Purchasing a vehicle is often a necessary expense but the experience can still be affordable. Unless you have the cash to pay for your new car or truck outright you will have to seek out financing. Fortunately, fast convenient ways to find the best car loan rates are available online now.
Auto loan rate-comparison websites help pinpoint lenders with the lowest APRs. Credit union car loan deals are often surprisingly affordable. Read ahead for valuable information on qualifying for the best auto financing rates today.
Do you want to know the truth behind getting the best car loan rates today? Qualifying for the lowest annual percentage rates (APRs) starts with you and your credit rating. If you have an A+ credit score it might only take a few clicks or phone calls to get an excellent low rate on your new car loan. If you have some issues with your credit and overall purchasing history you will first want to find ways to give your credit score a boost before applying for any loans.
When it is time to purchase a new vehicle, it is common to overlook the necessity of researching finance companies and APRs. Discovering deals on new cars or comparing the best-used car loan rates is sometimes overshadowed by the excitement of getting behind the wheel of a new automobile.
This is especially true if your previous car broke down or was totaled in an accident and you need a new vehicle fast. The APR on a car loan is the main factor affecting monthly payment amounts and loan terms, however. The higher your credit (FICO) score is when you apply, the friendlier the loan for which you qualify is likely to be. Before submitting any car loan applications, it is advisable to first take a thorough look at your credit report to see where you stand.
Between the AnnualCreditReport.com website and the U.S. Federal Trade Commission (FTC) you are able to view your entire credit history and FICO score from all three reporting bureaus (Equifax, Experian and TransUnion) for free once each year.
What’s more, you can make payments bi-monthly to increase your FICO score even faster. Perhaps consider some of these additional tips:
- Make payments on all accounts to avoid maxing out your credit limits.
- Make payments above the minimum required each month.
- Pay revolving debts down first.
- Take advantage of zero-interest balance transfer deals to reduce revolving account APRs.
- Purchase daily, weekly and monthly necessities on credit cards but pay them off in full each month.
You might discover debts reported in error. Removing these will increase your FICO score. Knowing your FICO score also gives you a target range and a reasonable timeframe to reach it if your score is lower than expected. If you have time to plan, make sure to pay all your bills on time and in full for six-to-twelve months before applying for a loan.