Solve Your Auto Loan Trouble and Get Instant Approval on Car Loans

Many Americans drive to work. So, it's no secret that cars a definite necessity in our country. Over the time, there has been an incredible increase in importance of cars. Sadly, so has been the rise in car prices. Not everyone can afford to make a cash purchase and car loans seem to be the only alternative.

There are misconceptions when it comes to car loans. People often get the wrong impression that credit scores are the sole important thing for getting a car loan. But, the reality is that there are several other things which are important to the lender. If you get them right, then you can easily achieve instant approval.

What Factors are considered by the Lender in Approving Your Car Loan?

Income and Employment

Lenders want you to earn an amount that can at least help you make regular payments. Most set their minimum limit at $1,000. Also, when you have stable job, it helps to pay off debts. So, lenders insist on it.

Credit Score

Credit score and credit history help in ascertaining your debt repaying ability. Lenders can know everything about your credit behavior by taking a look at your report. So, it is important that you remove all errors before applying for a car loan.

Total Debt to Income Ratio

This ratio is important because it manifests your total debts and shows whether your income is sufficient to pay off the debts or not. Lenders won't offer an auto loan to you if this ratio is over 50% because it will make you a very risky credit borrower.

Term of Loan

Shorter the term, more the savings! This is true as you'll save money by avoiding paying interest for a longer term. Also, if you agree to opt for a shorter term, lenders will see your financial strength and offer better rates on auto financing.

Vehicle- Requirements

Don't think that lenders will not have a say in your car buying process. Your new car will be used as collateral and that's why it is important for lenders to know all about it. They may ask you to avoid few cars and even request you to buy your car from a specific dealer/s. You will also be required to give all vehicle related details. So, be ready for it.

Time at Residence

The longer you live at your residence, the better it is because it manifests stability in your life. It also shows that you are regular in paying off utility bills like rent and electricity.

Down Payment

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