With extended payment period options, and low gas prices new car purchases don’t have to break your monthly budget. Before you put ink to paper on a new car there are several Minnesota auto loan best practices and a variety of financial prep work you should undertake beforehand. In this post we will explore some helpful auto loan practices. That could help improve your transition from that old vehicle into your new (or used) dream car.
If you are thinking of purchasing a new or used car or truck, consider a car loan from North Star Credit Union.
Check your credit score:
Your credit score can play a big role in how much you end up paying, it can very often directly affect the interest you will end up paying on your car loan. Many find it counter intuitive but those with the highest credit scores often get the lowest rates. While those with a poor score will most likely end up with a high interest rate car loan. It is important that you know your credit score before you begin the car buying process, so you understand potential interest options. If you are not sure how to check your credit score, we can help you find out.
Get Pre-Approved for a Car Loan:
Most often an effective way to avoid uncertainty and accurately assesses your car budget is to get pre-approved for a car loan in Minnesota. This means no guessing at the dealership, and it helps you avoid overextending your finances. If you are interested in getting pre-approved for a car loan, we can help. Visit the NSCU Auto Loan Application page, and get pre-approved today.
Choose the best payment option for you:
Car loan payments have a wide variety of options, however they most often range from 36-84 months. A 36 month loan will likely provide you will the lowest overall price but its often high monthly payments (compared to a longer term loan) may put your dream car out of reach. If you have found the perfect car for your needs, but it is not affordable for you on shorter term loan, a long term loan may be a solution. A long term car loan allows you to break your monthly payments into smaller chunks over a longer period, widening your potential car options. However longer loan term will result in a higher overall price than a short term loan. If you need assistance understanding your options contact us today.
Making Your Car Loan Payments:
After you get behind the wheel of your dream car it is important that make your car loan payments on time. By doing this you get a range of benefits, your credit score will likely see a positive boost as lenders see an improvement in your creditworthiness. With a better credit score your next car purchase could see you in a lower interest category, saving you even more money. Car purchases are not the only area you will save in, an increased credit score from on-time car payments can have positive effects on a wide range of financing by lowering the interest rate you have to pay. On-time auto loan payments now can mean big savings ahead, in your future.
If you are thinking about getting a new car or looking at options now, these steps could help you reduce stress and save money on your Minnesota car loan. If you want more information, or have additional questions please reach out and contact us today. We are her to help members explore the best options for them.