How to Prepare Your Finances to Buy a Car
Who doesn’t want to ride a car that has cool new features and is seen on swanky models that will make heads turn?
For a long time, buying a really nice car was on my financial agenda but somehow it never really worked out for me.
I realized that I was only half serious about it. Why? Because I was not prepping myself enough for such a big investment! Now you surely don’t think buying a car is as good as buying groceries!
I began to write down a list of things that I needed to do before I began even looking out for finance for my new car. I thought if I share my list here, people out there will benefit and if I have missed anything that could be set right too. If there is any omission do leave a comment behind or contact me on my email. To do that click here.
- Check Credit Report for any errors that may have inadvertently crept in:
A lot of people overlook small errors and omissions in their credit report notwithstanding the fact that it can adversely affect their credit score and ultimately the interest rates that they are offered on loans.
A big percentage of people have conceded to the fact that when they have taken the initiative to set them right, their credit scores have drastically improved.
- Check your three-digit credit score:
A credit score of 700 and above is a must in case you are looking for attractive interest rates on your car loans. Check to make sure that you are honoring all your financial commitments on time in order to make sure that you project yourself as a responsible borrower.
- Create a corpus for a down payment:
You will need to make enough saving to be able to pay down at least twelve percent of the car’s value. Rest can be paid in installments to your lender. Saving for the down payment can mean that you are single-mindedly chasing your dream and that you will make sure that your loan will have bigger chances of being processed quicker and at a great rate.