Credit Score « auto loan rates

December 25, 2010

Bad Credit Car Loans – 3 Tips on Getting a Reasonable Interest Rate

Filed under: Finance — Tags: Car Loan With Bad Credit, Consumer Debt, Credit Accounts, Credit Car, Credit History, Credit Score, Credit Worthiness, Creditors, Downside, High Interest Rate, Interest Rate Reduction, Loan Lenders, Loan With Bad Credit, Payment History, Percentage Points — @ 6:53 am

Carrie Reeder asked:

Obtaining a car loan with bad credit is achievable. The downside to purchasing a car with bad credit is that you may receive a high interest rate. On average, individuals with poor credit can expect to pay about 2 or 3 percentage points higher. Higher interest rates may increase you monthly payment by up to $150. Those who can afford to pay a higher monthly payment may be willing to purchase a car with a high rate. Nonetheless, there are ways to improve your chances of getting a reasonable interest rate.

Fix Your Credit Problems

Before approving a loan, lenders review credit reports to determine credit worthiness. Credit reports reveal a lot of information regarding your credit history. Do you pay your bills on time? Have you filed bankruptcy? How much debt do you have? Based on this information, lenders will approve or deny credit. If you have a low credit rating, try and improve your score before applying for a car loan. It takes time to improve your credit score, but it is worth the effort. Improving score involves paying bills on time, reducing credit card and consumer debt, etc. If you have recently filed bankruptcy, consider opening two or three new credit accounts to rebuild credit and establish a good payment history with creditors.

Save for a Down Payment

Having a down payment is a great way to negotiate a lower interest rate on a new car. The average down payment varies. However, a down payment of as little as $1000 can make a big difference. An interest rate reduction may save you thousands throughout the life of the loan. If you are hoping for a very low monthly payment, consider a large down payment. Not only will you get a low interest rate, but you are able to pay off the loan balance quicker.

Compare Fees and Rates

Many people receive auto financing through a dealership. However, it is smart to obtain at least three quotes. The best way to obtain multiple quotes for a car loan is to apply for a loan with an auto loan broker. Brokers are the convenient way to compare lenders. Simply complete an online information request form, and auto loan brokers will negotiate with several lenders to provide you the best financing. After you receive quotes from lenders, compare their rates, fees, and terms. Select the lender with the best financing option.

Roberto

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December 16, 2010

All You Need to Know About Car Loan Interest Rates

Filed under: Finance — Tags: Arrears, Auto Loan, Car Loan Interest Rates, Car Loans, Circumstance, Credit Score, Financial Crunch, Lenders, Loan Interest Rates, Loan Option, Many A Time, New Car Loan, People, Poor Credit, Risk — @ 7:53 pm

Kalvin Jason asked:

Gone are the days when cars were bought just for luxury. Now, it has come out of its earlier label of luxury and it has become a basic necessity. No matter whether you are professional or not, but you must have realized the necessity of a vehicle. At the same time, financial crunch, many a time, restrain people to buy it. Under such circumstance, one can always go for car loan option. Car loans are available for all kinds of vehicles; be it new or used. One can avail these loans either in a secured form or in an unsecured form. However, various factors are there and on the basis of these factors, the interest rate of these options varies. These are as follows:

o It is seen that the interest rate of a secured car loan becomes cheaper than the unsecured one. Obviously, the reason is easily understandable. With a secured loan option, the security of the borrowers covers the risk of the loan. And therefore, the possibility of a lower interest rate is brighter.

o The interest rate of a used car loan is higher than the interest rate of a new car loan.

o With a good credit score, a borrower can always make the interest rate of a car loan pocket-soothing by negotiating. Similarly, if you have poor credit problems like CCJ, IVA, arrears, default and bankruptcy, then the interest rate of your car loan may be higher.

o Above all, some tricks are there, which will always help you to make the interest rate of your auto loan cheaper. Collect various loan quotes offered by different lenders and then compare them. Obviously, you will get a better deal on any kind of auto loan.

So, now you can easily buy a car of your choice by availing a car loan. And as far as the Interest rate is concerned, the aforesaid information will definitely help you a lot.

Karen

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November 27, 2010

Auto Loans – Get a Low Interest Rate on a New or Used Car

Filed under: Finance — Tags: Auto Loan, Auto Loans, Automobile Loan, Best Interest, Car Buyers, Credit Balances, Credit Cards, Credit Rating, Credit Score, Interest Rate Reduction, Loan Brokers, Loan Denial, Maximum Limit, Thousands Of Dollars, Types Of Borrowers — @ 6:34 pm

Carrie Reeder asked:

Getting the best interest rate for your automobile loan may require effort on your part. Many car buyers seek a low rate. A low interest rate may conclude whether a particular car is affordable. In fact, an interest rate reduction of 2% – 3% may lower your monthly car payment by $50, which will save you thousands of dollars on a 60 month term. Here are a few tips to help you get the lowest interest rate possible.

Save For a Down Payment

One way to obtain a low interest rate on an auto loan is to have a down payment. On average, the typical down payment for an automobile is 10% or $1,000. A down payment not only guarantees a lower interest rate, but you will also receive a lower monthly payment. This may allow you to pay off the balance in less time.

Improve Credit Rating

Your credit score is a huge factor in determining the interest rate for a new or used vehicle. There are two types of borrowers: prime and sub prime. Prime borrowers are individuals with a good or fair credit rating. Prime borrowers generally have a credit score of at least 620 – 660. These applicants are good candidates for low interest rates.

Sub prime borrowers, which include individuals with a credit score of less than 620, can expect to pay a higher interest rate. To qualify as a prime borrower, strive to improve your credit score. Avoid missed payments, and pay all bills before the due date.

Moreover, reduce your debt to income ratio. If possible, your credit balances should be no more than 50% of your limit. Keeping credit cards at the maximum limit will make lenders doubt your ability to repay the loan. The outcome is a higher interest rate or loan denial.

Compares Rates Online

To obtain the lowest interest rate on a new or used car, you must compare rates. Request a quote from online auto loan brokers. Ideally, you should compare rates from at least three or four different lenders. Auto loan brokers make the process quick and convenient.

Once your request for online quotes is submitted, with 24 hours you will receive an email with quotes from several lenders. Individuals with poor credit may also obtain online quotes from sub prime auto lenders. After comparing rates, fees, and interest rates, submit an official application with the lender who offers the best deal.

Elsie

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November 25, 2010

Auto Loan Interest Rates Just Went Up – Industry Worried

Filed under: Finance — Tags: Auto Dealership, Auto Industry, Auto Loan Interest Rates, Auto Loan Rates, Chief Economist, Credit Score, Estimated Sales, Industry Analyst, Industry Analysts, Loan Interest Rates, Million Cars, Paul Taylor, S Sales, Slow Downs, Vehicle Loans — @ 10:45 pm

Lance Winslow asked:

Most auto industry analysts knew it was coming, higher interest rates for new cars, indeed most consumers in the market for a new car probably also considered it. The subprime fallout has hit the US Auto Industry and auto loan rates just went up. Are you worried? Well if you are in the auto industry or even in the after market auto industry then you know this is indeed serious for your business or livelihood.

If you have a high credit score and golden credit then it may not be so bad, yet the truth is that most US consumers have some blemishes on their credit reports, whether it is theirs or from an Identity Theft criminal event. If your credit is not perfect and you think you are going to get a good interest rate or good deal on a loan – think again.

In fact, for the not so great credit folks you may find it hard to get a loan at all. What does this mean for auto dealers? Well one industry analyst stated that the estimated sales for 2007 should have been 16.5 million cars sold, but now most are revising it to 15.9 to 16.1 million cars. That is a huge difference of between 400,000 to 600,000 fewer cars. It means layoffs, factory slow downs and less profit. It will hurt the industry. Automotive News Magazine stated:

NADA chief economist Paul Taylor predicted that U.S. sales of new cars and light trucks this year would roughly equal the 2006 mark of 16.5 million. Now Taylor predicts 2007 sales could dip as low as 16.1 million units. At the same time, some lenders have raised interest rates on vehicle loans to subprime buyers. Dealers in markets where subprime mortgage problems are most acute report slumping sales at their stores. US Automakers will be hurt worst as they are struggling to regain market share from the advancing Toyota and Honda Brands, worse the first Chinese Autos will hit the first Chinese Auto Dealership in the US, in New Jersey by mid-2008. The question is how much more pounding can these companies take and what will this do to consumer confidence as we dip into the next downward trend in the US Business Cycle. Think on this – we are. Sincerely, Lance.

Clarence

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November 14, 2010

What is the Average Car Loan Rate of Interest For People With Bad Credit?

Filed under: Finance — Tags: Auto Financing, Car Loan Rates, Credit Score, Establishments, Improving Your Credit, Interest Rate, Looking To Buy A Car, Lowest Car Loan, People With Bad Credit, Possibilities, Rate Of Interest, State Laws, Stipulations, Truthfulness, Variables — @ 9:48 am

Jason Lanier asked:

Many people that are looking to buy a car and have bad credit, really don’t know what to expect in regards to the interest rate that they will be asked to pay (or TOLD to pay by some dealers). Average car loan rates for people with good credit can be anywhere from 4% to 7% depending on the market and the source that you use for financing.

When you have bad credit, average car loan rates can vary dramatically. This is where finding a good source for your auto financing is crucial.

For example, if you use a car lot that has in house financing, you can expect to pay upwards of 20% interest and up to 28%, depending on your state of residence. Average interest rates charged by these establishments used to be unregulated and eventually state laws had to come in to keep things from getting out of hand.

In all truthfulness, there is no such thing as an average rate for a car loan when it comes to people that have bad credit. There are too many variables and too many stipulations and conditions that determine the rate. Getting the lowest rate for a car loan when you have a low credit score is determined more by the lending source that you select, over all other factors.

You can expect to pay a higher rate than someone that has excellent credit… that is to be expected. You should not however, accept any offer at a rate of over 12% unless you have thoroughly researched and explored other possibilities first. There’s nothing worse than having bad credit and having high payments… that makes getting ahead and improving your credit that much more difficult.

To obtain the lowest car loan rate on a car when you have bad credit, you should look into using reputable, legitimate sources for online car loans. Lending services vary one from another. Some are reputable and some are not. Be sure of what you’re doing before you jump in and sign a contract.

Rick

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October 14, 2010

Questions about paying off auto loan?

Filed under: Personal Finance — Tags: 15 Months, 401k, Auto Loan, Car Loan, Credit Score, Interest Rate, Retirement Account — @ 7:38 am

confusedmuffin asked:

I own $5000 in my car loan, and the interest rate is 8.25%, I think there are still 15 months to go. I am wondering should I pay it off or not. I have invested fully on my 401k and other retirement account, and still have plenty left in my savings account(enough for living off for one year). I am wondering should i pay it off or still pay month to month, about 100 dollars interest per month. If i pay it off, will that improve my credit score as well?

Gilbert

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October 8, 2010

I want to refinance my auto loan?

Filed under: Credit — Tags: Auto Loan, Credit Score, Interest Rate, Lot, Nissan, Nissan Rogue, Refinance Auto, Refinance Car, Refinance Loan — @ 5:34 pm

redrose 11 asked:

About a year ago, I bought nissan rogue 2008 and took a loan from them of 25000 with 7.5% interest rate. At that time my credit was not so good. People have been telling me that its a lot. Now my credit score is 720. Can you tell me which bank can give me low interest rate if i refinance my car?
I’ll appreciate your responses.
Thanks

Melanie

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August 28, 2010

Should I go on an auto loan as the primary or co signer if my co signer has better credit?

Filed under: Credit — Tags: Auto Loan, Bad Credit, Co Signer, Credit Score, Loans — @ 1:21 am

Justcurious asked:

I am trying to get an auto loan. I have about a 600 credit score and nothing really bad on my credit but nothing really high in an amount. I have a co signer who has about a 740 credit score but not really any high loans on their credit either.. I have great income. Its kinda like my co signer has the good credit and i have the great income. Can we submit the auto loan with my co sogner has the primary and myself as the secondary so we can get the best rate and stay away from a high apr? Possibly even a lease.

Bernice

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