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Tips for your first auto loan

If you are in the market for your first car, getting an auto loan would certainly make it a lot easier on your bank account. In fact, a car loan may even allow you to buy a car without actually having enough money in the bank. You can then repay the loan over a period of time. For this service, banks and financial institutions will charge you interest. Here are a few tips that will help first time buyers are far as getting an auto loan in Portland is concerned: 

1. Your credit score is very important when it comes to taking a car loan. It will be extremely difficult for you to get a bad credit auto loan in Portland or elsewhere if your credit score is bad. Even if you have never taken a loan in the past, it still won't be too easy to get your first auto loan. The best case scenario will be when you have taken multiple loans in the past and have repaid all of them within time. 

2. You can significantly increase your chances of getting an auto loan is you are willing to make a down-payment against the car. The amount is usually 10 % of the total value of the vehicle and can even help you reduce the amount of interest you pay over the tenure of your loan. It's quite obvious really, the lower the amount of money you take on loan, the lower the amount of interest you will have to pay.

3. Another thing that banks and financial institutions consider is your employment stability. If you have been working at the same place for a long time, you will be more likely to get a loan than if you keep jumping from job to job every year or so. The main reason for this is because they would prefer lending money to a person that has a stable source of income instead of someone who may not even have a job in a year's time. 

4. If you are buying a used car on loan, the loan company will also factor in the age and mileage of the vehicle. Most lenders will not lend you money if you are buying a car that is too old or has done more than 100,000 miles. 

5. Lastly, the cost of the car you want to buy will also be factored in when taking an auto loan. If the value of the monthly repayments seems too high for you to afford with your current income, chances are you might just be denied the loan. That's why it is important for you to apply for a loan that is within your budget.

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