Posts tagged ‘credit score’

Bailout Offers Auto Loan Relief

If you have less than stellar credit GMAC has a deal for you.

At the start of the Great Recession, General Motors and Chrysler were in desperate need of a federal bailout. GM made best use of the Troubled Asset Relief funds the government made available to them by passing savings on to customers. At the beginning of 2008 few buyers were willing to plunk down money for a new GM vehicle. The few who did had credit ratings that were less than excellent making them too high a risk for GMAC the financing arm of General Motors. The manufacturer made this money available to consumers in the form of an improved loan structure. They lowered their minimum credit score requirement making more loans available to more buyers.

Credit Scores

As the recession took hold GMAC was forced to increase its credit score requirement from 621 to 700, which made buying a new car an option only for a select few consumers. The release of two federal bailout packages freed up enough capital that GMAC was able to reduce their credit rating requirement to the heretofore mentioned 621.

GMAC President Bill Muir said, “We will continue to employ responsible credit standards, but will be able to relax the constraints we put in place a few months ago due to the credit crisis. We will immediately put our renewed access to capital to use to facilitate the purchase of cars and trucks in the U.S.”

Zero Interest

GMAC did not stop there in its effort to finance more cars, however. They also started a very aggressive zero percent interest auto loan promotion that ran for a full week. Despite this effort year over year sales were still down more than 22 percent, but this was not as bad as they anticipated before the zero percent interest deal was offered.

Now, if your credit rating is just 621 or higher you can take a share of the federal bailout money used to support the American automotive industry.

The Troubled Asset Relief fund money was released in October of 2009. As result of this, GMAC received $6 billion to be used to support the industry. By offering low interest financing options and reducing its credit rating requirement GMAC made its best attempts to encourage automobile buying and restore the industry.

“A” for Effort

Their efforts were among the best efforts to restore some calm to the troubled automotive sales market. It also served to restore confidence in the American car buying consumer by making the purchase of a new car a little bit easier for everyone.

Great Deals for Good Credit

If you have been waiting for just the right time to buy a new automobile, wait no more. Your time is now.

Buyers with excellent credit stand the best chance of getting the best deal right now. At no other time in the history of the automobile industry have better deals been available.

General Motors, Chrysler and Ford are seeing a slight rebound in sales, sure, but there are still plenty of great deals to be had. Dealerships are still struggling to move cars off the lot. Inventories are still too high and the sales people are starving to make a deal.

Automobile manufacturers are offering deep rebates and big discounts to buyers with a great credit score. If your credit score is in the 600-700 range, it is very likely the dealership will bend over backward to put you behind the wheel of a new vehicle. If you are still struggling to get your credit score above 500 there probably isn

Useful tips in getting the lowest new car loan interest rate

Most car buyers are concerned about new car loan interest rates before they purchase their vehicles. The interest rate is important because it helps determine the actual amount needed to pay for the vehicle. Although purchasing a car on cash basis is a good option, most buyers prefer to purchase through a loan since a car depreciates faster each year.

Factors affecting the interest rates

There are several factors affecting the interest rate of the loan. New car interest loans for example are based on the prime rate from the federal government. This rate may rise and fall depending on the situation of the economy of the nation. Due to this, getting the lowest interest rate for new car loans should be accompanied by proper research of the existing prime rate. In case you are planning to purchase a new car through a loan, you should patiently wait for the prime rate to go down. It is on this situation where the banks and other lenders offer low interest rates for the loans they provide.

In addition to this, the loan term also affects the interest rate of the loan. Long term loans have higher interest rates compared to short term loans. Given these factors, you should watch out for the prime rate to go down and go for a short term loan in order to obtain the lowest new car loan interest rate.

Provide a higher down payment

Providing a higher down payment for a car loan reduces the monthly payments involved as well as encourages the lender to provide lower interest rate. Through this you would be paying lower monthly premiums and get the chance to pay the loan off in a shorter period.

Most new car dealers also offer 0% interest rates to car buyers. However, these deals usually require higher down payments of up to 50% or 70% of the car

Car buyers guide in getting the lowest car loan rates

Buying a vehicle is an exciting experience but getting the lowest car loan rates to finance the vehicle would further make the experience more exciting. However, finding the right car is most of the time difficult since there are many car models offered on the market. The good thing is that getting the best car loan rate is easy to obtain. This article provides some tips that you can consider before going to the dealership.

Check your credit report

The best way for you to increase the chances of getting the best loan rates is checking your credit report. You need to examine the entries included in it to see if each of these is correct. This is important since most lenders base their calculations of the interest rates of your loans with the credit report. Do not hesitate to correct the wrong entries included on the report. You can also provide justifications of these incorrect entries when you go to the lender to apply for a loan.

In case the report shows that your credit score is low, make sure to improve this by looking upon your unpaid premiums. Paying your old dues improves your credit score therefore making you a lesser risk customer. This will not only affect the interest rate you get form auto loans but also the other loans that you wish to obtain.

Search for more financing deals

Searching for more financing deals helps you choose the offer that has the best rates included in it. You can do these by looking upon the available loan deals offered online. Using the internet also allows you to determine the offers solely offered for online applicants. These loan offers most of the time involve lower rates compared to those offered by banks and other credit institutions.

You can also check the loan rates offered by banks, credit unions, and dealerships. Compare their rates with those that you obtained from the internet.

New car loan rates: How to obtain instant approval

Checking the new car loan rates offered by most lenders is important before you go shopping for a new vehicle. Doing this allows you to select the best rate that is available and therefore enables you to save extra money from the car buying process. In order to guide you, this article provides the 5 basic requirements in getting lower loan rates.

Good credit record

Getting lower loan rates is easy when your credit record is good. This serves as the primary basis used by lenders in deciding the interest rate that they would place on the loan you would qualify for. Lenders usually look upon the number of financial obligations that you have while you are trying to obtain another loan. This allows them to assess your capability to pay the new loan that you would obtain from them.

In order to obtain the best loan rates, you need to keep your credit score good by paying the loans that you have. It is also important to limit the number of loans that you are getting since this might cause your credit score to lower down in case you fail to make prompt payments to each one of these.

Personal assets

Most of the time, having some personal assets that can be used as collateral allows you to obtain a lower interest rate for a car loan. Providing collateral provides security to lenders that you will not run away from your financial obligation. Due to this, lenders would view you as a lesser financial risk therefore allows you to have lower car loan interest.

Proper documents

You can also get lower loan rate by providing the necessary documents such as proof of employment, proof of identity, and even the copy of your credit report. This would also convince the lender that you are serious in getting a loan. In addition to this, providing the proper documents allows the processing of the loan easier.

Higher down payment

Providing a higher down payment reduces the amount you owe from lenders. The down payment you provide is deducted from the amount you owe from lenders. The interest rate then is calculated based on the amount you still need to pay. The higher down payment you provide therefore results to lower the interest rate and monthly payments.

New car loan rates: Useful advice in getting lower auto loan payments

When you are planning to buy a new car, you should include the existing new car loan rates as one of the things that need to be considered. This is important because the loan rate that you would be getting has significant impacts on the expenses involved in making the vehicle purchase. It is therefore necessary for you to obtain the best loan rates in order to spend lesser amounts on a car loan and avoid getting stuck in a tight financial situation. This article provides you with some tips on how to get the best auto loan deal with lower payments.

Secure a copy of your current credit report

Before you decide to submit an application for new car loan you need to secure the latest copy of your credit record. You can request a free copy of this from credit agencies such as Experian, Equifax, and TransUnion once a year. Examine the entries included on the report for possible errors and make sure that all of entries written on it are correct. In case there are errors, file a complaint on each of the credit agencies. Wait for the error to be corrected before submitting your application for a car loan.

Doing these things are important since your credit report serves as the most important basis for calculating the interest rate of the car loan that is suited to your financial condition. Always bear in mind that a good credit record allows you to obtain lower loan rates while bad credit record results to higher interest.

Know your credit score

You also need to know your credit score before you apply for a new car loan. Just like the credit report, the credit score is used by lenders in calculating the interest rates applicable for you. A good credit score means lower interest while bad credit scores most of the time results to higher interest.

Prioritize loans from prime lenders

Most car buyers prioritize loans provided by prime lenders for the rates of these loans are most of the time lower than what other types of lenders are offering.

How to obtain low car loan rates

Obtaining a low car loan rate from lenders is easier if you are qualified and by following some of the simple guidelines included in this article.

Tips to obtain low car loan rates

  • Before searching for low car loan rates make sure to obtain the latest copy of your credit report from one of the three leading credit reporting agencies. The credit reporting agencies are Experian, Equifax and Trans Union. These agencies would provide you with free credit report once each year. You can obtain this report from Bear in mind that in order to qualify for lower car loan rates your credit score should be 680 or even higher.
  • Bear in mind you that you would obtain a lower car loan rate if you choose a loan with shorter loan term. For example, your interest rate would be lower in case you choose to finance your vehicle within 36 months instead of financing it within 48 months.
  • You might also reduce your loan rate if you would allow the financing company to withdraw the amount of your car payment automatically each month. Although this might not be a huge discount, it allows you to save hundreds of dollars in the long run.
  • Try to qualify for a loan from a prime lender instead of getting it from a sub-prime lender. Prime lenders usually offer lower car loan rates compared to sub-prime lenders. Start your search by checking reputable websites such as, and
  • In case you want to obtain financing from a dealer do not hesitate to negotiate. Make sure to about the existing car dealership incentives, discounts and rebates. Since most dealers are motivated by the idea of being able to sell the car, you might end up paying lesser amounts in the long run by negotiating.
  • Try to provide a down payment of at least 20 percent of the vehicle

Useful tips to obtain an excellent auto car loan rate

Excellent auto car loan rate is offered by lenders to qualified applicants only. In case you are qualified for the requirements they place in order to get these rates, you should take advantage of this. Excellent car loan rates allows you to save money from the car purchase and at the same time helps you pay the loan off on time. However, you also need to consider some tips in obtaining these rates. This article provides you with the useful tips to help you secure what you been looking for from a loan deal. These tips are as follows:

1. Know your credit history

Knowing your credit history as well as the credit score you possess helps you to determine whether you qualify to obtain the best auto car loan rates or not. Lenders most of the time use the loan applicant

How to obtain the most affordable auto loan APR

When you are planning to buy a car, you would probably use an auto loan to finance this. This simply means you wish to obtain the most affordable auto loan APR that is available. Using this article we would try to look for the best rates that suit your needs.

Check your credit score

Always expect that the rates suited for you would change from time to time due to the credit score you own. You can determine your credit score by requesting a copy of your credit report from one of the credit reporting companies, but best way to find out is by applying for some loans. If your score is low, lenders would offer you a higher APR. However, if your score is high, you can obtain a lower APR.
After checking your credit score, shop around for loan offers and try to determine which of these are applicable for you. Request for loan quotes from different lenders and make short list of the rates to avoid missing some rates that might be suitable to your financial situation.

Determine how much you can afford

After checking your credit score and knowing the rates of the loan offered, try to figure out how much you can afford. Compare this to the loan rates you included in the shortlist. Take note of the affordable ones try to ask about the usual APR tied to these loans. Through, this you would identify which of these has the lowest APR.

Choose the loan with the lowest APR

After knowing how much you can afford for a loan, choose the offer with the most affordable APR. Try asking if having a co-signer with better credit record would help reduce the interest rate of the loan.
After choosing the loan with the lowest APR, try to request for a calculation of the payments involved. By doing this, you would determine the amount of payments involved and you would be able to prepare for these payments every month until you are able to pay the entire loan balance off.

Useful tips in checking the current car loan rates

Knowing the current car loan rates available in your present location is important. It allows you to have a clear idea on the amount that you would paying in case you obtain a loan to finance your new or used car purchase. This is also important since interest rates placed on loans vary from one place to another. Besides this, your credit score as well as the loan terms have greater effects on the amount
You pay each month.

Knowing the current loan rates for cars might be confusing and a bit hard if you have no idea where to look for it. However, this old problem is resolved by using the internet. This article provides you with specific sites where you could check the latest car loan rates and these are written below.


One of the most dependable sources of information about the current car loan rate is It has been providing the most accurate interest rate for car loans since 1994. The site also provides updated interest rate since it monitors the day to day activities that are happening on the car sales industry.

In addition to this, allows you to make a localized search of the rates in your exact area. All you need to do is provide your current state and city. However, to make your search more convenient, you can use the zip code in doing the localized search.


Another source of information when it comes to current car loan rates is This site first emerged as

Useful steps to calculate interest of an Auto loan

You need to calculate the interest of an auto loan in order determine whether you pay more on the interest or not. This is important since even a cheap car could eventually cost more in case you failed to choose a loan with an affordable interest rate tied to it. In order to calculate the amount that would go to the loan

Factors used by lenders to calculate car loan interest rates

There are many factors that most lenders use in calculating car loan interest rates. This makes the interest rates one of the aspects of a car loan that is difficult to understand. However, you can somehow obtain a rough estimate of your car loan rate by knowing some of the factors used in the calculation. This article provides some of the factors used in the calculation. This includes the following:

Credit history

The borrower

What’s My FICO Score?

In the process of obtaining any loan, the lenders are going to check your FICO Score.

How will this application impact my Credit Score?

There is alot of concern out there that by shopping around for the best price on car financing will hurt your credit. That is untrue. According to, “most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score.” The lenders know that you aren’t going to take all the car loans you apply for, and you shouldn’t be punished for doing your homework to find the best rate available for you. That should actually be considered a good thing. This time period for loan shopping and how it is considered 1 inquiry is typically 3o days.

Free Credit Score and Report

There are many places to get a credit report, but unfortunately, that only shows you your credit history. Lenders will definitely look at your credit report, but more importantly, they will want to know what your Credit Score is. Our partner is offering that valuable Free Credit Score you should be looking for, in addition to a self credit improvement feature.