Low Interest Car Loan Rates Depend on Your Credit Score (FICO)

If it is time for you to buy a used car, then you might be curious about current used car loan rates and if you will qualify for low interest car loans. If you have turned on the television or radio in the past two years, you have been confronted again and again by the dismal economic news plaguing our nation. Many lenders have gone out of business or have constricted their loan requirements to the point that it has become difficult for many people to even qualify for used car loans at all. Today, two main factors affect whether or not you will qualify to receive low interest car loan rates, your credit score (FICO) and the size, if any, of your down payment.

Prior to filling out an application for used car loans, you should become knowledgeable about what’s on your credit report. The dealership will mostly be basing the used car no credit check car loan rates that they offer to you on your credit score. Every American is entitled to a credit report at no charge from Equifax.com, Experian.com, and TransUnion.com, the three main credit reporting agencies. Each of their websites will have instructions on how to obtain your free report. It is an easy process. Once you have your reports, go over them very carefully, highlighting any item that you do not remember as being correct or any item that you disagree with. Then write a letter to each of the agencies listing the items that you are disputing and why. In many cases, the credit-reporting agency will just delete the bad items, raising your credit score, making you more eligible for low interest car loan rates.

Lastly, when submitting an application for used car loans, pull together as much of a down payment as you possible can. Putting a down payment on the vehicle gives you the capability to negotiate with the car dealer. The bigger your down payment is, the better for you. If the auto dealership sees you as less of a risk, they will be more likely to offer you low interest business car loans rates.