Auto Loan Rates – How To Obtain Great Rates On Auto Loans

Driving a new car entails added monthly expenses, but great auto loan rates can help save you dollars on the monthly payable installments. You might know the amounts you have to pay for down payments and EMI, but did you give interest rates a thought? Actually, it is the interest rate that determines amount payable for down payments and installments. Therefore, each buyer must invest a little more effort in searching for good rates before searching for good model of cars. Until and unless you find satisfactory rates by which you can save thousands of dollars on your payment, suspend your car purchase plan.

What Makes Lenders Offer You Lower Interest Rates?

If you are ready to pay a substantial amount of down payment then lenders are likely to offer you lower rates. When lenders find that you have already invested a significant amount on your car, they understand that you are likely to repay the debt on time. If the buyers show lower credit risk, then lenders provide car loan quote with lower auto loan rates. There are other scenarios when lenders are found to reduce the interest rates on cheap car loans. Often car loan companies, dealerships or car manufacturers, in a bid to sell cars, come up with promotional schemes like cash refund schemes, little or no interest schemes on loans. Such schemes offer great cash saving interest rates. The little or no interest rates options are the best scheme amongst these promotional schemes.

But, before you opt for schemes or promotional options, look to strengthening your credit score. Your credit score decides the auto loan rates you might be eligible for. Credit score states data on payment history of consumers. This is why lenders check out credit reports to find out whether the intended buyer has liability of any previous outstanding debts or not. When a person projects no or a lower amount of unpaid debts, he is given higher scores. People with such higher credit score get better rates of interest than those with lower credit status. People with poor credit status too can buy a car with bad credit auto loans, however, these loans tend to charge higher rates.

Since credit report determines auto loan rates, experts advise consumers to collect a copy of their credit report from credit reporting agencies. To receive an accurate credit report, trust reputed credit reporting agencies like TransUnion, Equifax or Experian. You can request these agencies for a detailed copy of your credit report every 12 months. Here’s a tip. Do not apply for any type of credit for at least last six months if you are looking for low auto loan rates. Instead, think of clearing outstanding debts sooner to improve your credit history. You must target to pay back the debts those charger higher interest rates, like credit card debts. A low debt level means you are in a better position to repay the loans, hence, you will be entitled to receive better auto loan rate quotes.

Free Money Saving Auto and Home Loan Tips

Free Auto Loan Tips

The following tips should help increase your chances of getting a car loan at a better rate.

Tip #1 – If you just started a job (recently graduated from college) then wait 6 months to apply for your car loan.

Tip #2 – If you have currently have bad credit then repair it before applying for an auto loan.

Tip #3 – If you’ve recently moved then wait until you have lived at your new address for 6 months before applying for a loan.

Tips #4 – If you have had a previous auto loan or home mortgage on your credit report then your chances for a new loan improve greatly.

Tip #5 – Try and pay off all of your credit card balances or at least lower them. You may want to consider finding the best debt consolidation loans to erase all of your credit card bills. The bottom line is don’t keep a high debt load or credit card balances.

Tip #6 – You must have a stable job or occupation.

Tip #7 – Other examples of credit extended to you should appear on your credit report. Verify this with a quick and easy online credit report. Also avoid charge off’s on your credit report.

Tip #8 – If you’ve filed bankruptcy before then you should wait 3-4 years before trying to get an auto loan.

Free Home Loan Tips

Tip #1 – Make Bi-Monthly Payments: Instead of paying your mortgage with one monthly payment switch to paying half of your loan payment every 2 weeks. The savings comes from the 26 half payments you make which add up to 13 monthly payments versus the regular 12 payments you would normally make in a year. The end result is you save a large sum of money on the interest owed and you’ll own your home a lot sooner!

Tip #2 – Choose a 15 year mortgage instead of a 30 year mortgage: You’ll end up with a higher monthly payment but in the long run you also save tens of thousands of dollars in interest charges, especially if you shop for the best home loans you can afford.

Tip #3 – Mortgage Refinancing: Currently this is the most popular trend. You refinance your mortgage if you can get a rate that is at least one percentage point lower than your existing mortgage rate and plan to keep the new mortgage for several years or more.

Tip #4 – Buy down the rate: The seller or builder, or through innovative pricing, can help you buy down your mortgage rate for one, two, or three years.

Tip #5 – Consider an adjustable-rate mortgage (ARM): If you think you will be in your house for less then 5 years then perhaps you should consider an ARM. An adjustable-rate mortgage (ARM) starts with a considerably lower interest rate, but then adjusts every year. This type of loan moves a little bit of the risk away from the lender, and the lender rewards you with a lower rate. Usually these mortgages are capped to rise not more than two percent in any year, and not more than five or six percent for the life of the loan for your protection.