Hello, my name is Rhonda. If you have financial goals, this blog can help you achieve them. A few years ago, I realized that I didn't have a good plan for my future and I wondered if my financial needs would be met after I retired from my job. I immediately started planning for my future by speaking with a financial advisor and I learned a wealth of information at our meetings. By following the recommendations of my advisor and by learning everything I could about finances and money, I now feel very secure about my future. If you need financial help for retirement planning, college savings or even for an emergency fund, you can get sound advice by reading my blog. I believe that by following a few basic strategies, everyone can meet their goals and be financially secure.
If you are thinking about purchasing your first car without a cosigner, than you may want to meet with a financial advisor before you go begin looking. They will be able to pull up all of your financial information and answer all the questions that you have about how the process works, what you can do to better prepare, and other questions along these lines. This article will discuss 2 specific things that your financial advisor can do to help you get your first car.
Building Your Credit And/Or Improving Your Credit Score
One of the big things that is going to factor into whether or not you are able to get a car is your credit score. If you have ever been late on a payment or simply didn't pay something off, then both of these things are going to have a negative effect on your payment, with the second making a much bigger negative effect. However, if you have always been on time for your payments, then your score should be fairly good. Another aspect of your credit score is how much credit you have. If you have never had a payment of your own, then you likely have next to no credit. This can also affect your ability to get a car because most lenders want to see that you know how to handle a payment. Whether you need to build your credit, improve your credit score, or both, your financial advisor is going to be able to help you. They will lead you to certain companies that can help you to improve your credit score for a monthly fee. They will also explain to you different ways that you can go about building credit, such as getting a credit card that you pay off each month on time.
How Much You Are Approved For
Another important thing that your financial advisor can do for you is to tell you how much money you are going to be approved for. Knowing how much money you are going to be able to spend on a car can help you to narrow your search and avoid looking at cars that are well out of your price range. Your financial advisor is able to do this by looking at your debt to income ratio and seeing how much money a bank would be willing to lend you for your loan. They will also look at other factors, such as what type of debt it is, if you are currently making payments on it, etc. This is important because things like student loans, that don't have to be paid off while still in school, are going to affect you differently than things that you are currently paying on, such as payments you are making on a computer that you purchased.