Many of us out there don’t have the necessary funds to buy a car and even if we do, it may drain a majority of our bank accounts.  If this sounds like you, don’t fret because you’re definitely not alone.  When it comes down to getting approved for a car loan, there are a few things you can do in order to get the loan and rate that you want.

Shop around:   One of the major mistakes that many new car buyers make is that they never shop around.  Instead, they stick with the dealer who generally has a pretty high interest rate compared to most.  I would recommend that you shop around, especially at your local credit unions.  Your local credit unions generally have some of the best rates around.

Make sure your credit score is great:  If you haven’t checked your credit score lately, I would advise that you do so.  Every year, you’re entitled to getting a free report courtesy of the government.  Since it won’t necessarily show you your score, you can always get it for an extra five dollars or so.  You’ll want to make sure that your score is at least 700 or higher to get the best rate possible.

Have a down payment:  Having a down payment is probably one of the best things that you can do.  Without one, the banks aren’t going to take you seriously, especially if your credit is bad.  Many experts will tell you that a 20% down payment is more than enough.  If you can supply this, it will increase your odds of getting a loan.  20% may sound like a fortune but if you buy a $10,000 car, you’ll only need to bring $2,000.

Get a co-signer if you need it:  If your credit score is bad, don’t worry, there are other options.  What I would recommend that you do when it comes to a bad credit score is that you find a co-signer.  If you can find someone that can help you out, this will increase your chance of getting approved.  Just make sure that the person co-signing with you has a better credit score than yourself.

There are a lot of banks and credit unions out there that are willing to loan you money.  Go out there and get 3-5 loan quotes.  Try some of the tips mentioned above and you should most likely find a rate that fits your budget.