Getting Approved For An Auto Loan Is Easy. However, Obtaining A Low Rate Auto Loan May Be A Bit More Challenging. When Financing Any Sort Of Merchandise, The Interest Rate Received Makes A Huge Difference.If You Have Bad Credit, A Lender Will Likely Charge A Higher Rate. In Some Instances, This May Significantly Increase The Monthly Mortgage Payments. If Shopping For A New Or Used Vehicle, Adhering To The Following Tips Will Increase Your Odds Of Snagging A Low Rate Auto Loan.When Is The Best Time To Apply For An Auto Loan?If Financing An Auto Loan, Timing Is A Crucial Factor. For The Most Part, Lenders Prefer Applicants That Display Stability. Thus, Steady Employment Is A Must. When Applying For An Auto Loan, Wait Until You Have Been With Your Current Employer For At Least Six Months. If You Have A Habit Of Switching Employers Every Two To Three Months, An Auto Loan Lender May Consider You A Risky Applicant, And Increase The Auto Loan Rate.Establish Credit HistoryBefore Financing A Home Or Auto Loan, Establishing Previous Credit History Will Work To Your Advantage. Auto Loan Lenders Are More Apt To Offer Lower Rates If You Have Maintained A Good Relationship With A Previous Creditor.Building A Good Credit History Is Easy. You May Do So By Applying For A Major Credit Card, Gas Card, Or Retail Credit Card. Upon Receiving The Card, Make A Few Purchases, And Pay The Balance Each Month. This Will Reflect Positive On Your Credit Report, And Quickly Boost Credit Score.Keep A Low Credit Card BalanceWhen Judging An Applicants Credit History, Lenders Will Also Assess Whether A Loan Applicant Can Afford A Particular Vehicle. If You Have Acquired A Lot Of Debts, This May Prevent You From Obtaining Your Dream Car. Therefore, Attempt To Reduce Debts Before Applying For A Car Loan. Fewer Debts Will Increase Your Spending Power, And Make You Eligible For Prime Rates.Wait At Least Two Years After Filing BankruptcyIf You Have Filed A Recent Or Past Bankruptcy, Try And Wait At Least Two Years Before Applying For An Auto Loan. After A Bankruptcy, Lenders Consider You A Big Credit Risk. You May Get Approve For Financing; However, The Interest Rate May Climb As High As 18 Percent.Instead, Focus On Rebuilding Your Credit History. Immediately Following A Bankruptcy, Apply For A Bad Credit Credit Card. If Possible, Attempt To Open At Least Three New Lines Of Credit. By Doing So, You Will Re-establish A Good Credit History And Improve Credit Score. After 24 Months, You Will Likely Qualify For A Reasonable Auto Loan Rate.
