Securing an auto loan can be a pretty quick process if you have good credit and know what you want in terms of cars. But before walking into a car dealership, it’s important to do your research and prepare for this decision carefully. Be wary of quick and easy loans that are high in interest. Taking time to walk through these steps will help you secure a loan confidently that will match your financial needs. Here are some helpful tips on how to secure a successful car loan:

1. Check your credit report

If you pay your bills on time and avoid penalties, your credit should be in good shape. It’s a good idea to check your score by ordering a free copy of your credit report from any of the major reporting bureaus, like Equifax.

2. Shop auto loans with more than one lender

You can apply for a loan through the car dealership, but it’s also smart to check with your own bank as you may be eligible for a preferred rate being an existing customer. There are also lots of options through local banks and credit unions, or even private lenders.

3. Get pre approved

Getting pre approved for financing will help secure your loan, however it does not guarantee that you will actually qualify. The pre approval process is helpful when comparing loans because you will receive the details about the interest rates and help you budget for your vehicle purchase.

4. Set a budget for a car

With the information you receive from the loan application and approval process, you can now start looking at different cars that fall within your budget and under the maximum loan amount. When looking at vehicles, be sure to take into consideration what your monthly payments will be as well as taxes and other fees. Depending on which lender you go ahead with, they may also have specific requirements of the type of vehicle you can purchase.

5. Finalize your loan

Now that you have selected your car, it’s time to finalize which loan you are going to go ahead with. If you decide to go with your bank, they will provide you with instructions on how to finalize funding. If you go through the dealership, they will generally handle all of the paperwork on your behalf and contact the financing company to initiate the funding.