For most people, a car is going to be one of the most expensive items they are ever going to buy. Few people have the kind of money required to buy a car. Getting a car loan is necessary. There are many lenders who are willing to offer loans for buying cars. If you are looking for a blank check car loan, you must know how it works and how you can get one that will suit your requirements. The few points below will help you know more.
1> A blank check car loan is a pre-approved loan from a bank or other lender which you get before you go to the dealership to choose a car. You have a specific amount of money as loan which you can spend and you even know the rate of interest you will be paying. You can choose any car within that range. This gives you power to choose and also keeps you from over-enthusiastic salespeople trying to up-sell you.
2> Experts will tell you that it is better to have a blank check car loan in hand before you start looking for the car you want to buy. It will prevent you from settling for something more than you can afford and getting rejected for a loan.
3> A blank check car loan will give you power. You can not only choose the car you want without worrying about financing BUT you can also bargain better with the car dealership when you have a specific amount of money in your mind.
4> But not all lenders will give you a blank check car loan just like that. They will want to know the specific model you want along with the VIN number and the year of manufacture. But still you will have a pre-approved loan in your kitty before you go shopping.
Now that you know more about blank check car loans, how do you go about getting approved for one? Here are a few tips you need to keep in mind.
1> Clean up your credit history: One of the most important deciding factors for getting a car loan will be your credit score. If you have an excellent credit history, you can negotiate with the lender for a lower rate of interest. If you have bad credit, for 6 months before you apply for the loan, make timely and regular payments on your credit debts. This will bring up your credit score.
2> Loan term period: It is better to get a higher interest for a short-term loan than a lower interest for a long-term loan. You will not want to pay for your car for the next 6-10 years of your life.
3> Contact your local bank, credit unions and online lenders and find out whether they offer blank check car loans. Compare quotes and settle for one that suits you.
4> Once you have been approved, just do the paperwork and wait for the check. Shop for your car with confidence once you have it in your hand.