GOLDEN VALLEY, Minn --Obtaining an auto loan is one of the most important financial decisions you will make. The experience can be confusing, cumbersome and expensive - but it doesn't have to be. School yourself on auto lending and you'll come out a winner.
When considering buying a new or used Kia, there are a few key points to take into consideration when applying for loans:
The loan term
The loan term refers to the amount of time you have to repay the lender. If you sign up for a five-year term, in five years you'll pay the money back and will own the vehicle. Loan payments are usually made in monthly installments, and the lender technically owns the vehicle, but you agree to be responsible for it. You won't have the title to your vehicle until it you have paid the loan in full. If you don't make your loan payments, the lender can repossess the vehicle.
Your credit score
Lenders will mostly base your interest rate on your credit score. The higher the credit score, the lower the interest rate. Credit bureaus determine your credit score based on how much debt you have, if you pay bills on time, your debt-to-income ratio and other factors. People with lower credit scores pose a higher risk for lenders. Those without long credit histories may also be charged higher rates.
The car financing process is simple when you visit the professional staff at Luther Kia of Bloomington.