If you are ready to buy a new car in Melrose Park, you might need a loan to cover the cost of the vehicle. Auto loans are very common, but you want to make sure that you get the best rates possible. Here are some tips:
Know and Understand Your Credit Score
One of the most important things that you must do before applying for a loan to buy a car is to know and understand your credit score. A lender will certainly check this information. There are three major credit monitoring companies, so it’s best if you get your score from all three of them. Check to make sure that all of the information on your report is correct, and it will give you a good idea of where you stand.
Shop Around for a Good Deal
Another thing that you should do is to shop around for the best deals. Yes, you can get financing right from a dealership as long as your credit is decent, but that might not always give you the best rates. Think outside the box a bit and look for other loan options, such as credit unions. You can usually get better rates. It is said that about 80 percent of people get their loans right from the dealership, but the same research shows that they pay more money.
Choose Short Loans, As Long As You Can Afford it
Finally, in most cases, it is best to choose the shortest loan that you can afford. Why? Because of interest. The longer you pay on the loan, the more interest you will pay on the loan. So, you will save money if you choose a 48-month loan instead of a 72-month loan.
Are you shopping for auto loans? Contact Leyden Credit Union located near Melrose Park.
