You’re thinking about a new vehicle. You may be looking for an auto, a truck, a trade vehicle, or possibly something different. As always, the search starts with questions. Not just about which vehicle to choose – but perhaps more importantly, how to make sure you get the most for your money, and how to get the most money made available to you. How to increase borrowing power and how to maximise borrowing capacity are questions all buyers should be asking.
Fido Finance Can Help!
We work with you and our lending partners to find the best match and the best financing for your situation. Everyone is different, and everyone’s ‘best solution’ is different, too. We make it easy to get started, with vehicle finance that will be easy to live with. Call us on 13 FIDO or contact us online. With Fido Finance, you can even get pre-approved with no obligation – just fill out the application form!
Let’s take a look at how to increase borrowing power and how to maximise borrowing capacity.
Reduce Your Expenditures
Take a hard look at everything you spend money on each month. It’s easy to roll along spending more than you really need to – even if your expenditures are quite affordable, you can sometimes save a surprising amount each month just by second-guessing purchases and financial commitments. This is well worth the effort in its own right, and the money you don’t spend can go toward the vehicle you want.
Bring Your Bills Up to Date
Are you sometimes a bit late paying regular bills? It can be easy to miss an odd payment date. Lenders will look for consistent bills payments, because soon enough you might have their auto loan as one of them. Make a schedule of due dates, and make sure you pay everything on time.
Save For the Down Payment
The time to start saving is now. Even if you can only save a little at first, making a consistent effort to store away cash can show lenders you’re serious about affording that new vehicle. Once you get in the habit, it becomes a natural thing to think of saving first.
Consider Sharing the Loan
It may be possible and advantageous for you to get a co-signer on your auto loan. This is particularly true for young people who are not yet making their highest potential income. If someone is willing to co-sign the loan with you, your combined incomes and credit profiles will be considered by lenders, and this will almost always be how to increase borrowing power.
Spruce Up Your Credit Score
Lenders will always look at your credit score when considering your loan application. This is one of their most important metrics. Could it be better? It is always a good idea to keep track of your credit score, and you’ll need to do what you can to improve it if it’s lagging. Find out what obligations you may have missed out on – are you able to contact the creditors and arrange payment? Always ask for them to remove their negative from your credit report once you have paid.
Make More Money
If only it were that easy! When you look at the big picture, though, there may be ways available to you to increase your income. Side jobs, extra hours, even changing jobs for better pay. This can be a long-term effort, but it can also pay off big. Don’t think it’s impossible – consider this option with an open mind. You might wind up very pleasantly surprised, and it will certainly be how to increase borrowing power.
