How to get approved for a car loan {The secrets the dealership don’t tell you when you apply}

come here come here come here come here guess what the car dealership don't want you to know this but today i'm spilling the secret [Music] welcome back to my channel i am sierra pace if today is your first time on our videos welcome we are so happy to have you if it is not your first time thank you again for tuning in if you haven't done so already make sure you hit that subscribe button and make sure you hit that bell so that you will be notified of our next video let's get right into it so today we're going to be talking about how to get approved for an auto loan so since you've clicked on this channel you're in look because today i'm going to give you my top three secrets let's begin step one you want to always make sure that you know your credit score oftentimes we go to the dealership hoping and praying thinking that we have look crossing our fingers and our toes and expecting for us to just receive an auto loan not knowing exactly what our credit score is so my first tip is you do not want to go to the dealership and not know what your score is the reason this is so is because when you have an idea of what your credit score is it's going to give you a more in depth of what you may be able to qualify for so the first tip is to make sure that you pull your fico scores what this means is you want to make sure you know your scores from either the experian website or you want to go to your fico scores from the my fico website below i will make sure that i drop both of these links to knowing where to go to get your fico scores do not go on credit karma in hopes in regards to thinking these are your accurate scores credit karma only gives you vantage scores and these will not be the scores that your lender will see once they pull your credit biles so do not use credit karma and go to the dealership thinking these are exactly what your scores is because credit karma could be giving you a lower score or it may give you a higher score so again make sure that you know exactly what your credit score is before going to the dealership step two you want to make sure that you have a bank account open or if you do not have a bank account i advise you today to go and open up some type of bank account with your local bank i prefer to open up bank accounts with credit unions because they would typically go out of the way for you and help you more than your regular bank wheel but if you do not have a local credit union open up a bank account of some kind you want to make sure that you have a bank account open and that you have transactions going into the bank so since you're working i'm hoping since you're going to apply for auto loan make sure that you have direct deposit set up going directly to your bank this look good to the bank because they see where you're actually using your account and that you have money coming in so if you get paid every week bi-weekly or every month just make sure that you have your check going directly to this account this is going to be good because they'll see that you do have a source of income coming in once you have this set up you want to then go to your bank and you want to ask them what the qualifications are for you to get approved for auto loan with that bank once they give you the qualifications and you know your credit score is accurate and that you have the source of income to be able to pay for this auto loan go ahead and apply with your local bank the reason this is good to apply with your bank is because they will only pull your credit score one time if you were to go and go to the dealership to get your auto loan every time you go to multiple dealerships they're going to run your credit score multiple times at each car dealership this is very important that you know because a lot of people don't know when you go to the dealership to get your credit score in they fill out one application with your information they take that application and they send it to several different banks hoping that one of those banks would pick your auto loan up what this means is each time they run your information through the system to multiple banks it's a hard inquiry on your credit score if you were to go to one car dealership for an example they're going to run your score through different companies so it's a chance that you can have about five inquiries at that one dealership just saying that's not the company that you actually want the car from you're just going around seeing what you can get approved for right so now you go to the car dealership number two since you're going since you were going to a different car dealership they will also do the same thing as the first dealership done you'll fill out the application with them and then they'll send your application and information through multiple lenders as well now you've inquired about 10 hard inquiries in one day this is very very hard on your credit each time you have an inquiry on your credit it is a hard pool the thing about a car salesman is they don't care how it affects your credit score all they want is for you to be able to get approved for some type of car at their dealership car salesmen make a commission offer whatever card that you decide so once they get your application and all the information they need they'll run your credit as many times as they need in order to get you approved with one of their banks that they go through so make sure make sure make sure that you do not fall victim to what the car salesman is telling you if you ask them how many times they're going to run your credit they'll probably tell you just one time but they're not actually running your credit one time they're actually running your credit one time in the system through multiple lenders the lenders that they're going through are already just banks so why not just go to your own bank and go ahead and get that one approval that you need to stop from having so many hard inquiries on your credit within one day from multiple dealerships i advise you to go to your bank and make sure that you can get approved with your bank first once you get approved with your bank guess what now you're going to go to step number three once you get approved for your bank they're going to give you a pre-approval what this means is they have pre-approved you for a certain amount with a certain entrance rate so on your application they will let you know you're approved for thirty thousand based off your income you're approved for fifty thousand based off your income the bank that you choose to go to and that you deal with will have this information for you and guess what that was only one inquiry that you made for that day once you get your pre-approval letter it'll allow you to know exactly the amount that you can afford for your auto loan it'll let you know exactly the amount that you will pay back in entrance it is very very very important that you know this is the best way to get an auto loan the reason why is because you're only inquired one heart inquiry for today that means that you know exactly what amount you can afford when you're going to go to the dealership so you can help in mind what car you may want and you can walk into the dealership and actually purchase something without having to hope and pray that you get this loan so step three once you have your pre-approval then you have the freedom to go and shop at multiple car dealerships without having to wander if you're going to get approved your pre-approval letter from your bank means that they will give you up until that amount of the loan so long as you stay underneath that amount you're good with the bank i like to have a pre-approval because it gives you more power and more authority and control when going to the car dealership so let me give you a story once i got ready to get out of school and i wanted to do my first big girl purchase on a vehicle i decided to go and just go to different car dealerships to see what i can get approved for right i didn't know what credit was i didn't know that you had to have credit all i knew was i wanted a brand new car and i went to different car dealerships in hopes to getting approved not knowing i was actually affecting my credit i ended up going to different places and i got a card that i did not even want this was because my credit score was not high enough and they gave me choices i didn't have the option to actually choose the vehicle that i wanted they chose the vehicles for me and because i was in a rush to get the vehicle i went ahead and just chose one of the vehicles that they allowed me to get from their offer this was the worst mistake i made because not only did they charge me a higher entrance because my credit score was lower but they was able to tell me what car i could and could i have this was such a devastating moment for me but it was a learning moment because that made me realize how important credit was what not to do and how to do it so last year i went and i actually got a new car brand new no mouse on it i left off the lot with five mic in this pace this is a 2019 mazda6 touring edition that you inquired about interior it does come with heated seats lane departure and full leather [Music] what i did was the same thing i'm telling you guys i applied with my bank that i bank with which is a credit union they gave me a pre-approval of how much i can afford and i took that letter i went to the dealership after searching online for the vehicle that i wanted i took that pre-approval and i was able to actually be in control and it felt so amazing because i was able to talk the dealership down for like five thousand dollars on a brand new car that they really didn't want to give me a lower amount on but because i was actually paying with a pre-approval that means i had more control and that they was willing to negotiate and work with me on getting that car that i wanted so it is very very very important that you have your pre-approval so that you won't only stop affecting your credit but you will have more control over what you want and you will know exactly how to go about getting the vehicle that you want so i hope this video was very helpful for you if you found it to be helpful make sure you let me know in the comments if you go and you decide to buy auto loan let me know in the comments what kind of vehicle did you get and if this helps you to get it

Channel: Teara Sharda

Views: 332,818

Keywords: how to buy a car, car negotiation, car buying tips 2021, new car vlog, financing a car, used cars for sale, car buying tips 2020, car financing, used cars, four square car sales, car buying tips, road 2 financial peace, road 2 financial peace credit, road 2 financial peace business, road 2 financial peace make money online, road 2 financial peace business grants, road 2 financial peace personal credit

Id: 45ouFVYESmw

Length: 13min 9sec (789 seconds)

Published: Thu Oct 15 2020