Best Car Loan Rates - Prime and Sub Prime Auto Lenders

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Auto Loan - Getting An Auto Loan With Bad Credit
You have found the car of your dreams, but you know your credit is not the greatest. You ask yourself, "How can I get an auto loan with bad credit?"

You are not alone. Thousands of people ask the same question everyday. Just because you have bad credit, does not mean you can not buy that car of your dreams. When considering bad credit auto loans, you can save yourself thousands of dolla... Read loans article



Home Loan - Important Tips
If you're getting ready to apply for your first home loan, you're going to need to understand the home loan basics.

When you go to apply for a home loan, you need to understand the terminology. Let's start with the most basic of terms.

1. Principal - The principal is simply the amount you borrow to move into the home of your desires. If you apply for a loan of $250,000, the... Read loans article



Best Car Loan Rates - Prime and Sub Prime Auto Lenders
The best car loan rates are out there if you search for them. Based on your credit past, you may find either a prime or sub prime auto lender is your best choice. The surest way to find the answer is to request free online loan quotes to narrow your choices.

The Differences Between Prime and Sub Prime Lenders

Prime and sub prime lenders differ in the types of loans they offer. Prime lenders offer A loans to those with credit scores of 650 or higher. Sub prime lenders provide loans to everyone else. Sometimes though, financing companies offer both types of financing.

Sub prime loans have higher rates and fees since the risk is higher for lenders. Reasonable lenders will only charge a couple of points higher for most types of loans.

Who Has The Best Rates?

The only way to find who has the best rates is to do your own comparison shopping. Depending on your credit score, you may be surprised who can offer you the most competitive package.

As important as low rates are, fees should also be considered. Fortunately the government made comparison shopping easy by requiring lenders to disclose the APR of any loan. The APR includes both closing costs and rates.

Find The Right Lender

You should start your car loan shopping online, not at the dealership. There are too many incentives for the salespeople for you to be sure you are getting the best deal.

Start with a car loan broker site that brings many lenders together. You can quickly access free quotes from there. Then follow up with other lenders.

And don't give permission for a lender to access your credit report unless you are pretty sure you want to go with their offer. Otherwise, you will find that multiple credit inquires will lower your score and hurt your loan application.

While there are no instant solutions to finding the best auto loan rates, online sites do make it faster. A couple of hours spent securing your vehicle financing will both save you money and make the car buying process easier.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.

View her recommended lenders for Car Finance Loans.

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Low Interest Rate Auto Loans - Getting a good rate with no credit

A low interest rate auto loan can help you establish a good payment history with a small secured loan. Even with no credit history, you can get low rates by using the following strategies.

Understanding Your Credit Profile

Even if you haven't used credit in the past, you still have a credit score. Your income, assets, and lack of debt are all positive factors. With enough resources, you may find that you have a good credit score and qualify for "A" loan rates.

Most people with no credit will have to turn to a sub prime lender for their first loan. Fortunately, auto loans are secured by the vehicle, so rates are lower than most other forms of credit.

Picking Your Strategy

The first and best strategy to find a low rate auto loan is to compare rates from several lending companies. Too often financing offered at the dealership is overpriced. Online lenders can offer you more options and better rates.

While smart shopping can help, having a co-signer with a good credit score will also improve your rates. The financing company will base their lending decisions based on the other person's score, not yours. This also gives you a chance to improve your credit history.

The third strategy is to refinance your car loan in the future, when your credit score improves. Establishing two years of good credit can usually help you qualify for low conventional rates.

Other Qualifying Factors

A 20% down payment will get your reasonable rates, but 50% can help you even more. With equity built into the car, lenders down grade the risk of the loan.

New cars bought from dealerships are also seen as a lower risk. They are less likely to need repairs or have other problems. However, you may find a better value with a used car in the classifieds.

Other Options If You Have Time

If you have a year or more before you need to purchase a car, start building your credit by opening a credit card account and creating a good payment history. In another six months, do the same with a new account. With a reliable credit history, you will soon be able to get the best rates on auto loans.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.

View her recommended lenders for Car Loan Online.


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Best Car Loan Rates - Prime and Sub Prime Auto Lenders
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