How To Get a Car Loan

October 1st, 2021 by
Car Loan

 

Knowing how to get a car loan and what to expect is a crucial step in the vehicle buying process. Learn how to get a car loan and much more with the experts at Carlock Honda. For more information about how to get a car loan around Birmingham Area, feel free to contact us anytime!

Check Your Credit Report

It’s important to check your credit report to ensure that there are no inaccuracies or other issues that could hinder your chances of getting a car loan. You can get a free annual credit report from all of the major credit bureaus including Equifax and Experian. 

If you have a credit score less than 600, you should consider waiting at least six months before applying for your loan. This will give you a chance to build your credit score, and become more appealing to lenders. 

Applying to Multiple Lenders

Applying to multiple lenders could help you get the best interest rate possible, as they likely use different criteria to determine whether to provide you with a loan. Let’s take a look at some of the different lenders you can use when applying for your loan:

  • National Banks
  • Credit Unions
  • Online lenders who specialize in auto loans
  • Financing through the dealer

After applying for a loan with multiple lenders, you might still decide to go with the dealership, however, at least you’ll know you’ve gotten the best rate possible around Bessemer. You should also learn more about the process so you know exactly what to expect.

Getting Pre-Approved

Getting pre-approved allows you to get quotes from multiple lenders, and see which one provides you with the best interest rate. Because each lender uses different criteria to determine interest rates, you will likely get a few very different quotes. To get pre-qualified for a loan, a “soft” pull is required, which will not affect your credit score. However, if you’re looking to get pre-approved, this would require a “hard” pull, and you might see a temporary drop in credit score as a result. 

Learn More About The Financing Process With Carlock Honda!

Now that you know more about how to get a car loan, you can stop by Carlock Honda to learn more about the financing process. Be sure to meet with our finance center if you have any questions, and to get pre-approved near Mountain Brook!

 

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