Car Buying 101
No one ever said it would be easy to buy your first car, did they? Chances are you’ve received lots of advice on your way to the dealership – not all of it helpful and much of it conflicting. So, before you take that test drive, there are some things you ought to consider.
Understanding Your Credit Score
Most people believe if they make all of their credit card, car loan and mortgage payments on time, they can expect their credit score to be great. However, focusing on your payment history alone will not give you a complete breakdown of what actually goes into your credit score. There are numerous factors involved in determining a single credit score including:
That new car smell can be absolutely intoxicating, and the comfortable driver’s seat can entice you to lay out your entire savings into a new vehicle purchase. However, the sticker shock can quickly bring you back down to financial reality.
The time has come! You’ve saved for your down-payment. You’ve triple-checked your finances and know your available monthly budget. You even found the perfect car online. Excitement is in the air, along with that new-car smell. And…you’re walking into a trap!
We live in a world where loans can help us afford the items we need without having to make hefty initial payments for the items. People are getting mortgages to purchase their first home, car loans to have an extra vehicle for their spouse, personal loans to finance a home business, and credit cards to pay for incidentals. Providing a lender with the appropriate information will allow them to make the best decision so they can approve you for the loan that you want.
Yet what information is used by lenders to make this decision?