Different Loans for Purchasing a Car – Whether Your Credit Score is Low or High

Looking to purchase a new car? Before doing so, it is important that you are very familiar with where your credit stands, and what your score is. Your credit score and overall credit history will affect the type of loan that you can take out for your car purchase and will also affect how high the interest rates are that you will have to pay. Luckily, whether your credit score is high or low, there are several different options that you can look into when purchasing a car. Here are some tips on where to start:

• Thoroughly check your credit report. Checking your credit report is totally free and easy to do. It is important that once you start thinking about purchasing a car, you track your score for a few months to make sure it is in the best place it can be for when you head to the dealership.
• A pre-approved car loan. If you’re interested in taking a loan out on your car, it is important that you have a high credit score before the lender performs a formal check on your credit. In addition to your credit history, you will also have to submit other information such as your annual income.
• Subprime auto loan. If your credit score is not as strong as you’d like, you have the option to take out a subprime auto loan. If you are unfamiliar with these, these loans are not as traditional and are a bit riskier, as they are attached to higher interest rates and fees.