How to increase your car loan approval chances
- If you're a recent college grad, don't apply for new car loans until you're at your new job at least 6 months
- Apply online at auto loan sites like Capital One Auto Finance or E-LOAN who don't play games with online auto loan rates
- Learn how to repair bad credit yourself, get your credit score to 680 before you apply for new car loans
- Pay down your credit card balances as low auto loan as possible, payoff higher APR cards first before applying for auto loans
- Don't apply for new car loans if you have bad credit, moved in the last 6 months. Lenders hate nomads, they verify addresses & income
- A previous new car finance or home mortgage on your record helps
- Get a stable occupation like engineer, architect, finance, etc. Self employment is very difficult to get approved
- Haggle with creditors to get charge off's, late payments, other black marks off your credit report before auto financing
Credit card companies say it takes 60 days for paying off your credit cards to show up on your credit report, but who wants to wait 2 months before buying a car? One of our visitors filed a request for investigation of her report stating that the balances on these cards were incorrect, and the investigator looked up her correct balances. She checked 2 weeks later and it was changed. Also, by paying off 2 credit cards from 70% max credit level down to 0%, increased her credit score 100 points. That's the difference between paying 6% APR for a new car loan, and 21% for a bad credit auto loan.
Steps to take before you apply for new car loans:
- Get your Credit Score so dealers can't lie to you about your score. Flash it in their face when they lie to you about your score
- Start comparing online auto loan rates to new car dealers, use car loan payment calculators
- Close old credit accounts, they are excess luggage dragging down your credit score, but leave your oldest account open
- Remove erroneous previous addresses and other errors off your credit report before attempting new car financing
- Wait until your score goes up to 680 if applying for lowest rate car loans