A car is a major purchase for which many people need financing. Many car buyers lack the money in their bank accounts to buy used and new cars outright. They rely on lenders like banks, credit unions, and car finance companies to extend loans to them.
When you plan on buying a vehicle from one of the used car dealers in Rockford, you can apply for financing online along with shopping for a car to buy. You can hedge your chances on being approved for financing by knowing what factors that lenders take into consideration.
Credit Score
Out of all the factors that lenders consider first, your credit score is arguably one of the most important. Your score reveals how responsible you have been in paying your bills on time. It also reflects how well you have handled lines of credit that were extended to you in the past.
When you apply for financing to buy a car from one of the used car dealers in Rockford, you want to check your score to make sure it is within the acceptable range. Many lenders prefer to work with customers whose scores are at least in the mid-600 to 700 range if not higher.
Down Payment and Income
Lenders also will consider how much money that you plan on putting down on a car as well as your monthly income. If you can put down 10 to 20 percent of the new car’s value, you stand a greater chance of getting a financier to work with you than if you put nothing down at all.
Likewise, your income will be taken into consideration. Your income should be high enough to make the payment easily.
You can find out more about used car buying online. Contact McGrath Volvo Cars Barrington at MCGrathVolvoCars.com.
