Getting a car might be one of the biggest investments you will ever make next to getting a house which is why you must be as prepared as you can be. A very small amount of people can pay for a car upfront which is why the majority apply for auto loans with a bank, an auto finance company or a credit union. Here are a few things you should do before getting a car loan.

1.  Check your credit score

Just like all other things you want to get loans for, your credit score is a big factor in being able to get a car loan. Make sure to talk your credit score professional about your credit score situation. If you have a low score, you must improve it before applying for an auto loan. If you have a high credit score, good for you! You should still go see an auto specialist to see what car would best be suited for your situation. The specialist will be able to find you the best deals on the cars best suited for you.

2. Consider what car you can afford

Purchasing a car can be fairly expensive, old or new. Therefore, you need to be honest with yourself and analyze what car you are able to afford without going broke. You don’t want to be that person with a fancy car but can’t eat. Use a loan payment calculator to help you make up a plan for all your expenses and budget accordingly.

3. Look for the best rates

You want to find the best deal for yourself. Looking around and comparing is the best way to find them. Do some research and you will save yourself loads of money in the long run.

4. Do Not Submit your Application to Multiple Lenders!

Although you want to be eligible for a loan and give your application more chances, it may not be the best thing to do for your credit score. Sending your application to multiple lenders will hurt your score by approximately 3 or 5 points each time a lender does an intensive assessment of your application. In conclusion, you should choose very wisely and only send your applications to verified lenders and where you know you’re application has a high chance of getting accepted.