An
Online Car Loan Rate May Be The Best Rate
As I mentioned
earlier, getting your car financing set up through an online car
loan rate is a valuable tool for you.
It only takes a few
minutes, no application fees, and easy access. Even more importantly
you now have a number that the dealer must beat in order to earn
your business.
A nice advantage to have during the negotiating
process.
So, it is very possible for you to get the cheapest car
loan online. Even if you have bad credit there are online car loan
businesses such as
Driverloans.com
and
1-800 AUTO YES
that can help
you get your car loan.
Your
credit score is essentially a
number that is assigned to your credit history.
This number is
derived from many, many factors. The most obvious being your payment
history. But, this is only a part of what makes up your total score.
The higher the number the better your chances and the lower the
interest rate you will be able to get your loan for if approved.
With this in mind, if your credit score is less than 600 (which
wouldn't be a good number) and you are get turned down, don't keep
submitting credit applications and getting turned down.
This will
only continue to harm your score. One of pieces to that number is
how many times you apply for credit over a given period of time.
Keep in mind, the lower the credit score number means a greater
difficulty in getting approved and if approved, the higher the
interest rate of your loan will be.
Because of the
importance of your credit score and the amount of money in interest
rates that it costs you if your score slips, maintaining and
nurturing your credit is an ongoing process.
The time to begin
thinking about getting your credit in shape is not a few weeks
before you head out to try to finance a car!
And lately when you
hear about all these 0% to very low financing rates advertised and
marketed by manufacturers and dealerships, you can be sure the ONLY
way to qualify for these rates is if you credit is so spotless it
shines.
So, if you don't
know your credit score, now is the time to find out what your
FICO score is.
[../_global/adsense/02banner468x60pics.htm]
Don't
come to the realization, that you have a nick on your credit,
because a car loan you have applied for has been rejected.
In fact,
to your knowledge you may have excellent credit and have something
improperly reported that is harming your score. If so, you should
dispute the entry and get it cleaned up before you begin applying
for your car loan. This can take 60 days or even longer for the
discrepancy to be removed from your credit.
And don't assume
you have an exceptionally high credit score just because you always
make your credit and other monthly bill payments on time. This is
only one of a whole litany of factors used to arrive at a score.
Your overall
credit score and other information provided on your credit report
are things that potential lenders take into consideration when you
apply for a car loan. Such things as:
-
how many
accounts you have open (even if you don't use them, and if you
don't close them)
-
what are the
credit limits of those accounts (this represents potential debt
risk to a lending company)
-
what is your
debt to income ratio (I have seen six figure salaries get
rejected because this was too high)
-
how long
have you been at one address (iterant people tend to make
lenders nervous)
-
How new of a
credit user are you
-
What type of
job do you have and how long have you been there
So, to give your
best shot at getting a good online car loan rate you should first
get your credit in as good looking of shape as you possibly can.
-
Get and know
your
credit score
-
Close out
any old and/or dormant accounts that you have just lying around
on your credit report
-
Check for
and remove any information on your account that is not correct.
-
If you have
bills that have been charged off or in the process of, try to
negotiate with the creditor to remove from your credit. If you
have unpaid or charged off bills and don't take measures to
correct this, and you eventually do get a car loan, the interest
you will pay on this loan may actually end up costing your more
than if you would have just paid the bills.
|
