Finance Questions To Ask

What's My Credit Rating?

Your credit rating is a number that represents your creditworthiness, or how risky you appear to lenders. The score ranges from 300 to 850, and you can check it by signing up with Credit Karma or by visiting www.annualcreditreport.com. Credit ratings are determined by your payment history, the age of your credit history, how much of your credit you're using, and the types of debt you have (for example, a mortgage vs. credit card debt), among other things. To improve your credit rating, set up automatic payments, check your score regularly (and report any errors), and avoid using more than 30 percent of your credit availability.

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What Interest Rate Can I Get?

Shopping for financing at a dealership is one of the best ways to find the lowest interest rates possible. Interest rates are a fee charged by lenders for borrowing money, which is a major way banks and credit unions earn income. Dealerships are less reliant on interest as a source of income, which means they're often more willing to offer lower rates. Plus, dealerships frequently have special deals on financing for those with little to no credit. If you're shopping at Amistad Motors, you can get pre-qualified for credit here.

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What's My Budget?

The last piece of the puzzle is budgeting properly to ensure that you can make monthly payments — and save for a down payment. Before you start shopping, make a budget so you're aware of what you can realistically afford. In addition to the cost of the car plus interest, you also need to account for insurance, maintenance, and fuel costs. If possible, aim for a down payment of 10 to 20 percent of the car's sticker price, plus monthly payments that are no more than 15 percent of your take-home pay.