Are you looking to finance a new vehicle? Getting a new car means more than having a healthy balance in your online American Express banking account. Vehicles are some of the most substantial investments you'll make, and most people need loans to finance the purchase.

Here are a few tips to help you get the best terms and interest rates before shopping.

Keep an Eye on Your Credit Score

The first thing you should do is check your credit score. Your score will impact your interest rate and how much you can borrow. Fortunately, it's easy to stay updated on changes to your score. There are countless free reporting sites, and you can get your score through your online American Express banking portal.

Once you know your score, take steps to improve it. The higher the score, the better loan terms you'll get. Pay close attention to credit utilization and on-time payments. In many cases, paying off other debts will increase your score, giving you more options.

Shop Around for Lenders

Don't assume you have to go with the first offer. Get quotes from multiple lenders and explore your options. The best approach is to look at different types of lenders.

For example, you can get quotes from large national banks, small credit unions, and online lenders. Many auto dealers will also offer in-house financing. Shop around and see what rates and terms you qualify for before officially applying.

Get Preapproved

When you see what's available from different lenders, you're pre-qualifying. The process involves a soft credit pull, which usually doesn't affect your score.

After pre-qualification, you can seek preapproval. Preapproval gathers more credit information, resulting in a hard pull. Only get preapproval from a small number of lenders. Doing too many in a short period will negatively impact your credit score.

Preapproval gives you more negotiating power and protects you from marked-up rates. The rates you get are closer to what you'll have after the final application and approval. As a result, you can start budgeting and shopping for the right vehicle.

Author Resource:-

Emily Clarke writes about cash advances, overdraft protection & finance apps. You can find her thoughts at FDIC insured app blog.