website, auto loans are one of your biggest expenses, next only to home purchases or your children's education loans. Your finance charges are a reflection of your loan rates and it all depends in how you manage your credit. The better you are in managing your credit, the better chance of you getting the best auto loan deals out there. It also allows you to obtain from online funding sites an instant auto loan which is flexible as well as saves you money in finance charges.
Credit scores are a form of financial profiling lenders use to predict the statistical likelihood of a buyer not keeping up with his payments. It is also based on things like your income, employment history, length of time at your residence, buying patterns, history of credit applications, repayment of loans, revolving debt (credit card balances, etc.), record of defaults, bankruptcy proceedings, even presence of adverse public records such as suits, liens, wage attachments, and others. Your credit score is compiled and distributed by any or all of the three major credit reporting agencies: Experian, Equifax and TransUnion.
If you take care of your credit and pay on time, your FICO score (Fair Isaac Corporation, founded in 1956 by engineer Bill Fair and mathematician Earl Isaac), a measure of credit risk that are the most used credit scores in the world, will be higher. If you don't take care of your credit and are habitually late, your FICO score will be lower. Maintaining a good credit score is paramount in maintaining a good financial health for you and your family.
Your FICO score is reflected as a number ranging from a low of 300 to 850 (perfect credit). The higher your score, the better your credit -- and the lower your interest rate should be. If your interest rate is higher, that means lenders charge you more to use their money, if they agree to lend to you at all. It costs you money, good amounts of money, to have bad credit. Getting a loan for car is predicated in you having good credit.
The table below illustrates why it's so important to have good credit. It should be your goal to improve credit score at all times - this should be your priority. Notice how rates suddenly jump for FICO scores of below 660 (11.316%) and
below 620 (15.009%). Those rates compare favorably with high interest credit cards. High FICO scores allow you instant auto loan for your loan for car. Lenders will simply be happy to lend you their money.
If you've been duped into believing that you have a blemished credit when in fact you don't, take out a car refinance loan ASAP. If your FICO score is at least 690, you should qualify for a rate of at least 7%.
Loan for car, whether new or used, must be your priority during your car buying. Look for sources of financing first that are available for you. You can borrow money from a relative, or your credit union, even your bank. If it's not possible to get an auto financing loan that way, you can get a quick car loan
from several online auto lenders. A loan for car from these reputable auto financing sites could be as easy as 1-2-3!
, these are auto financing sites online and they can give you better rates than car dealership financing.
Some advantages of online auto financing websites. Remember that it's easy to obtain a loan for car there.
Approvals are usually within an hour during business hours.
You don't pay hidden fees, points, or prepayment penalties.
Online lenders FedEx your check the next day after approval.
When you buy the car, just give them a bank draft from your online lender.
You can also get a private party auto loan from the above online car lenders, also called a person-to-person loan. Regardless of whether you have less than perfect credit, you can obtain even a poor credit auto loan. And if you meet certain requirements, some lenders are also willing to extend a no credit car loan. This kind of loan is good for you because this loan builds your credit worthiness.
Obtaining a quick car loan is easy even if you have less than perfect credit. If you have excellent credit, so much the better. You can readily obtain an auto financing loan if you take good care of your credit. And happily for you, securing a low rate auto loan is easy; your financial situation is enviable in the eyes of somebody whose credit score is in the cellar.
Learn more about buying a new car or a used car. Buying either a new car or a used one has its advantages but be informed. Investigate the pricing of the car as well as the features and options available for each. Go visit a few car pricing websites: Edmunds.com
and Yahoo! Autos
. You can even avoid haggling with car salesmen by buying your car online directly from CarsDirect.com.
The information you get from them will be useful if you decide to visit a car dealer or if you buy from a private party. Make a printout of the pricing, features and options of your car of choice and use that information as your reference point to haggle with the car dealer or an individual seller. Learn more about haggling with car dealers and the importance of knowing about MSRPs.
A few more tips about obtaining loan for car:
Put a large down payment if possible. With a 20% down a buyer should begin to see positive
equity about two years into a four-year loan, assuming the car's kept in good shape.
Get the shortest loan term possible. Aim for a loan for car with the shortest payback time you can comfortably handle. While monthly payments can be reduced by stretching them out over more time, you end up paying more in the long run. But with a lower interest rate, a smaller loan, or a shorter term, you can reduce your total cash outlay.
Avoid car dealer financing. Dealers are out to make the most money possible and car loan financing is one of the many ways they can line their pockets with your money. Remember that car loan financing is available in plenty of sources so don't believe car dealerships if they claim that they have the best rates out there.