Applying for a car loan can be stressful and confusing. Will you get accepted? What rate will you be offered? What if you don’t understand finance jargon? That’s why UK Car Finance have compiled a list of ways to make your decision that little bit easier…
1. Your credit score – there’s always room for improvement
Before you even start applying for loans, make sure your credit score is the best it can be. A few of the easiest ways to improve your score is to register yourself on the electoral roll, check for any mistakes on your file, pay all your bills on time, or checking if your credit file is linked to another person. Your credit score is really important as it can determine what rate you could be offered, so make sure it’s in the best possible condition BEFORE you apply!
2. Calculate your loan first
Wouldn’t it be great if you could check what car loan you could be offered without harming your credit score? With the Car Finance Calculator from UK Car Finance now you can! You can use the car loan calculator to find out how much you can borrow and therefore which cars are in your budget, even before you officially apply!
3. Which type car loan is right for you?
There are a few different types of car finance and choosing the right one can be hard! If you want to own the car, then a Hire Purchase (HP) agreement is probably best for you. Alternatively, if you get bored of a car quite quickly then a Personal Contract Purchase (PCP) may be better suited.
4. Can you afford all running costs?
You’ve got the car you wanted on the best possible finance deal within your monthly budget, great! But have you factored in all other costs associated with running a car? You need to make sure you can pay for your finance deal, car insurance, car tax, fuel, and more (usually) within your monthly budget! This might seem overwhelming, but if you carefully plan, you would definitely manage. Like, if you can find more info on the best quotes available for the car insurance, you can save some extra bucks there! You don’t want to sell yourself short every month.
5. Know your finance jargon
It’s so easy to get bogged down by jargon that finance companies use in their agreements. If you’re unsure, why not use an online jargon buster? Discuss your agreement more confidently before you agree to anything! Also, if there’s something you’re not sure about, ask as many questions as you need. Car finance experts are here to help and want you to make a fully informed decision.