Applying for a car loan is sometimes a challenge, especially if you have credit issues that you’re trying to overcome. That doesn’t mean that all hope is lost, however.
There are various steps you can take that will make applying for a loan easier and help you get the new or used Nissan that you desire. Let’s take a closer look at making Nissan credit applications less complicated.
1. Know where you stand
Your credit history is a key factor in any loan and if you have bad credit you’ll typically pay a higher interest rate than someone with good credit. It’s in your best interest to know your credit score before getting started with Nissan credit applications. Copies of your credit report are available from each of the three main credit reporting agencies: Experian, Equifax, and TransUnion. You can receive one report per year from each of the three agencies.
Make sure that you go over each of your reports thoroughly to see if there are errors. If there are, you should complete separate dispute forms for each error that you find.
2. Save for a down payment
If your credit is below average, you’ll probably have to make a down payment (usually of at least 10%). The more money you have for a down payment, the better your chances of getting approved for a car loan, and it helps show that you’re serious and committed to maintaining a loan.
3. Get your documents together
There are certain documents that you’ll want to bring with you to the dealership during the Nissan credit application process: a pay stub (or a W-2 or 1099 form to prove income), or a bank statement that shows a consistent history of cash deposits to your account. Other helpful documents include your driver’s license, your mortgage statement, utility bill or rental agreement to prove residency. In some cases, the lender may ask for personal references.
4. Know what you can afford
Having a realistic idea about of what you can afford will make the application process easier. Review your budget and determine how much of a monthly car payment you can safely afford. If you’re on a tight budget, shopping for a used car might make sense, but keep in mind that your chances for approval might be better if you choose a newer car with fewer miles on it.
5. Applying for loan
The final step in the process is applying for a loan and it doesn’t hurt to shop around. Banks, credit unions, and credit card companies offer auto loans but car dealerships regularly work with those who have credit issues and will know which lender is likely to approve your loan based on your financial situation.
The professionals in the Finance Department of McGrath Nissan will make the application process easier for you. To get started, you can fill out our online financial application form today. McGrath is proud to serve Elgin, St. Charles, Streamwood and surrounding areas.