Why is my car loan APR high if my credit score is 850?

"I'm shopping for a car loan and read that people can get interest rates of 2% to 3% with great credit.

I have a credit score of 810, but the lowest APR I can find is 5%. What gives?"

“Chances are that you’re extending your loan out to 60 months or more.
If you lower the length of the loan to 24, 36, or even 48 months, you’ll probably see that interest rate drop to the 2% or 3% rate.
Make sure to keep shopping around as much as you can to find the best interest rate.”
Eric Schad
Answered on Jun 10, 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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