Why is my car loan interest rate 9% on a 72-month loan if I have a 750 credit score?
"I have a $60,000 annual income with very few expenses, and my credit score is around 750. Albeit, I don't have any installment loans in my credit history.
Why is my pre-approval rate 9% on 72 months?"
Answer provided by
Answered on Jun 09, 2021
“You might have answered your own question: The reason your rate is so high is because you lack installment loans in your credit history.
Furthermore, 72-month terms, like yours, yield a higher interest rate.
Did you shop around? If you didn’t, that could have hindered getting a better interest rate.
There’s still time to find a cheaper interest rate. Shop around, and see if you can lower your rate through another lender or a shorter-term loan.”
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