Shopping for a car can be overwhelming, especially when you’re trying to figure out how to pay for it. One popular option is auto financing, which allows you to spread out the cost of the vehicle into monthly payments. To make the most of getting a loan for a car, there are a few considerations to keep in mind. From Consumer Portfolio Services to budgeting for the cost of your car, here are some steps to take before applying for auto financing.

Check Your Credit Score

The first step in getting an auto loan is checking your credit score. This number helps lenders determine whether they are comfortable lending you money, so it’s important to know what’s on your report. You can get a free copy of your credit report from each of the three major bureaus – TransUnion, Equifax, and Experian – once a year. Going over your credit report can give you an idea of whether you’re likely to be approved for an auto loan. Once you have the results, you can address any issues on your credit report that could lead to a higher interest rate or a rejection.

Set Your Budget

Once you’ve checked your credit score, it’s time to think about budgeting. Most experts recommend spending no more than 20 percent of your monthly income on your car payments. Calculate what that would look like for you, then compare the number with the price of the cars you’re considering. It’s also important to factor in other costs such as gas, insurance, repairs and maintenance when deciding if you can afford a certain vehicle.

Setting your budget ahead of time can also help you decide how much to put down on a car loan. Lenders often require a down payment, and it will lower your overall loan amount. Even putting five or ten percent down can save you interest in the long run.

Research Your Lender Options

Once you’ve got an idea of your budget and credit score, it’s time to start researching lenders. Credit unions, banks and online lenders all offer auto loans, so use comparison sites to compare rates. Having a good credit score can qualify you for special deals, such as lower interest rates, but even if you don’t have great credit, you may still be able to find a lender willing to work with you.

Consider Your Car Payment Terms

When taking out an auto loan, it’s important to consider the loan terms. Choose a loan length that works for you – shorter terms mean higher monthly payments, but you’ll pay less interest over the life of the loan. You should also find out what kind of payment options the lender offers, such as the ability to make biweekly payments instead of monthly payments. If you’re shopping for a used car, ask for a Vehicle History Report to make sure you’re not signing up for hidden problems.

Utilize Consumer Portfolio Services for Auto Financing

Consumer Portfolio Services is an independent auto lender providing customers with pre-owned financing solutions since 1991. Self-employed, subprime borrowers, and those who have experienced bankruptcy are welcomed, and CFP specializes in working with customers to secure the best loan available to fit their needs. With CPS, applicants can expect customer service support throughout the entire process.

Take Advantage of Dealer Financing Specials

If you plan to purchase your car from a dealership, ask about their financing specials. Dealers often have relationships with multiple lenders, so you may be able to qualify for incentives you wouldn’t get elsewhere. For example, you may get a better interest rate or zero-interest loans lasting several months. Make sure to shop around to get the best deal available.

Getting an auto loan doesn’t have to be stressful. By doing your research beforehand and understanding your own financial situation, you can make a sound decision on the best loan for you. Check your credit score, set a budget and compare lenders to get the ball rolling on your auto financing journey.