How to Get Pre-Approved for a Credit Union Auto Loan
If you are looking to purchase a new vehicle, there are many decisions you’ll have to make. Cost – and how you’ll pay for the vehicle – is the biggest factor to consider. Many auto loan lenders can evaluate your financial status to determine if you qualify for a loan (and the amount). In fact, seeking pre-approval for a credit union auto loan before you begin car shopping is an excellent idea. Pre-approval allows you to know how much you can borrow/spend, and you can even negotiate for a better rate with auto dealerships.
4 Steps to Getting Pre-approval on a Credit Union Auto Loan
Build Up Your Credit Score
Start by scrutinizing your credit report to find out if there are any unpaid or overdue bills. A tainted credit report results in a lower score and lower likelihood of being pre-approved for a loan. If your credit score is lower, you may still be able to qualify for a loan with a higher interest rate. Consider your purchasing timeline and determine whether you can afford higher rates for your loan.
The benefit of being pre-approved with a strong credit score is you’ll have much more negotiating power. You’ll be able to visit different dealerships and compare multiple options because you already know what you can spend.
Don’t Limit Your Options
When seeking pre-approval, keep in mind there are many credit union auto loan providers. Apply to more than one lender and compare the rates that you get. CCCU will consider your financial history and provide financing that suits your current situation.
Consider Your Income
When looking for an auto loan, consider how much you make every month. Your target should be to spend 10% or less of your monthly income on repaying the loan. Furthermore, you’ll be more likely to qualify for pre-approval if your income meets this standard. If a credit union auto loan lender sees your income is flexible, they’ll be more likely to offer favorable rates.
Maintain a Savings Account
Having a healthy savings account is another factor that increases your chances of getting pre-approved for an auto loan. Savings will show you have enough cash reserves to handle unexpected emergencies or a temporary loss of income
At CCCU, we provide competitive credit union auto loans to the Las Vegas area. Our financing options are defined by low rates, flexible repayment terms and bonuses where applicable. In other words, we simplify the application, approval and repayment processes, so you can spend more time doing what you love. Contact us at 702-228-2228 for more information.