A Low Rate Auto Loan Is Your Privilege As A Good Borrower
Low rate auto loan, how can you get one? Getting a loan with the best terms and low finance
charges can't be wishful thinking. The bottom line is, you get what you deserve.
If you are responsible with your credit, you will get low APR (Annual Percentage Rate). Consequently, your monthly payments will be lower and lenders will charge you less for using their money.
A borrower who is always late on the other hand will always get an auto loan with high APRs and consequently, he will have to shell out more money for his monthly payments. At the end of his loan, he would have been charged more by the lender. It's as simple as that. There is no politics to it, it's just the way it is in the finance world.
Loan Term (months)
$10,000 to $24,999
$25,000 to $49,999
$50,000 to $100,000
Your good (or bad) credit impacts you whether you want to buy a car,
a house, or a sofa set.
A bad credit will even cause you to be denied an apartment or car rental. Having a good credit is a crucial asset to be able to function well in a civilized society.
To be able to obtain a low rate auto loan each time you want to buy a new car, a used car, get a car refinance loan, or lease a car is empowering to an individual.
Saving a bundle each time we pay off our loan is a hallmark of success. You should be proud to have good credit score which translates into good credit.
The table below shows how rates jump if your FICO score falls below 620. Look at how dramatic is the difference in APRs between a FICO score of 720-850 and 500-589: 10 points. That translates to a lot more finance charges being levied to a borrower with poor credit.
Used Car Loan Avg. Rates
The table below is for New Auto Loan Average APR.
Borrowers with excellent credit should take advantage of their capacity to always get a low rate auto
loan. A good credit is the same as cash. You put more money in your pocket. There's a saying: "A penny saved is a penny earned". But in your case, it's a ton of pennies saved.
Having an excellent credit allows you to take advantage of an occasional 0% or really low interest offers from dealers and manufacturers. You should take advantage of any low rate auto loan offers that come your way. You also have the leverage to get truly low interest car loans from banks, credit unions, car dealership finance, and auto loan online lenders.