Chris Goodman asked: Regardless of your credit history, everyone is looking for the lowest possible rate on a car loan. There are many factors that go into determining the ultimate rate you will be changed by the lender/dealer, but your credit score is one of the largest factors. In addition to score, lenders are looking at actual history in profile to determine your “credit worthiness” or better said how you have paid your bills in the past. They are also looking at the collateral you are purchasing and the down payment you are providing.
Since credit score is the main factor a lender looks at, here is a breakdown of how Experian, one of the largest credit reporting agencies, breaks down the different credit categories:
Super Prime = 740 and above
Prime = 680-739
Non-Prime = 620-679
Sub-Prime = 550-619
Deep Sub-Prime = below 550
Your credit category will determine how easy or hard it is for you to get a car loan. If you fall into the Sub Prime or Deep Sub Prime tiers, you are having the hardest time finding a car loan. Those whose credit falls in the top three are still getting financing all be it harder and more expensive than it was a year ago.
The internet opens up many options for consumers will all types of credit. There are benefits to going online and securing your auto financing regardless of the credit category you are currently in. Some of those benefits include data security, the ease of applying from the comfort of your own home, better negotiation power with the dealer since if you get your car loan before heading to the dealership, you are viewed as a cash buyer.
You owe it to yourself to explore the internet as an option for your car finance needs. Many lenders offer finance products for the purchase of a vehicle from a dealer, products allowing you to refinance your existing loan and some even give you the option to finance a vehicle you purchase from another individual. Regardless, getting a car loan online will save you time and money.
Gregory
