Unless you’re able to pay cash for a vehicle, your credit will be taken into account when purchasing a Nissan. This isn’t a major hindrance, though. It’s easy to understand how your credit will impact your financing, and financing is often available even for drivers with no or poor credit. Here’s a guide to the credit considerations that will come into play if you’re purchasing a Nissan.
Check Your Credit Score
The first information to look up is your credit score, for this will determine what interest rates you’re able to qualify for. Your credit score will be a three-digit number between 300 and 800. The higher it is, the lower your available interest rate will be.
You can find out what your score is by requesting a report through AnnualCreditReport.com, which is a federally authorized site that works with the three main credit bureaus. Once a year, you can request one report from each of the three bureaus for free.
Consider Improving Your Score
If you won’t be purchasing a Nissan for a few months, you might be able to improve your credit score. Even though credit scores take seven years of credit history into account, the following actions may quickly increase your score by several points (and, therefore, help you qualify for a lower interest rate):
- pay bills on time for a few months in a row
- make additional payments on any bills that are past due
- pay down debt
- avoid applying for new credit cards for several months
Sometimes, these ideas simply aren’t feasible for drivers. Drivers who aren’t purchasing a Nissan right away and can do any of these things, though, will likely benefit when they get a loan.
Find Out How Much You’re Approved For
Once you know your credit score and have raised it as much as possible, find out how much you can borrow. At McGrath Nissan, we make it easy to get pre-approved for a car loan, so you know you’ll be able to borrow, and to apply for financing through the dealership’s website. Filling out the finance application requires a little more information, but it’s still a fairly simple form. The application lets our finance department tell you in more detail the terms that you’re able to qualify for.
Calculate What You Can Afford
After you know how much you’ll be able to borrow, determine how much you want to borrow. Think about both how long you want the loan to be and how much you can afford to pay in monthly payments. In general, it’s wise to not have a loan last longer than you intend to keep the car, and you should still have some room in your budget for emergency expenses after you add in your monthly payment.
Together with your pre-approved loan amount and budget, you should have a price range that’s affordable.
Review Your Financing Terms Before Purchasing a Nissan
Finally, when you come to the dealership to look at Nissans, stop in the finance office to make sure you understand the terms of your financing. Make sure you understand your loan’s:
- down payment
- annual percentage rate (APR)
- additional finance charges
- prepayment penalty
- miscellaneous fees
Should you have any questions about the loan that McGrath Nissan has approved you for, the finance department will be happy to explain the finance terms in detail. They’ll gladly answer your questions and help you get the best finance terms available. For assistance on getting financing when purchasing a car, stop by the dealership at 95 East Chicago Street in Elgin or give the dealership a call at 855-315-4191. We are a short drive away from St. Charles, Carpentersville, and West Dundee.