Final answer:
Annabelle is likely to be approved for an auto loan if she finances a new car through her bank. This loan will have its interest rate and monthly payment amounts influenced by her credit history, and the bank may require collateral to secure the loan.
Step-by-step explanation:
When Annabelle is considering buying a new car and financing it through her bank, the type of loan she will most likely get approved for is an auto loan. An auto loan is a financing option specifically meant for purchasing vehicles. Upon approval, Annabelle's credit history will play a significant role in determining the interest rate and monthly payment amounts. She must think about the length of the loan, such as a 60-month term, and how much she can afford to pay each month. In addition, banks will require information about Annabelle's income sources and might conduct a credit check. They might also ask for collateral, which could be the car itself, to secure the loan.
Before deciding to take an auto loan, it's crucial for her to consider her budget constraints, interest rates, loan terms, and additional costs, such as insurance, which are required by law. A good practice is to aim for a loan amount that is within her budget to avoid financial strain. By making a substantial down payment and possibly choosing a shorter loan term, Annabelle can save on interest and become debt-free sooner.