Apply for a new auto loan and bring home the dream car that you have dreamt for so long time. These loans are provided by different baking as well as financial organizations with a cheap rate of interest. But the eligibility criteria are different from those of the unsecured loans that are available in the market. You need to have a credit score of at 620-660 in order to be eligible for these loans. In case if you have a credit score of less than 620 then you may have to land up paying a higher rate of interest. Moreover the other thing that you should keep in mind before applying for new auto loans is reducing the debt to income ratio. By no means should it be more than 50% of your limit. Keeping credit cards at a higher limit will make the lenders doubt about your ability to repay the loan. The final outcome to this may be you have to pay a higher amount of interest or it may also lead to the denial of your loan.The main trick that you need to know before applying for a new auto loan is about the down payment. If you give more amount of money as down payment for your vehicle then in that case you will have to pay a lower amount of interest. This will not only save your money but also enable you to clear up the repayments in quick time. Usually the down payment for the purchase of any vehicle in US is 10% of the cost of the vehicle. But if you have the ability to pay more then in that case you can opt for a larger sum of money as down payment for the loan. The best deal in case if you are buying a new car is to take out a loan from the lender and make a down payment to the car dealer. In this way you can also avail the discount which can go as high as 10% of the vehicle cost. So in one way you pay less amount of money for the car that you are actually buying.
Herry Marker is a senior finance market analyst and gives his useful advice by his articles. To know more about auto loan, bad credit auto loan, used auto loan, new auto loan, Auto Financing. You can visit http://www.nationsautoapproval.com
