You may take some time to get a car loan. However, you can speed up the process and get a car loan faster.
Tips to take a faster car loan
If you want car loan finance instantly, here are some methods –
Check your credit score
A credit score is an important criterion. You can check your credit report to know how much your credit score is. If your credit score is 750 or more, you loan faster and at a lower interest rate. But if you have a credit score between 650 points to 750 points, you will get the car loan at a higher interest rate than the former. If credit defaults in your report or you have a score lower than this, you might not get the car finance at all!
Timely payment of Bills
Your monthly pre-tax income and a manageable debt-to-income ratio (DTI) should be less for a quick and easy loan. Though you cannot change your earning amount, you can continuously improve your DTI by paying your bills, such as pending credit card bills, on time. It indeed has a positive impact, and you may get faster car loan finance.
Paying bills on time leads to a better credit profile. If you have made timely payment of your bills for the last six months before applying for a car loan, it will assure the lender that has always you are your debts or Equated Monthly Installments (EMIs) on time. It will help you get a loan quickly.
Look for the quickest lender.
There are many lenders available in the market to secure a loan for your new or used car. If you do some market research and read customer reviews, it will not be difficult for you to identify which financial institution renders car loan in the least time.
Borrow a less amount
You should apply for a minimum loan amount. Try to increase the amount of down payment so that you need to apply it for a lesser loan amount. The loan that has less amount is approved more quickly. If you make a big down payment, you can reduce the sum you need to borrow to match the price of the car. Also, if you apply for a lesser loan amount, you will repay the same more easily and quickly. You can get the advantage of smaller EMIs or a shorter loan duration.
Though your focus may remain to be taking the fastest loan, read the documents related to the terms of the loan well. Before finalising the financing scheme, know if you are getting the lowest car loan interest rate. Do not be tricked into opting for an expensive payment mode. The loan must be conclusive and as per market norms.