SUVs have proven to be among the most versatile and valuable vehicles ever. No wonder the demand for them continues to be high. If you need an SUV but don’t want to pay top dollar for a new one, you’re in the right place. We’ll discuss getting the best financing rates on your next SUV loan.
So what do lenders consider when you turn in an application? The two biggest considerations are your credit score and income level compared to the amount you want to borrow. Let’s have a look at these.
Credit Score: Your credit score measures your payment history and how much credit you currently have. Credit scores range between 300 and 900, and a higher score is better.
If you regularly pay bills on time and manage your finances well, your score should be in the upper range. Conversely, failing to make credit card payments, or paying bills late, will substantially hurt your score. As a result, you may be denied a loan or charged a much higher interest rate.
You’ll likely qualify for a low rate if your score is 700 or above. Scores below about 670 will likely result in higher rates. You should still be able to qualify, provided you have a good steady income. It’s always a good idea to periodically check your credit score to correct any mistakes or inaccuracies.
Income: Budget less than 18% of your monthly income towards a car loan, as loans in excess of that are generally not approved.
Boost Your Chances
If your credit is less than perfect, how can you improve your chances of getting a loan? Here are several steps that will help:
- Set a personal budget. Then, figure out the upper limit you can afford for an SUV payment and stick to it when shopping.
- When applying, you’ll need proof of income, income history, current debts, and your driver’s license. In addition, some companies require a second proof of address.
- Interest rates vary among companies, so you’ll need to compare, but limit the number of applications you turn in. Filling out too many can hurt your credit score.
However, there is a way to get help with all this that won’t cost you anything.
Work With the Pros
At Consumer Auto, we have a wide network of dealers and lending agencies ready to match you with an SUV loan. We’ll shop for the best rates, so you won’t have to!
To get started, fill out our no-obligation form below. We’ll get a little background to begin searching for the perfect deal for you.
We’re the SUV Loan Experts
We want to make your pre-owned SUV search a success. Our finance specialists are the best in Canada, so let us help.
Fill out the form below. It should only take a few minutes. Then, we’ll get back to you quickly with details about how much you’ll likely be able to borrow and how to get the best interest rates.
Your next SUV is only a few steps away, so let’s get the process moving.