car, but if you’ve never taken part in this process, you may want to know the steps you should take to get started. The good news is that this is a process that many car buyers take part in on a regular basis, so it’s not hard for you to get in on the action. If you take on these simple steps, you’ll have secured your pre-approved loan in no time.
Step #1: Check Your Credit
It’s no secret that your credit score plays a major role in whether you can be approved for any type of loan, not to mention what your interest rate will be if you are approved. So before you go shopping for a pre-approved auto loan through a bank, credit union, or online financial institution, you want to make sure that your credit is in decent standing. If it’s not, it’s a good idea to take steps to clean up your reports and raise your credit score. Then you can increase your chances of being approved and securing a good low auto loan rate.
Step #2: Shop Around
After you’ve determined that you’re ready to get out there and secure your pre-approved auto loan, it’s time to shop around. Luckily, much of the shopping can be handled right over the Internet through online financial institutions. However, some of the shopping may have to be handled by calling banks and credit unions in your area. No matter the amount of time it takes, it’s a good idea to shop around until you get the amazing deal. This way, you can feel comfortable that you’ve secured the pre-approved loan you absolutely deserve.
Step #3: What Happens Next?
After you’ve found the company you want to secure your pre-approved auto loan with, your next step is to wait for them to send you a blank check to take to an auto dealer. You will have already been given your credit limit (the maximum amount you can write the check out for) so after you’ve received the check, your only job is to go get your brand new car.