Shopping for auto loans in Minnesota? Whether you’re looking for a used car or a new one, our network of Minnesota car loan lenders has got you covered. Best of all, it is free of charge.
We work with an extensive statewide network of companies who want to help you get behind the wheel. These include banks, credit unions, and dealerships, as well as their third-party lenders. They are part of our placement platform. When you apply through us, we work to match you with a company whose approval criteria match your profile. After all, each company has their own set of lending guidelines. If you were to try and find a lender on your own, it’s possible for your application to be declined multiple times before finding one willing to approve you. We have many clients who’ve had a similar experience before coming to us. Our system boosts your odds of approval, especially if your credit history is a bit on the rocky side.
Let’s look at how it works.
- For starters, you submit a secure online application. We have SSL encryption enabled on our application page, so you can have confidence that your privacy will be protected.
- Next we match you, if possible, with the best car loan lender in Minnesota, given your location, income, and down payment. This saves you from applying in person to banks and lending companies for whom you wouldn’t be a good match. As you know, each application requires a hard credit inquiry, which results in a slight decrease in your overall credit score. Of course, minimizing such inquiries is recommended.
- When pre-approved, a special finance manager will get in touch with you either by phone or email. They will answers the question you no doubt have regarding your rate of interest, dealer options, necessary down payment, and more. Importantly, you will be under no obligation to accept the offer they give you. That’s the beauty of our service. If you accept, you’re pre-approved. If you decline, you have a quote to use as leverage with the next company.
- Lastly, you complete your car loan paperwork and pick out your vehicle from a nearby dealer. You may be required to furnish certain documentation to finalize the contract, including proof of income, insurance, and a valid MN drivers license.
Go here to submit your secure application.
Consumer Credit Statistics: Minnesota
In the state of Minnesota, the average income on a monthly basis is $3,698, while the average credit rating is 707. The higher your credit rating, the better your rates of interest.
Most of the companies in our network require that you have a consistent job with $1500 income per month, and your total monthly debt, inclusive of your new loan, should not surpass one half of your wages. For people who live in Minnesota, this means $1,849, on average. The simply want to ensure that you have the means to repay the borrowed funds, and they want to make sure that your existing debts are not going to stand in the way.
Earnings or credit scores too low? You may still be eligible as long as you:
- Have a Co-signer. Typically, this is a family member or close friend of the family. Just remember, to be of assistance, this person must have a good credit record. If cannot make your payments for any reason, this person will become responsible for paying off what you owe. So this is not a responsibility to be taken lightly.
- Trade in a Car or Truck. Trading in your existing vehicle will give you trade equity. Basically, this serves as a down payment. Even if your dealer or lender does not require it, putting money down has all sorts of advantages in terms of equity, finance fees, and of course approval rates.
- Supply a Larger Down Payment. This goes hand in hand with trade equity. Any company is going to look on your application more favorably if you can supply a significant down payment.
- Go with MN Buy Here Pay Here Loans here. This form of lending typically doesn’t require a credit check, but it has its own set of disadvantages as well. We suggest you learn more before going down this path.
As far as your budget, it’s best to spend just 18 to 20% of your monthly income for such things as your:
- Installment Payments
- Repairs and Maintenance
For your typical Minnesota resident, this means $666-$740 each month. Shelling out more than this will endanger your credit score and finances. With fuel prices rising, it is best to pick an economical car with great gas mileage. In many instances, buying a used car in Minnesota is a good option. Used cars are more cost-effective to buy and to insure. Plus, they lose value much less quickly than new autos. For cheap used cars in Minnesota, go here.