What Do I Need When I Buy a Car?
You should always thoroughly prepare when buying a car. Know your credit score and report, payment range and what you are looking for before applying for a car loan. Make a list of questions you may have and items to take with you when you begin your new car search.
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Employment
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Lenders want to see that you have a job with sufficient income to make the payments and afford your other living expenses. They generally look for a monthly income of $1,600 or more and that you have been with your current employer for at least six months.
Driver's License
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If you are the purchaser and you are applying for a car loan, you will need a driver's license. You can have the best credit in the world, but without a driver's license, that car you love will remain on the lot. If you are paying in cash, a state identification will suffice. You will need a driver's license to obtain automotive insurance, so it is in your best interest to get it before you even start the process.
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Credit Score
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To take advantage of the low interest rates that are advertised, in most cases you need a credit score of 680 or above. You will more than likely pay a higher interest rate if your score is between 600 and 680. Finding a lender willing to finance you with a score between 550 and 600 is quite difficult. With a score below 550, you may not qualify for a car loan. Remember that lenders are different and have their own set of qualifications; ask what they are before you apply.
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References
- Photo Credit Luxury Car sportscar from my luxury car series image by alma_sacra from Fotolia.com
