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Car loan pre-approval in Halton

Car loan pre-approval in Halton

 

The process of financing a vehicle in Halton can be a little nerve-wracking.  Something that can get you started on the right foot is getting pre-approved for a loan before you’ve even begun to look at cars.  What does it mean to be pre-approved?  Let’s find out.

It can be easy to get carried away researching cars and finding the perfect one for you.  Maybe you’ve done some math and have an idea of what you can afford, but is that enough information to know you’ll be approved for a loan?  Probably not, especially if you have low or no credit.

This is where a pre-approval comes in handy.  Before you lose your heart to a car you can’t afford, apply to be pre-approved for financing so you know the maximum amount the lender is willing to offer.  You’ll need to provide the potential lender your income, debts, and credit score so they can determine if they want to offer you the loan or not.

Having this information is beneficial in your shopping experience because then you can limit your search to only those vehicles that fall into your price range.

You may have heard that applying for pre-approval will affect your credit score, and sometimes it does, but if you apply to several places over the course of a few weeks, you won’t take hit after hit on your score.  Credit bureaus can recognize that you’re rate shopping for your car loan.

It’s also possible that the lender could do a “soft pull” of your credit history, and this method has no impact on your score.  If you decide to buy your vehicle after pre-approval on a “soft pull”, the lender will have to do a “hard pull” on your credit for the final application.

Another great thing about getting pre-approved is that it can be done online!  Instead of having to go back and forth between a bank and the car dealer, you can apply online and then start browsing for your car on the site once you’ve received the word you’re approved.  Which could be within minutes, but may take a couple of days, depending on when and with whom you’re applying.

When you’re ready, fill out the application and let us help you get into the best car for your budget.

 

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    Categories: Auto Loan