August 28th, 2009
raju79
StillCurious asked:
I heard that comparing auto loans before shopping for a car is a prudent thing to do. But I’ve also heard that every time you apply for a loan your credit rating is negatively affected. What’s the truth?
Posted in Credit
Tags: Auto Loan, Credit Rating, Truth
August 7th, 2009
raju79
jimbob66 asked:
I recently applied for an auto loan to start building some credit. I have the money to pay it off right away, but I was waiting to start building my credit. Is there any benefit to taking months to pay it off or is just having a loan enough to build credit? Is there a good amount of months to wait to pay it off?
Posted in Credit
Tags: Auto Loan, Build Credit, Build My Credit
March 12th, 2009
raju79
Carrie Reeder asked:
Cheap car loans are essentially auto loans that consist of a low rate. For many people, this is a primary concern. Low interest rates equal lower monthly payments. Hence, car buyers are able to afford more. Individuals with a high credit score may qualify for a low rate auto loan. Yet, it is possible to obtain a good rate with average or bad credit. Here are a few tips to help you secure a cheap car loan.
Monitor Your Credit Rating
Do not enter the car buying process blindly. For the most part, anyone can qualify for a used or new car loan. Automobiles secure the loan. Thus, if you default, the lender may repossess the car and resell it. Nonetheless, having a few credit blemishes will result in a higher interest rate. Average car rates are about 6%. But, they can climb as high as 18%
If you are contemplating financing a new or used vehicle, check your credit beforehand. Raising your score by twenty or thirty points make a major difference. Moreover, paying two percentage points more on a car loan may increase your monthly payments by $50.
To get the lowest rate possible, improve your credit before applying for a loan. Simple tactics such as paying down credit card balances, avoiding late payments, and limiting credit inquiries can increase your total score. This is important because applicants with higher scores obtain better finance packages.
Establish Credit Beforehand or Get a Co-signer
Unfortunately, applicants with no credit history have a difficult time securing a low rate auto loan. To determine credit worthiness, lenders must assess your credit history. If you do not have any previous creditors, auto lenders are uncertain of your willingness to repay the loan.
To improve your odds of getting approved, attempt to get a credit card before applying for an auto loan. For about six months, maintain regular payments and keep a low balance. When applying for an auto loan, your credit report will reflect a good credit history, which may qualify you for a cheap car loan.
If you are in a hurry to obtain a loan, a co-signer may be able to help. To qualify for a cheap car loan, co-signers must be at least 18-years-old and have good credit.
Posted in Finance
Tags: Auto Loan, Auto Loans, Car Rates
