Those of us in search of a car want to get approved for a car loan. Perhaps worries about getting approved actually keep us from getting behind the wheel. That’s the equivalent of lost freedom at work or play. That’s also lost vacations and road trips…
Don’t agree to stay homebound! That’s unacceptable!
Anyone with an income and a responsible way of life should have the freedom to drive. This freedom starts with getting approved for car financing if one doesn’t have the full purchase price of a new or used car on hand.
What if…?
In order to get approved for a car loan, the buyer’s credit file is accessed by the prospective lender. Most people imagine this process is quite cut and dry. In other words, if the would-be borrower has less than perfect credit, he or she just can’t get approved for the money that will purchase new wheels.
Of course, the borrower’s credit score is an important factor. Credit quality determines the cost of funds borrowed, or the interest rate attached to the term of the car loan. But less than perfect credit need not prevent the borrower from owning a car.
Many lenders know that life happens. And buying a car—and paying off a car loan as agreed—can help even those with a previous bankruptcy to re-establish good credit.
Benefits of a loan broker
The prospective borrower has two basic choices in getting approved for a car loan. He or she can go to a bank or finance company and make an application. This step can make sense if the borrower has an excellent business relationship with the lender and has good or excellent credit.
However, most people don’t have a commercial or significant account relationship with a bank or other financial institution. They may live paycheck to paycheck. In that instance, if the bank receives or otherwise clears these funds, the prospective lender also knows the borrower’s finances very well. The borrower is unlikely to get approved for a new loan in this case.
Engagement of a loan broker can significantly help the borrower to gain access to more car financing choices. The broker, an agent working for the borrower, submits his or her details to a field of potential lenders. These prospective loan bids are then presented to the borrower. Get Approved Motor Finance is an example of a car loan broker.
Car loan choices
Getting approved for a car loan gives the borrower choices. He or she can choose the best car loan terms as a result.
The borrower might not have the stamina to present a car loan application to multiple prospective lenders. That’s a lot of work. Each lender is likely to have questions about the application, and sorting out the needs of each in sequence is likely to take a lot of time.
A car loan broker performs all the “running around” necessary to get an approved car loan for their client.
How to get approved for a car loan
This relatively straightforward process starts with the future car buyer’s request of his or her credit file. Review the file for errors, then write each credit reporting agency about any issues. Upon resolution in a month or so, reach out to a car loan broker to get the best financial deal.
Then, go to the car dealer of choice and BUY a car!
Photos: Kevin Dooley, Eva Rinaldi, Unknown
There are auto loans available for most credit situations these days. Banks and credit unions don’t give high risk or bad credit auto loans, so you have to look towards the licensed dealers. You can also do this by applying online with a reputable company that will match you up with a dealer in your area.