How to Get Approved for a Car Loan

Planning to finance a car? To make sure that you can get a payment plan that works with your budget, our Hyundai finance department offers these tips for how to get approved for a loan.

Your credit score plays a big role in the financing process, which is why you should know what it is before applying for a loan. The better your score is, the easier it will be to get approved. Plus, you can usually get a lower interest rate as well.

If your credit isn’t great right now, there are some things you can do to improve your score, such as: 

• Fix mistakes. It’s a good idea to take a close look at your credit report. Your low score may have to do with an error that can be corrected.
• Consolidate your debt. Bundling your debt into one monthly payment can help raise your score. 
• Use a co-signer. Having someone with good credit co-sign your loan with you can be a great way to get approved. 

Another way to make sure you get approved for a loan is to have a sufficient down payment. If you can afford it, 20 percent is a good goal.

The other benefit of a sizable down payment is that it will reduce the amount of money you will need to borrow, thus reducing your monthly payments. If your new Hyundai car will replace your old one, you can also think about trading it in for money to use for your down payment.

At Mike Miller Hyundai in Peoria, we want to help you get a loan, and you can start by filling out our online application. Regardless of your credit score, we’ll work with you to get a loan that matches your needs and budget.