Posts tagged ‘loans for bad credit’

Average Car Loan APR: Knowing if you have a good rate

When you are searching for different car financing options it is necessary to obtain the accurate average car loan APR. This is important because you would know the possible interest rate that you might be paying in case you get a car loan. Besides this, you must also bear in mind that the interest rate is affected by different factors such as the credit score.

Since the credit score is a significant factor that lenders consider in calculating the interest rate it is advisable that you obtain a copy of your credit score before searching for lenders. You need to examine the information written on it and try to determine if there are errors in it. Check your credit score if it is good or bad. A credit score of 720 or higher means that you are qualified for great financing options. In case you have a higher credit score most banks would provide you with 4%interest rate for a new car loan and lower than 5% for a used car loan.

Obtaining the loan that suits your needs

Before going to any dealer to purchase a new or used car, make sure that you have done an extensive research. This would help you in negotiating with lenders to get a better financing deal. Since most dealers would offer rates that are higher than what the bank are offering, you need to use the information you have learned about the car you wish to buy while negotiating.

The average auto loan APR

Lenders usually use your income, credit score, and other factors to calculate the interest rate offered to you. However, most banks and other lenders would most of the time provide an average interest rate of 7% for new cars and 7.72% interest for used cars. There are also lenders that offer zero percent financing deals.

How to obtain new car loan rates with bad credit

In terms of car loan rates, bad credit is the greatest issue that makes loan application difficult. Many lenders as well as banks are most of the time hesitant in lending money to loan applicants with poor credit history since they view these clients as high risks and customers that are not so reliable. In addition to this, individuals with bad credit history and are now capable of improving their financial situation are also experiencing a hard time in getting a new car loan. This article provides a compilation of advice and tips on how to obtain new car loan rates and car loans for individuals with history of negative credit

Common requirements in applying for a new car loan

In order to apply for a new car loan despite the negative credit reputation you need to meet some of the basic requirements that most lenders ask for. These requirements are important in assessing the customer