Tips for Financing a Used Car

1). Know Your Credit Score

Before you do anything else, we recommend checking your credit score.

A credit score is a number on a scale from 300 to 850. This number lets loan providers know how likely you are to pay back a loan on time. This number is determined by several financial factors, such as the amount of unpaid debt, your history of bill payment, and how long you've had financial accounts open for.

Credit Score Range:

• Bad: 300 to 629
• Fair: 630 to 689
• Good: 690 to 719
• Excellent: 720 to 850

Knowing your credit score prior to starting the financing process will help you better understand the type of loan you'll likely receive.

It also gives you the chance to improve your credit score, if need be, prior to financing a vehicle.

2). Consider Your Down Payment

A down payment is the money you pay upfront when you decide to finance a car. This amount goes toward the total value of the car. As a result, the larger the down payment, the less you must pay each month.

Financing experts recommend putting no less than a 10 percent down payment toward the purchase of a used car.

Of course, you're always welcome to put more toward the down payment. As mentioned, higher down payments have their benefits, such as:

• Reduced monthly payments
• Shorter loan term
• Potential reduction in interest rate

Want to learn more about how down payment adjusts your custom financing plan? Simply contact our team!

3). Get Pre-Approved for Financing

Getting pre-approved for a used car loan before visiting the dealership is another quick and easy used car financing tip. Doing so offers several benefits, such as:

• Learning about the types of loans you qualify for
• Understanding the interest rate you can expect from a loan
• Shopping around for the best loan possible

You can get pre-approved for a loan today by filling out our secure application. Provide us with your basic information, and our team of experts will use their relationship with local banks and lenders to find you a used car loan with competitive, favorable terms.