By: Raymond James
About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.
Are you looking for reliable and convenient fast car loans? There are several steps involved if you want your application to be successful. You need a reputable money lender to offer a reliable car loan, which is possible to find through online research.
Understand that applying for a car loan can be overwhelming, but the process is straightforward when you know what is needed. Today getting a successful car loan is easy and can be done online, and if approved, you will get the results the same day. Here is an extensive guide on ten steps to help you with a successful car loan application.
1. What’s your credit score?
Knowing your credit score is one of the most overlooked steps. Besides, it’s a critical factor in determining whether you qualify for a personal or car loan. Your Interest rate and loan application approval depend on credit score and credit history.
This information will save you the time for applying for a car loan which might not be approved. The higher the credit score, the higher the amount you could be offered for your loan. In most cases, the interest rate also goes lower when you have a higher credit score. For your credit score to be high, you need to have a good income source and have no prior unpaid debts.
2. Extensive research on car price range
The next major step is researching to prepare yourself psychologically for loan application. There are online tools and calculators to understand what is required and interest rates and payments.
When you start your research, you must consider the car worthiness to know the amount of money you need to apply for from the online lender. This research will help you budget, for instance, on car insurance—the car worthiness is determined by the model, insurance costs, and other related expenses.
3. Terms and conditions
Also, research how much money you can borrow and pay based on your financial status. Also, consider how the car price will contribute to the amount and repayment terms of your loan. It will help if you have a clear insight into the terms of repayment and your own budget.
4. Have a list of options
Before filing a car loan application form online, it would help if you took your time to compare different loan options from other lenders or the same lender. A good lending organisation provides secured loans with varying terms of repayment.
Weigh up the interest rates, loan type available, terms, features, fees involved, and lender type. After extensive comparison, you will know the kind of lender you want to deal with in the future.
5. Research about your lender type
After choosing the lender that will offer an amount that meets your needs, research what they are like. Consider reading through customer reviews to know what the lender is like. This information will help avoid scams and identity theft and make sure you’re dealing with someone who provides good customer service. Ensure that your choice provides client information privacy.
6. Apply for the loan
After reading through and understanding what the lender has to offer, fill out an application form online. This process is straightforward, as all is needed at this stage is usually your identity details and security documents. You need to scan and upload relevant documents for verification, or you may be able to use an online portal to submit them.
You are allowed to make changes when you feel you want to back down. There is a given period where you can still cancel your application even though the lender has agreed to provide you with money. This process allows you to know how much you can be given, and if the terms don’t meet your expectations, you can back down.
8. Document verification
A typical lending institution will take a few hours or days to approve your loan or deny it. You have to wait as your documents are verified. They might decline your application if your documents don’t match up therefore, ensure you fill out everything correctly and provide clear identification.
9. Car loan approval
If your loan is approved, the funds are usually paid directly to the car dealer, unless you have another arrangement agreed to. This process is straightforward and takes a few hours.
10. Full secure loan approval
It might take some time for the lender to approve your loan. They have to go through your personal information, identification, income status, assets, liabilities, and information on the car you are buying. They may contact you in case of any query for verification, which might take some time but most are efficient these days due to more advanced assessment technology.