Clinching The Best Deal - Lower Interest Rates
Andrina James

by Andrina James
December 4, 2007

Planning to apply for car loans? What will be the monthly payments? What about the down payment? What would be the operative interest rates? Interest rates can either save or cost you thousands of dollars. Hence these FAQs have to be answered before going ahead with the car loans.

Online Calculations

There are online car loans calculator available to determine the loan amount, term of repayment and the interest rates. The prospective buyer should compare different principal amounts, interest rates, and numbers of years to find an affordable monthly payment. This would be helpful in choosing the desired car type at a suitable rate.

FICO Score And Car Loans

If a car loan is planned, the buyer should avoid any other loan for the next 6 months to one year, as the FICO would go down. Every time a loan is applied, and each time a loan request is made, the FICO score suffers. Higher FICO scores lead to lower interest rates.

Credit Report From Credit Bureaus

FICO scores can be obtained from the credit bureaus (Equifax, Experian and TransUnion). Lenders fix the interest rate based on these credit reports. The information in the report should be accurate. Any incorrect information in the report should be informed to the bureaus immediately.

Negative Credit Information And Bankruptcy

The surety of repaying the amount by the buyer would certainly lead to better interest rates. Yet, negative information and previous instances of bankruptcy car loan will lead to disproval of car loans, or might end up in a higher interest rate. Still, don’t worry for there are also dealerships that help irrespective of bad credit by providing no credit auto loan.

Insurance Coverage

Whenever the car is damaged, insurance can get the money back, provided the lender has given a full insurance coverage. This helps you to save money as you do not have to spend money on repairing a car which is of no use. The insurance details can be obtained from the car insurance company with the details of the car such as year, make, and model of the car.

Hidden Charges

The automobile loan should be manageable along with other debt repayments. The car would involve not only the interest and car price but also overhead charges, which will be a surprise to the customer if he is not prepared. Hence it is always advisable to keep some money in stored in the kitty while buying a car. Affordability to repay should be the deciding factor before going in for car loans.

The interest rates can either save or cost thousands of dollars. Higher Fair Issac & Co score (FICO) makes lower interest on car loans. Multiple requests for credit and previous credits are to be avoided before applying for car loans. A secured loan will definitely end up in lower interest rates though it cannot be got for no credit auto loan or a bankruptcy car loan.

4 comments

  1. 現在建築式™ // June 12, 2009 at 5:57 AM  

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  2. 50stateautoloan // September 12, 2012 at 5:37 AM  
    This comment has been removed by the author.
  3. 50stateautoloan // September 12, 2012 at 5:38 AM  

    Its really good things and information middle class family or whom can't afford a car.

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  4. Joe Christian // October 7, 2012 at 11:29 PM  

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