If you are thinking about applying for an auto loan, there are a few steps you should take first. You want to go into the auto lender well-prepared. This will increase your chances of being approved and help you to get a better rate. Before you head out to get an auto loan, make sure you do the following:
Check your credit
You can check your credit report and credit score online. There are three main credit reporting agencies you want to focus on and each one will allow you to obtain your credit report once a year for free of charge. Look for any discrepancies and dispute anything negative that shouldn't be on your report. Getting negative marks off your report will raise your score and put you in a better position for getting an auto loan.
If you see you are behind in payments, or owe a debt that slipped your mind, you want to make arrangements to pay on those. You should also make sure your personal information such as past addresses and aliases is correct.
It can take a while to have something corrected on your credit report. For this reason, you should write down the information for the item you are disputing and take the information with you when you meet with the lender.
Gather all necessary paperwork
The auto lender will want to see paperwork such as proof of employment, a recent bank statement, proof of residency, documentation on the vehicle you wish to purchase and proof of insurance. Make sure you have this information with you when you go to see the lender. It will save you time and allow you to have an answer quickly regarding the approval of your loan.
Bring your spouse with you
Rather than needing to set up another appointment if you aren't sure how your spouse is going to feel about the terms of the loan, set the appointment for a tie when the two of you can go to the auto financing company together.
Plan for a long visit
When you go in for auto financing, you want to plan on staying until you can come up with terms everyone is happy with. This can take some time and require different numbers and terms to be ran through a few times. It's best if you plan on spending at least a few hours in the office. Bring a drink with you, make sure you have no other plans scheduled near your appointment time and you may even want to bring a snack.