If you're applying for a car loan, you probably want to do everything in your power to boost your chances of getting approved. At Heritage Honda, the experts in our Honda financial department do everything that they can to help drivers finance the new car of their dreams, but there are also some things that you can do to improve your chances of securing that car loan.
Pay Off Existing Financial Obligations
When we evaluate applicants, we look at their credit history and credit score. Part of that means taking a look at their current financial obligations. Do you have a lot of student loan debt? Credit cards that are maxed out? A new mortgage? All of these can make an applicant look as if they will be financially overextended by a new car loan.
If it's possible, pay down some of your debt before applying for a car loan. Not only will it ease your financial burdens a bit, but it will often make it easier to get approved.
Consider a Used Car
Some people think that only new Honda cars can be financed, but you can also finance a pre-owned Honda vehicle! You know that Honda cars are built to last, so a used model still has many miles left to drive. They also cost less money, which means a smaller loan and possibly better chances at approval.
Get a Co-Signer
If you have a low credit score or not much of a credit history to speak of, your best option may be getting a co-signer. This is someone with good credit who will sign onto your loan with you. They would be held responsible in the event you default.
If you want to learn more about auto loans, visit our website or our Honda dealership near Baltimore. We'll help you get the financing you need to drive away in a Honda car, truck, or SUV!
