Automobile Acceptance Corporation

Regardless of the type of credit you have, financing a used car can take a lot of your time and patience, not to mention money. But it doesn’t have to be that way. Just do some minor homework before going car shopping and you’ll be surprised how easy things can be. Here are a few tips on what to do before walking on a dealership's lot.

1. Review your credit report

You shouldn’t apply for used car financing without first knowing the overall status of your credit rating. The strength or weakness of a credit score plays a large role in determining whether you will qualify for credit and what interest rate you will receive. Therefore, it's critical to make sure your credit report is in the best shape possible before shopping for a vehicle. The first thing to do is to request a free copy of your credit report from each of the following credit reporting agencies:

Equifax: 1-800-685-1111, www.equifax.com

Experian: 1-888-397-3742, www.experian.com

TransUnion: 1-800-916-8800, www.transunion.com

Once you receive your free reports take the necessary steps to correct any red flags such as typing errors, bad information and open credit accounts that are no longer used. Next make sure all of your lines of credit are reported accurately. If not, contact the lender to rectify the situation. If you spot any signs of identity theft immediately report it to all of the credit bureaus. By reviewing your credit report and taking any necessary actions you will have a better idea of your financial situation and you will increase your chances of qualifying for a used car loan.

2. Set a budget and stick to it

It’s very easy to be tempted to overspend when you are at the car dealership, sitting behind the wheel of your dream car. Before you fall into that trap, it's a good idea to know your price range for the vehicle you want to buy and stick within that range. As a general rule monthly car payments should not exceed 25 percent of your monthly net income. Once you have figured out your budget bring a printout to the dealership as a reminder.

3. Review all details before signing the dotted line

When buying a used car many consumers don't review the purchase contract thoroughly before signing. As a result, they may agree to things they didn't plan on buying such as an extended service contract or unnecessary rust-proofing. Before you sign any papers or hand over any money, check the figures in the contract and understand all the charges. All extra fees should be questioned immediately. Consumers who feel out of their comfort zone should walk away from the deal.

If you do your homework and know what to expect before financing a used car the paperwork process can go quickly and easily. But more importantly, you will receive a used car loan that you can feel good about for the life of the car.

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