Posts tagged ‘interest rate’

Car buyers guide in getting the lowest car loan rates

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Categories: Auto Loan Rates
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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.

Knowing where your loan rates fall based on average car loan rates

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Average car loan rates differ from one state to another. In case you are planning to buy a new or used car and in search for financing, you need to determine the amount that other borrowers are paying for their interest rates. By knowing this, you can make a comparison of what they pay and the amount that you would be paying in case you obtain a loan. Through this, you are able to determine whether your loan rates fall on the average or not. To further help you determine where your loan rates fall this article provides some useful information about the average car loan rates.

Average car loan rates per state

The national average car loan rates at present are estimated to be around 7%. However, this rate varies from one state to another. For example, you would get a new car loan amounting to $20,000 the interest rate tied to it in different states are the following:

  • Illinois- 6.07%
  • Philadelphia- 7.71%
  • Los Angeles- 7.54%
  • Cleveland- 6.19%

Although these are the average rate for car loans on the above mentioned states, you also need to bear in mind that the loan rates appropriate for you are still based on your personal details as well as your financial stability.

Knowing where you fall

In case you are getting an interest rate not similar to the national average car loan rates of 7%, you are either a good or a bad credit holder. Once the interest rates tied to the loans that are offered to you are lower than 7% this simply means that you have a good credit record. If the rates offered to you are higher than 7% it simply means that your credit record is not that impressive.

Borrowers with FICO scores of about 700 or higher are qualified to obtain loans with interest rates of 3% to 4% or even qualify for 0% interest loans offered by some lenders out there. Individuals with bad credit record on the other hand are probably paying more than the average rate of 7%.

How to obtain low car loan rates

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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 AnnualCreditReport.com. 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 CapitalOneAutoFinance.com, Bankrate.com and LendingTree.com.
  • 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 steps in comparing fixed rate loans for cars

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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.

Useful tips to obtain an excellent auto car loan rate

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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

Useful steps in finding the best auto loan rates

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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.

How to obtain the most affordable auto loan APR

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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

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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.

1. Interest.com

One of the most dependable sources of information about the current car loan rate is interest.com. 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, interest.com 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.

2. Bankrate.com

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

How to calculate new car loan rates

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Calculating new car loan rates is most of the time difficult because there are many factors involved in it. Knowing the exact amount needed for the repayment of the vehicle is also difficult. You still need to understand how the Annual Percentage Rate (APR) and the Annual Percentage Yield (APY) affects the loan rates for a new vehicle despite the abundance of online car loan calculators. This article explains the APR and APY to help you get a better idea on how the new car loan rates are calculated.

Annual Percentage Rate (APR)

The Annual Percentage Rate is a popular concept used by lenders when you inquire about the interest rates of the loans they offer. This may sound common but only few car buyers know what this concept really means.

Useful steps to calculate interest of an Auto loan

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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

How to obtain the lowest auto loan rates

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Obtaining low auto loan rate is one of the greatest goals that most car buyers want to achieve. This is because lower loan rates allow them to save money from buying a brand new or used car. The savings that they would obtain might be used for other expenses. However, getting the best rates from a car loan needs extensive research and careful planning. In order to help you obtain better loan rates, this article listed some of the useful ways below.

1. Shop for the best loan offer

One of the best ways to obtain the best rates for a car loan is shopping around for lenders that offer affordable deals. You can start looking around by requesting for loan quotes from banks, credit unions, and other credit institutions. You can also check the rates offered by online lenders. Compare all of the loan payments they offer as well as the interest rate and choose the most manageable and easy to pay off.

2. Join a credit union

Credit unions usually offer lower loan rates especially when you become a member of union. Look upon the membership requirements and try assessing whether becoming a member would provide you with what you need from a car loan. Besides this, credit unions usually offer loyalty benefits for their members.

3. Avoid being an impulse buyer

You should avoid being an impulse buyer in order to obtain lower car loan rates. Bear in mind that it is very easy for you to step on the dealership

Top Interest Rate Factors You Should Watch Out For

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The interest rate factors affect the amount paid for the interest of a car loan. This determines the appropriate interest rate placed on the loan you secure. It is important to take note of concepts affecting the interest rate, since it could help you save money when you buy a car or complicate your credit condition in the event that you failed to pay for the loan