How To Get a Car Loan

When purchasing a car, it’s important to know how to get a car loan so you know what to expect from your loan. Let’s learn more about how to get a car loan with this helpful guide by Auburn Honda! For more information about how to get a car loan near Sacramento, feel free to contact us anytime!

Checking Your Credit Report

When learning how to get a car loan, you should first check your credit report to make sure there aren’t any errors that may appear during the approval process. Through the major credit reporting agencies such as Experian and Equifax, you are entitled to an annual credit report for free.

If your credit score is 600 or less, you may benefit from waiting six months and building your credit prior to applying for your loan. This can help immensely and can make a huge difference when you receive your interest rate.

Should You Apply to Multiple Lenders?

It’s beneficial to apply to multiple lenders, as you will be able to get the best interest rate possible for your loan. Different lenders will often focus on different parts of your credit score, providing you with different quotes from each. Here are a few different lenders you can apply for:

• National Banks
• Credit Unions
• Online lenders who specialize in auto loans
• Financing through the dealer

Even though you’ve applied to multiple lenders, you may still decide to go through the dealership. If you go through the dealership after applying to multiple lenders, you’ll be confident that you have the best interest rate around Roseville.

Getting Pre-Approved

When you are pre-approved, you’ll get quotes from a number of lenders, giving you the opportunity to receive a number of different offers. This is due to the fact that each lender will likely choose different criteria for your approval. When lenders pull your credit for pre-qualification, it requires a “soft” pull, which does not affect your credit score. When you’re going for pre-approval, this requires a “hard” pull, which will temporarily lower your credit score. 

Learn More About The Financing Process With Auburn Honda!

Now that you know more about how to get a car loan, come stop by Auburn Honda to get the best rates around Citrus Heights! You can meet with our finance center, and even get pre-approved online!