When you need to finance a car, navigating through all of the different options can be a challenge. Car loans allow you to get the car you need now, without having to pay the entire cost upfront in cash. Did you know that even if you have bad credit, it is still possible to get financing for a car? Here are some other things you probably did not know about .

Your Credit Score Is Important

Have you checked your credit score lately? Do you know what is on your credit report? Each of the three major credit reporting agencies allows you to get one free report each year. Check yours out before you apply for .

If you find an error on your credit report, such as a line of credit that you closed years ago but still shows as open, you can get it fixed. Just notify the credit bureau in writing with proof of your claim.

Did you have to put a freeze on your credit because of identity theft or a data breach? You can unlock your credit just for the company that you are applying for a loan with.

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Find Your Documents

One missing document could curtail your application for a loan. Get all of your documents together and in one place before applying for an auto loan. Some documents you need to include are your identification, proof of insurance, proof of income, social security number and bank statement. If you are married, your spouse may need to sign your application, so make sure he or she is available at the time.

Interest Rates Vary

Interest rates vary by lender. Even a difference of a fraction of a percent could make a big impact on your monthly car payments.

How Payments Work

Some payments can be deducted right from your bank account. Other times, you must actively make the payment. You can pick the day of the month on which to make your payment.

Repayment Plans Vary

Just like interest rates vary, so do the repayment terms. Your monthly payments might stay the same, or they may increase if the interest rate goes up. Some loans have no penalty if you pay them off before the term’s end.

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