Category Archives: Credit & Auto Loans

How Your Credit Score Affects Your Car Loan Rate

Credit Score And Your Car Loan Rate

If you are thinking about purchasing a car, you will need to find out about your own credit score as this can have an effect on the out come of obtaining an auto loan.  Since you already know you will need some funds to buy an automobile, you will need to get auto financing – and you will want to know just how your credit score affects your car loan  rate.

Your score can consist of several factors and one of the most important is your payment history.   Any late payments or missed payments you have had will certainly have an effect on your rating and thus your credit score.  Also, all of your credit card balances are taken into consideration whenever loans are being estimated.  There are a few other things as well that are taken used in determining whether or not you can obtain any auto loan, like checking and saving accounts and any personal loans or any mortgage payments.

One good reason why having a good history of credit is so important is that it will certainly determine any eligibility you have for a car loan.  This can also have an effect on the interest rate you will be charges to secure your loan.   Your ability to pay off the car loan is evaluated along with any money that you may have borrowed and now need to pay back.

Any loan interest rate will be dependent upon your history of your credit.  Interest rates are lower for the people who have a good history of credit.  In most cases, people who have an average or a low credit rating, will need to pay a higher car loan rate towards the interest on a loan.

Whenever you go and apply for auto loans with any dealership, they use a credit report.  Then according to your credit score, the dealer will make a lending decision and interest rate based on your score.  They usually mark up the interest rate so consider using a direct lender and finance outside of the car buying efforts.  The thing to remember is that all dealerships will charge you a higher rate  of interest on any auto loan.

The credit rating that you have will make all the difference in whether you can be approved for your auto loan and what the interest rate will be.  It may be worthwhile to check out car buying tips to help save you the most cash or tips to improve your credit.  It is highly recommended that you try to keep any credit you have in good condition by paying your bills on time.  The score of any credit report will always be the deciding factor in determining your eligibility for a car loan and the rate that you will pay.

Tips and Tools:
Car Buying Tips

Auto Loan Calculator

Tips to Improve Your Credit

30 Second Video

The Rules for a Credit Report have been Expanded

As we all know, the more you know about your credit, the better position you will be in when you actually need it.  Staying informed is not that difficult and it can result in substantial savings when you borrow, if you know where you stand.

As of January 2011, new federal rules were initiated where creditors must notify consumers when their credit report has been used to provide them credit on less-favorable terms than other consumers.  These are what they call “risk-based pricing” rules under the Fair and Accurate Credit Transactions Act of 2003.  Risk-based pricing occurs when a lender offers a different interest rate and different loan terms based upon their credit history and creditworthiness.  That means that if you have been notified, you can obtain a copy of your credit report for FREE.  This way you can immediately review your credit report for accuracy – important because things do happen that create an error reporting situation.

Here is a new twist – instead of providing the risk-based pricing notices, a creditor may decide to provide you, when you apply for credit, (such as an auto loan or an auto refinance loan), with a free credit score and information about that score.  This expands the existing requirement that mortgage lenders must give consumers the credit scores they used in whether or not they decided to grant you a loan.  Right now there is a credit score disclosure requirement in FACTA, but it will only apply when you are trying to finance a home.  Under final rules issued in 2009 by the Federal Reserve Board and FTC, credit card issuers and other lenders must tell you when they’ve been granted credit on worse terms than other consumers, based on their credit report or on a credit score.

With risk-based pricing, if a lender came back and offered you less favorable terms for an auto loan because of your lower credit score, you were not provided a notice of that.  It was not considered an adverse action of you accepted their offer.  Now if you get credit granted on less favorable terms, and they are using risk based pricing, they will have to tell you that you are getting a higher interest rate because of your credit history.  So, let’s face it, awareness is important when it come to your credit and now you will know when you are getting a higher price as a result of your credit score and your credit history.  That’s the first step in getting you to correct it and improve it so that you save money when you need to apply for credit.

Tips and Tools:
Car Buying Tips

Auto Loan Calculator

Tips to Improve Your Credit

30 Second Video

How To Buy Your Auto Lease Out and Own the Car

An auto lease can be a great deal.  By leasing a vehicle, you can gain access to a brand new high quality car to use on a regular basis without paying a large sum of money out of your pocket.  Some people even like the vehicles they lease enough to purchase them before the lease expires or at the end of their lease term.  If you are interested in purchasing the vehicle you are leasing, you should look into an auto lease buyout loan online to make the entire process as simple and as fast as it can possibly be.

By using online resources to get the lease buyout loan you need for your purchase of an auto lease buyout, you can easily access the capital you need in just a matter of minutes.  There are many sites you can utilize for this process, but there are some sites that are better than others in this industry.

The best sites you can use are businesses that let you compare multiple offerings from different lenders.  Look for things on the website that say, “up to 4 lenders” as an example.  These businesses can help you find the very best rates and the best overall deals available at any given moment.

Your first step should be the step of finding one of these businesses that let you compare multiple lenders at one time.  Once you have found one of these businesses online, you are ready to start the application process.

The application process is very simple too.  Simply create your account, then enter some basic information about yourself and enter the type of loan you would like to acquire to complete the application.  As we have been discussing, Auto Lease Buyout is what you are looking for.  Once you click submit, you will be given multiple offers to review.

Now that you know how to get an auto lease buyout loan online, you can see that the process of buying your leased vehicle could not be easier.  Once you have decided that you would like to buy your car, you should go to a site that lets you compare multiple offers at one time.  By using these sites, you can be certain that you are getting the best deal available to you right now.
Tips and Tools:
Car Buying Tips     Auto Loan Calculator     Tips to Improve Your Credit

How Your Credit Score Affects Your Car Loan Rate

 

If you are thinking about purchasing a car, you will need to find out about your own credit score as this can have an effect on the out come of obtaining an auto loan. Since you already know you will need some funds to buy an automobile, you need auto financing and you will want to know just how your credit score affects your car loan rate.

Your score can consist of several factors and one is the payment history you have had, and just how any late payments or missed payments you may have had, will certainly have an affect on the rating of credit. Also all of the credit card balances too are taken into consideration whenever loans are determined. There are a few other things as well that are taken into determining whether or not you can obtain any auto loan, like checking and saving accounts and also any personal loans and/or any mortgage payments too.

One good reason why having a good history of credit is so important is that it will certainly determine any eligibility you shall have for a car loan. This can also have an effect on the interest rate as well towards any money that you may have borrowed and need to pay back.

In regard to your score, any loan interest rate will no doubt have a lot to do with the history of your credit. Interest rates are available for the people who that have a good history of credit. And in most cases even the ones who have an average or a low credit rating will need to pay a higher car loan rate towards the interest on a loan.

Whenever you go and apply for auto loans with any dealership, a credit report shall be looked at and then according to the report of your credit score, the dealer will make a consultation and from there along with this score, will then determine what interest rate it is that you may need to be paying. Also one other important thing to remember is that all dealerships will charge you higher rates in regard to the rate of interest on any auto loan.

The credit rating that you have will make all the difference in whether you can be approved of obtaining your loan and what the interest rate will be and also whether or not you will even get an auto loan.  It may be worthwhile to check out car buying tips to help save you the most cash or tips to improve your credit.  So it is highly recommended that you try to keep any credit you have in good condition. The score of any credit will always be the deciding factor in determining your eligibility for a car loan.

Other helpful tools:  auto loan calculator, Free Auto Buying Guide

Factors That Influence Auto Loan Interest Rates

When applying for any type of car loan, there are all sorts of different factors that will affect the interest rates on it.  So what exactly are the main factors that influence auto loan interest rates?

Well, your credit rating will be extremely important.  If you have demonstrated a poor financial background then this will show on your credit report and you will be seen as more of a risk from any auto lender.  As a result, the car loan interest rates that you have to pay will always be higher.  A good credit rating will help you to achieve much more affordable and competitive auto loan interest rates.

The year of the vehicle is also important.  In general used cars loans will have higher interest rates than new cars.  Essentially, auto loans are secured loans with the vehicle as collateral, and as such the older the car is, the higher the interest rates on it are likely to be.

The length of the auto loan is certainly important as well, and interest rates can vary significantly depending upon how long the auto loan is taken out for.  In general, the longer the loan is, the higher the interest rate will be, and therefore many people choose to take a shorter term car loan if financially viable.

The amount financed is another factor that will influence the interest rates on your car loan.  Most lenders will have a minimum amount to finance guideline, usually no lower than $5000.  If any auto loan is below this amount they will have trouble trying to make any money off it, and if they were to approve a loan amount under their minimum it would usually have the highest possible interest rates attached to it.

Finally, state guidelines will also play a part in any car loan that you want.  Many states have maximum cap rules which will prevent them from charging any auto loan rate they would like.

Need more info? Check out “Car Buying Tips

Tips and Tools:

Auto Loan Calculator

Tips to Improve Your Credit

30 Second Video