So it’s pretty much understood that you should check out your credit report before going to pick up the new car you’re buying, but there are other requirements that you must meet if you want to get a good deal on buying a new car. If you don’t meet them, you either won’t get the car at all or won’t get a good deal, and it doesn’t matter that you have the most shining credit. Here they are.
- A minimum monthly income of sixteen hundred dollars that you can prove with check stubs or other documents. It doesn’t matter if you have fantastic credit if you don’t have any money. It’s a known fact that it is a bad idea to pay out more than twenty percent of your monthly income towards car things, so if you make lower than this amount you’re likely to break that rule and probably can’t afford a car.
- A total of six months history living at the same address. Having a longer and good history at your place of residence tells the loaners that you are established and aren’t just jumping around all over the place. It makes you look more steady and like less of a risk.
- History of employment at the same place for at least six months. This also makes you look more steady and less of a risk. Also, if you have a sizeable history working at the same company, it’s obvious that you don’t have a chance of losing your job and not being able to pay your car note, which might be a problem if you changed employment every two or three months.
- At least a year of good credit history. This is why sometimes you should spend more time preparing to buy a car than actually buying it. Waiting for a car while hopping rides with others and establishing your credit history pays off.
- If you want the lowest rates out there, you should have a credit score that’s higher than 680. If it’s lower, but above 600, you might get ten to fifteen percent APR. If it’s under 600, it’s pretty hard to get approval at all. If it’s under 550, you might as well just give it up.
Cheers,
Fashun Guadarrama.