Getting a low rate auto loan

Author: Alexander Anderson

Article:
Auto loans are the only way to purchase a dream car for many car
buyers. With the enormous number of auto lenders on the market
people have a broad choice. On the other hand, a wide range of
options should not mislead you. There are always pitfalls you
should avoid.

It's quite obvious that car buyers would prefer low rate loans.
But not all of them know that there are ways to influence on
loan terms. Several important factors are in direct relationship
with the level of interest rates and by manipulating these
factors you can reduce rates on your loan.

One of the main things influencing on interest rates is your
credit history. People with bad credit history are more likely
to get higher interest rates. Nevertheless, a lot of people
carelessly spoil their credit score by not paying debts in time.
High credit score is a good basement for you to get a better
loan deal. But, what if you already have a low credit score? Is
it possible to improve it? The answer is: yes.

First of all, get a copy of your credit report and figure out
what inaccuracies can be corrected. Credit reports may contain
such inaccuracies more often then you could think it. A little
correction can dramatically increase your credit score; hence
reduce your loan rates.

In addition, you should pay all your bills in time and reduce
debts as much as possible. This will allow you to make another
step towards getting a lower rate on the loan.

Down payments are another mean to decrease rates. Of course, you
can get a loan with the minimal or even no down payment; however
by paying a considerable amount of money in advance you will
make a dramatic impact on interest rates. Usually, a 20% down
payment will reduce interest rates to an affordable level.

If you have a good credit score you can qualify for a short-term
auto loan. Short-term auto loans are offered with lower interest
rates. However, the downside is that the monthly payments for
such loans are much higher. People who can afford high monthly
installments can consider this option.

Furthermore, you can shop around for better loan rates. Online
auto brokers can offer you different options to compare. A
broker can do all the hard work for you and finally can find a
deal that will be better than with a dealership.

Affordable auto loans are offered by
WFSExpress.

About the author:
Alexander Anderson is the owner of several auto loan related web
sites. He is an auto loan expert and runs a small consulting
company.