1. Check out your credit rating
Get a copy of your credit report. Check for errors and make corrections before trying to get a loan. If there are serious errors in the credit report, you should consider delaying the submission before the end of the correction. This will ensure the integrity of the car dealerships. If you need a car, unfortunately, try to rent a car for a short time until a credit report is found. You can actually save money on fuel, insurance and repair by renting them, which you can add to the first installment.
2. Explain your lending problems.
Do not be sorry. Good things happened to good people. Be specific about any problems or crises that caused your problem. Inform the bank of any serious shocks in your life that could lead to problems such as illness or disaster, such as Katrina or 9-11. Make sure you can substantiate your claim.
3. Do not lie about anything in the loan application
Lenders will reject your loan if it turns out that you have lied to them.
4. Review your earnings.
Make sure you can prove what you are doing. Let your evidence be easily accessible.
5. Save your down payment.
More down means more cars. Larger down payment may sometimes lead to a lender being more favorable in your application.
6. Find out what kind of payment is from your trade.
If you are trading on a car with a pay, get a 10-day payment from the lender. If you have a warranty or additional terms purchased with your car, check if they can be canceled. This will result in a reduction in payment or a refund of money after the vehicle has been repaid.
7. Know how much your car costs
First, check NADA or KBB. Go to CarMax and see what they will buy. Use this data to discuss the best course. Keep in mind that if you receive more than a payment, this amount becomes a down payment.
8. Buy what you need, not what you want.
Set realistic expectations. Do not buy more payments than you can afford. First, restore your loan, and then restore the image.
9. Do not be discouraged.
Good people have better suggestions than people who are working hard with sales representatives.
10. Try other sources to get a loan
Check it online. Lenders such as Capital One, HSBC, Roadloans and CitiFinancial have websites that allow you to apply directly for a loan. You can get better rates and terms from online lenders than from a dealer.
Check your credit card or insurance company. They may have a loan program or a relationship between creditors. A good history of payments with an insurance company can help you get a loan from a bank. Credit unions can sometimes make automatic payouts, which guarantees that you will repay the loan so that they can be more open.
10.5 Do not move from dealer to dealer.
Excessive inquiries may be the reason why the lender rejects an application.
Do not fool yourself “Every application is accepted”
Just because the dealer claims that your application has been accepted, this does not mean that your loan has been approved. Acceptance of an application means that the agency will accept information that will be submitted to the creditor. Approval of a loan application depends on the lender, not the dealer.
DOUBLE BONUS CHECK !!
Reporting adverse effects under the Equal Status Act (ECOA) and the Fair Credit Reporting Act (FCRA) requires the lender to provide certain information to a client seeking funds.
every time a decision is made that is unfavorable to the client. This means that the dealer must apply to the lender for a decision, or TOM (commercial representation) must provide you with a notice of adverse results, indicating why they (the dealer) have refused to approve the loan application, as reported. Without a sales office, he has his own financial company, which is legally obliged to apply to the lender or to report what information the dealer used to refuse the loan application. If the dealer center does not apply, this may violate these two federal laws!