Get a Car Loan Online

It's time to get a new car and you have found the perfect one for you. You have some money to put down, but how do you pay for the remainder of the price? More than likely you will need to take out an auto loan. One way to obtain a car loan is to get one online. Going through an online dealer may get you faster approval time and lower rates. Here are the steps on how to get a car loan online.

Steps

  1. Determine how much you are willing to spend.
    • Figure out how much you want to spend on your car. Factor in other expense such as gasoline, insurance and maintenance. Then go online and find a loan payment calculator, which will tell you how much you will pay each month given the total loan amount and estimated interest. If this figure is too high for you, you will have to adjust your car budget and look for something with a lower price tag.
  2. Check your credit score.
    • Lending companies will check your credit score when you apply for a car loan. Whether or not they give you a loan may be dependent on your credit history. Or, if they do grant you a loan, your interest rate may go up if you have bad credit. It's best to arm yourself with your own information so that you are well informed.
    • You can obtain your credit report and credit score through many online sites for a small fee. You should check your score from all 3 credit bureaus: Equifax, Experian and TransUnion.
  3. Look online for a lender.
    • Many banks offer car loans online. You can apply and get approved all over the Internet. There are also many loan funding sites available.
  4. Compare interest rates.
    • Look at more than one bank or lending site. You want to be able to compare the interest rates, and look for the one with the best rate. The lower the interest rate the less you will have to pay over time.
  5. Compare loan terms.
    • The loan term is the amount of time you get to pay back the loan to the lender. Most car loans are 3, 4 or 5 years. Pay attention to the interest rate as it relates to the loan term. Some lenders will have lower interest rates for lower loan terms. However, this will mean paying a higher amount each month because you are paying the same amount off sooner.
  6. Look out for other stipulations.
    • When comparing quotes and companies, be sure to check for any fees and stipulations they might have. Some lenders may have penalties for paying off the loan early or for paying your monthly payment late.

Tips

  • Raise your credit score by paying off debt, and paying it on time. Late payments will bring down your score.

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References

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