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Tips for Successful Loan Application

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Check your credit report

First thing that you should look into when applying for any type of loan is your own credit rating. As a general rule, good credit score can help you easily qualify for a loan and a nice deal, while bad credit can make things difficult and expensive, if not impossible. Knowing your credit score beforehand can help you have an idea where you stand, so that you won’t just easily give in to what the dealer offers.

Do your homework

Car loans can be very complicated. They come in different terms and it’s advisable that you should know your way around before actually meeting up with the dealer. Remember that they have been in the business for years, and they always know the right words to say. Performing your own research can help you avoid traps hidden in their flowery words and marketing hypes.

Research about the vehicle you have in mind

If you already have a specific vehicle in mind, make sure you read about what other people tell about it. Make sure it can perform well to your expectations. If the dealership you came to does not offer the car you want but rather offers you another one, don’t easily jump into it, instead, find another dealer which offers the car you want at the best possible deal.

Do not grab the first deal

Sometimes thrill and excitement can drive us out of our senses. Don’t make it too obvious that you can’t wait to drive your first car. Rather, act unconvinced that the deal offered to you is good enough, and try to make it look like you have all the time to visit the next dealer. Ask questions, be ready to bargain, and soon you’ll slowly gain control.

Read the small print

You can’t expect the lender to divulge everything during your conversation. It is still your responsibility to read the contract’s terms and conditions very carefully, and clarify jargons that you might find confusing. Never sign anything until all your doubts and questions are answered.

Be careful of riders

Most of the time, lenders make more money by including add-ons in the package. Make sure they are not required to be included in the loan, and if you really need some, try getting them outside of the term for cheaper costs.

Be wary of specials

You might be easily tricked by no or low down payments or low monthly payment “promos”, but in reality, the dealer can manipulate the term to make it look cheaper where it is actually more expensive over time. Make sure you don’t rely on those aspects alone but rather calculate for the total payable amount of the loan to ensure that you are actually getting the best bargain.

Shop around 

Patience is truly a virtue, and you can’t expect to find the perfect deal on the first door you opened. It takes a lot of time, effort, and careful study. It pays to perform online research first, and then collect offers from the best dealers and take time to compare them against each other.

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