You might get the best rate from different fixed rate loans by comparing the deals offered by lenders. Doing the comparison however is most of the time complicated and not very easy. In order to do this correctly, you need to use the appropriate calculation and obtain the needed information such as the interest rates, the loan terms, and the down payments involved in each offer. However, you can make the comparison easier by using a loan aggregator. You can use popular loan aggregators such as Bankrate.com or LendingTree.com to help you out.
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Useful steps in finding the best auto loan rates
Being able to find the best auto loan rates allows you to save thousands of money from purchasing a vehicle. Doing the search for the best rates at present is more manage and involves lesser time due to the abundance of websites that assist you on how to do this. You can easily locate the best rates with just a few clicks of the mouse. Besides this, you can also apply some of the steps included in this article.
Step 1: Check the rates offered by the nearest banks
One of the effective ways to find the best auto loan rates is by checking the loans offered by the nearest banks. Banks usually offer more competitive rates compared to other lending institutions since they are involve in providing different types of loans.
In order to obtain the best rates offered for a car loan, it is advisable to do business with banks that you previously dealt with. They would probably offer you the best loan rates since you are one of their previous customers. In addition to this, you no longer need to develop a new relationship with this bank since you already have a record with them.
Step 2: Know your credit record
It is also important to know your existing credit record and current FICO score before going to lenders and apply for loans. This is because you would probably have an idea about the type of loans that you would qualify for. Always remember that a good credit holder qualifies to more type of loans compared to a bad credit holder. In addition to this, a good credit holder usually gets a lower interest rate and a bad credit holder obtains higher interest rates.
Step 3: Use online loan comparison tools
You can also make use of the websites that provide loan comparison tools. You only need to provide the site with the needed information about yourself and the available car loan rates. Through this, the site would provide you with the necessary information as to which of the available loans offer the best rate that suits your needs.
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 MyFico.com, “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.