How To Get a 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 Freeway Honda. For more information about how to get a car loan around Tuscaloosa, 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 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 Freeway Honda!
Now that you know more about how to get a car loan, you can stop by Freeway 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!
More from Freeway Honda
While all Honda vehicles come with several advanced safety features, defensive driving is the best way to prevent accidents. Teen Drivers Inexperience is a leading cause of crashes involving teens. That’s why Honda has teamed up with the National Safety Council to offer parents valuable resources they can use to help teach their teens how…
Did you know that this week is National Teen Driver Safety Week? October 17-23, 2021. We are using this week as a reminder to talk to our teenage children about the importance of staying safe behind the wheel. While these are important conversations to have every week, this week we are being sure…
Get A High Score With The New 2022 Honda Civic Si EvoTrack Experience Check out Honda’s newest mobile and desktop video game! Go to evotrack.honda.com from your mobile phone or on your desktop computer to get behind the wheel of a New Honda and earn a high score. Easily challenge your friends and family…