Is a 5.9% interest rate too high for a used car loan if I have great credit and make $70,000 a year?

"I'm shopping around for a new car loan. I have a credit score of 780 and income of $70,000 per year.

The best interest rate I found was 5.9%, which seems high. Am I looking in the wrong place?"

“If the best interest rate you found was 5.9%, and you have a 780 credit score and income of $70,000, other factors could be at play.
Have you checked your credit report recently to see if you’ve had anything in collections or any charge-offs?
If your credit report looks good, it could just be that you haven’t been shopping in the right place.
Try credit unions and local banks to find the best rates. If possible, go in person to apply rather than fill out an application online. You might secure a better rate this way, especially if they’re running in-person specials or something similar.”
Eric Schad
Answered on May 28, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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