-Choosing an Auto Loan
-How Much Should I Borrow?
-Buying Your Child
-Car Loan Terms
-Saving $ While Driving
-Buying & Selling
CAR LOANS AND CREDIT SCORES
One of the biggest factors in determining auto loan
approval is your
credit score. In fact, lenders have
become advanced in the way they use
assess potential borrowers. This is good news and bad
The upside is that there is a very large market for
auto loans for people with bad credit. However,
if you have bad credit, you are going to pay more in
loan interest rates.
The downside is that the lending process has become very
informal, and more reliant on mathematical equations when
determining whether or loan approval should be granted
and what interest rates should be assigned.
Learn more about what credit scores are.
All the different lenders are going use a different
formula for determining auto loan approval and rates.
Different lenders are going to also have a different
labeling what credit type you are. Therefore every lender is likely going to offer you
To ensure that you receive the best auto loan rates
possible, we suggest you
get a copy of your credit report at least once a year.
This will help guarantee that there are no errors on your
report that can adversely effect the rates you receive. If
there are errors, you can
dispute them. You can see a
sample credit report dispute letter.
More Credit Advice:
There are many
factors that influence auto loan rates. Knowing what
these factors are will help you prepare for and ensure
your receive the best rates for your
how credit influences mortgages.