Payment History « 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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August 4, 2010

Getting The Best Auto Loan Rates With Your Credit History

Filed under: Finance — Tags: Auto Loan Lenders, Auto Loan Rates, Best Auto Loan Rates, Car Auto Loan, Car Auto Loans, Car Loan, Credit Purchases, Credit Report, Credit Score, Equifax, Experian, Interest Rate, Major Credit Bureaus, Massive Databases, Payment History — @ 11:16 pm

Jim Johnson asked:

It is very important to understand how your credit history affects the auto loan rates that you are able to qualify for, since not understanding the process can cost you significant amounts of money over the life of a typical car loan. So here is an explanation of how you can get the best auto loan rates by knowing all you can about your credit history. Let’s start out by understanding how your credit history is compiled.

There are three major credit bureaus that collect and store information about all of your credit purchases. They are Equifax, Experian, and Trans Union. Whenever you borrow money to buy something they are informed by your lenders on a regular basis about how much you borrowed and how diligent you have been on paying back that amount in the form of your monthly payments. All of this data is received by those three companies and stored in massive databases where it is packaged into an overall credit report, which is also called your credit history.

So if you are shopping for used car auto loans for instance, your prospective lenders will access that credit report and review it to determine how much risk they think will be presented by loaning you the amount that you need to buy the car you want. The number that most lenders usually refer to to get a quick and overall idea of how good your past credit history has been is called the credit score. It’s a calculation of several things including your payment history, the amount of outstanding debt you currently have, how far your credit history goes back in time, and so forth.

Obviously then, the better job you have done in paying all of your bills on time and in full, the better your overall score should be providing that you haven’t overloaded yourself with debt. When the auto loan lenders see your credit score, that enables them to decide what interest rate they will charge you for giving you a used car auto loan. The better your credit score, the better interest rate you get, and therefore the less money it costs you to get the loan.

One very important thing that you should also know is that you can get a copy of your credit score from each of the three credit bureaus and review it to be sure that it is indeed correct. Actually it is fairly common to find errors that have been made that are not in your favor, so it’s a good idea to regularly review your credit history to keep it up to date. If you find errors you can begin working with the credit bureaus to have them removed as soon as possible.

So if you want to get the best auto loan rates, you need to pay close attention to your credit history and guard it very carefully. If you review your current credit history every three months or so you should be able to stay up on any changes that will need to be made and can keep errors to a minimum. Then when you are ready to start shopping for used car auto loans you can get the best auto loan rates that are available and save lots of money.

Vincent

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July 9, 2010

Affordable Car Loans – Cheap Rates For New and Used Cars

Filed under: Finance — Tags: Bad Credit, Bad Risk, Beautiful, Best Choice, Books, Budget, Car Payment, Credit Score, Household, Insurance, New And Used Cars, New Automobile, New Cars, Payment History, Salesperson — @ 12:33 am

Tommy Hilligan asked:

Most Americans understand that we need to have car insurance for our vehicles. What most do not understand is that in order to gain access to a new or used vehicle, your credit has to be immaculate. You may find that your application is denied if you have missed just one payment in the past. Here are a few things to consider when looking for affordable car loans with a bad credit score.

Many people who have purchased vehicles know the routine. You first meet a salesperson out on the floor. They convince you to purchase a new or used vehicle. You follow them to their office and they have to do a check on your previous history. Depending upon this, you will either get the loan or you will not.

For those of us that do, we now have a beautiful new vehicle to look at in our driveway. We also have a payment to look forward to over the next few years. But for those of us that failed to receive funding, we may be wondering what we can do so that this does not happen ever again.

Before you ever walk into a dealership, you need to have an idea of how much you want to spend. You also need to know your budget and what percentage rate you’re willing to take for the life of the car payment. You then need to look at your budget for your entire household and see if getting that new automobile is really the best choice for you.

Now you need to look at how often you are making your minimum payments. If you have other debt that is virtually burying you financially, it is probably a good idea to stick with the auto that you have. If you can swing it, then it is time to look at your payment history.

Have you ever been late on any payment that you are making? If so, you need to increase your percentage rate by a couple points and also be prepared to be rejected when you go to the dealership. They do not want to have bad risk on their books and therefore if you are unable to pay your bills every month, you probably should not acquire a new source of debt.

Another thing to consider when looking for the best rates possible is to shop around and look for dealers that are desperate to sell. Some of them will ignore your credit score as long as it is not too bad. And if you think that you can make your payments based upon your monthly income, then getting that new or used car is probably a great decision.

The final tip in securing cheap percentages is through the art of negotiation. Never take the first offer presented. If you do, you are probably making a car salesman laughed all the way to the bank. But through tactful negotiation or bartering, you can lower the percentage points sometimes by half which will directly affect how much you will pay each and every month.

Finding affordable car loans is actually not that difficult as long as you have a decent credit rating and your monthly income, combined with your bills, shows a debt to income ratio that will make you a good candidate for driving away that new or used vehicle that you have always dreamed of.

Kathleen

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May 30, 2010

Be on Your Guard When Researching Refinancing Rates For Auto Loans

Filed under: Finance — Tags: Auto Appraisal, Auto Lenders, Auto Loan Rates, Banks, Calculators, Cash Options, Credit Rating, Decent Car, Interest Rate, Mileage, Payment History, Refinance Rates, Refinancing Loans, Refinancing Rates, Short Time — @ 5:20 pm

Peter Kirkham asked:

Many people will choose to refinance their auto loan within a very short time of acquiring their original auto loan.

This is often due to the high interest rates that new buyers or those with less than perfect credit will pay, in order to acquire a decent car.

This is usually a great way to re-establish a credit rating following a year or so of good payment history, thus affording you a better interest rate and far less tedious terms when you go for the refinance option.

In order to be prepared for a refinance auto loan, there are a few things that you might want to have at the ready.

Keep in mind that most vehicles lose a great percentage of their original value the moment they are driven off the lot, so you will definitely need to procure an auto appraisal and compare it to the amount of money that you still owe on your vehicle.

This will usually begin to match up by the second or third year of ownership, as long as you are careful to keep your mileage as low as possible and all maintenance up to date during this time.

Keep records of all the scheduled and unscheduled work that is performed on the vehicle.

Once the value of your vehicle matches up to or exceeds the amount that you currently owe, you will be ready to prepare the rest of your documentation and proceed with finding the lender that will serve you best.

It is also important to note that you will most likely not find a lender who will offer you cash options over and above the remaining balance on your vehicle. This is very common practice, so if you need extra funds, additional financing options will need to be put into place.

Online tools such as refinancing calculators and lender listing services can be the most welcome and convenient methods available to the public when searching for the best refinance auto loan rates.

Because lenders and banks know that their fellow lenders are just a click away these days, there is enough healthy competition to keep you vying for a great interest rate and an ideal set of closing terms.

Other than this, there are timing issues that need to be addressed on your end, as the first three years of a standard auto loan are spent paying primarily interest. In order to avoid doing this twice, try to refinance as soon as possible.

Make sure that you’re fully aware of all out of pocket expenses as well as an closing costs that may apply.

You can avoid most of these fees by choosing your lender carefully and examining everything that you are expected to agree to thoroughly.

Fine print and a lack of understanding on your part can lead to a deal gone wrong, so be your own best advocate when sourcing refinance auto loan rates.

Leslie

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May 29, 2010

Best Car Loan Rate – Finding Cheap Rates Online

Filed under: Finance — Tags: All Creditors, Auto Loans, Bad Credit Auto Loan, Best Car, Car Loan Rate, Car Loans, Car Rate, Credit Auto, Debt To Income Ratio, Loan Broker, Loan Brokers, Online Lenders, Payment History, Time Credit, Valuable Service — @ 10:53 pm

Carrie Reeder asked:

There are many ways to find the lowest car rate online. Today, many
lenders offer car loans for all credit types. Because of this, many smart
buyers are shopping around for the lowest rate before accepting an auto
loan offer. Having good credit makes it a little easier to secure low
rate financing. On the other hand, if you have a low credit score, it
may take a bit more effort on your part to find the cheapest rate.

What Contributes to a Low Rate Auto Loan?

Aside from comparing quotes from various lenders, other factors make
obtaining a low rate possible. For starters, individuals with a strong
credit history are more likely to receive offers with low rates. Never
underestimate the importance of establishing and maintaining a good
payment history with creditors. By following a few simple rules, you can
easily boost your three digit credit score.

If you are determined to get a low rate auto loan, make sure that all
creditors receive payments on time. Skipped or missed payments will
decrease your credit score by a few points. If this becomes a habitual
problem, your credit score will suffer.

Moreover, avoid applying for many lines of credits within a short
period of time. Credit inquiries are equally damaging. Lastly, reduce debts.
Having too much debt can actually decrease your credit score.
Additionally, it counts against your debt-to-income ratio, which may make it
difficult to qualify for a more expensive vehicle.

Use an Online Auto Loan Broker

To find the cheapest auto loan rate, you must be willing to search for
them. Several lenders advertise low rate auto loans. These loans are
generally reserved for individuals with superb credit ratings. However,
it is possible to get a good rate with perfect, fair, even bad credit.

Auto loan brokers provide a valuable service. If you are having trouble
finding a good lender, think about using a broker. Brokers have
dealings with many lenders and are familiar with various loans. Additionally,
brokers provide a unique service by matching you with up to four
different lenders. This is great for comparing and contrasting different
offers.

Frederick

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October 11, 2009

Refinance For A Better Auto Loan Rate

Filed under: Personal Finance — Tags: Auto Loan Rate, Bankruptcy, Credit History, Credit Report, Credit Score, Debts, Due Accounts, Harder Time, Interest Rate, Interest Rates, Late Payments, Loans, Necessary Decisions, Payment History, Percentage Points — @ 10:10 pm

Tony Beb asked:

Most of the time people will not refinance a loan when they could save money with refinancing. Many times people can be scared or think they have bad credit without knowing. People with bad credit have a harder time obtaining a lower interest rate on a new loan. Generally lenders will offer better rates for people with better credit. If your credit is good your rate should be good. There are many lenders so searching for the right one is a possibility to get a better rate.

On the high side of interest rates someone with a bad credit score will pay around 18%. This person could have filed a bankruptcy or was past due on any credit account. They could have had a lot of late payments, collections and other negative credit items. On the other side people with a good credit score will pay around 5%.

If your credit is pretty bad you might have a limited amount of options. It is always a good idea to check your credit every few months to see if your rating has improved. Time will be your greatest asset to getting a better loan. In general it is pretty tough to get a low interest rate with a bad credit score but you might be within a few percentage points.

Obtain a credit report to view all of your credit history. If you had bad credit in the beginning you might have raised your credit score by paying on time. The overall amount of debt and payment history compared to how much money you make are the biggest factors with your credit score The opposite would be if your credit has become worse. Viewing your credit report should help you to make necessary decisions before applying for a refinance.

You should resolve any past due accounts. Your credit report will show any negative items. If you reduce debts and resolve any outstanding issues your credit can be repaired with time. The best thing to remember is pay your bills on time each month.

Look for loans from a different lender. It is a good idea to look for multiple sources of financing. Lenders will have different rates and you will benefit the most by comparing more than one. Anyone can find a loan regardless of credit history. Online auto brokers can be beneficial to help find the best loan at the best rate. If you find your quote is not going to help you can always find a co-signer.

Marie

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