subject: Four key points lenders take into consideration when pre approving an auto loan [print this page] Four key points lenders take into consideration when pre approving an auto loan
If you are in the market to purchase a vehicle new or used, then you are ready to embark on a journey that so many take on a daily bases. Some people may have everything all figured out and other just don't have a clue. Depending on where you are financially will dictate your options. You either have good, fair or bad credit, but in any case you are looking to get into a vehicle so you need auto financing.
When it comes to auto financing there are intuitions that can assist you. There are banks, credit unions and Sub prime lender. With the sub prime lender in order to get financing through them you would need to work with a preferred dealership that specializes in bad credit car loans. No matter which type of institution you decide to work, there are four key points they are looking for. And they are Ability, Stability, Creditability and Flexibility, i will break down each one for you.
Ability- will be the Capability that you have to take care of the loan payment on a consistent base until the balance is paid in full with out being late.
Stability- will be the Constancy of you residence and job time. One thing the lenders don't like to see is someone that bouncing around from place to place and that do not have any steadiness. This shows instability.
Creditability- can be determined by past or present item of credit that have been giving to you, the lender want to see how you take care of this items. An item of credit that is looked at heavily is a closed or open auto loan. The status of that loan can determine your next one.
Flexibility- will be the amount of room you have to move things around if need be, we all know bad things happen to good people. So if you have some financial elasticity it can help out when things get a little rough.
Now that you know the four keys you can put yourself in the lenders shoes for a moment. If a person couldn't show that they have at least two of the four keys. Would you take a chance at lending them your money? Just about everyone will say no, so let's work on the keys to getting your auto loan pre approved.
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