How do you get a low interest car loan?
What are some things I can do to get a low interest rate on my car loan? I’m worried I won't find a loan with a good interest rate because my credit score is low.
While it may be difficult to find a low interest rate with a lower credit score, it doesn’t mean you’ll get a loan with an insanely high interest rate either. Here are a few things you can do to get a lower interest rate on a car loan:
- Work on improving your credit score: Check your credit report for any mistakes. Trying to pay down any high debts and staying on top of your bills can help improve your score.
- Get a cosigner: If you’re worried about your credit, it can help to get a cosigner with excellent credit. This will help you find better terms on your loan!
- Make a large downpayment: Often, you’ll be able to find better terms if you save up and make a large downpayment on your loan as lenders will see you as less of a risk.
- Get a short repayment period: Many lenders will offer lower interest rates if you shorten your repayment period. Additionally, a shorter repayment period means you’ll be paying interest on fewer payments. Just make sure that you can afford the increase in your monthly bills before committing to a shorter loan term.
- Shop around: Don’t settle with the first lender you find! Get information from multiple lenders before settling on a loan. Often, you’ll be able to find better terms by comparing rates from multiple sources. Look for lenders who work with lower credit scores or dealerships offering deals on cars and financing.
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