Car Loan Dealers: Car Loan Dealers

Friday, July 20, 2007

Car Loan Dealers

Low Interest Rate Car Loan – Put Your Good Credit To Work
By Carrie Reeder

If you are in the market for a new vehicle, you will want to
find a low interest rate car loan. One of the first things to
do before starting your search for a new car is to obtain a
copy of your credit report. You will want to make sure you have
a good credit standing before applying for a new car loan.

One of the first things car dealers do after you fill out an
application it to run a credit check. It is not a pleasant
experience to find out that your credit is not as good as you
thought or that you have errors on your report when you are
already at the car dealer. This can be both embarrassing and
harmful to your credit. You want to try to avoid having to go
from dealer to dealer to obtain a low interest rate car loan.
Another tip to remember is that every time a dealer runs a
check on your credit, it can affect your credit rating. If you
already have a problem with your credit, you do not want to
further lower your credit score, even if it is only by a few
points. On the other hand, you can request your personal credit
report as often as you like without it having any effect on your
credit rating.

High Credit Score – Low Risk

Having a high credit score rating is your best bet in obtaining
a low interest rate car loan. Many consumers are lured into
shopping for a new car by advertisements that promise very low
interest rates, sometimes zero-percent financing.
Unfortunately, not everyone qualifies for this low of a rate.
Only customers with excellent or above average credit will be
offered deals like these. This is why it is so important to
clean up your credit report as much as possible before applying
for a car loan.

Improve Your Credit Score

If you currently do not qualify for a low interest car rate
loan there are steps you can take to improve your credit score
rating. If the problem is simply an error on your credit
report, you can contact the credit rating agency to have the
problem resolved. Even though it is their error, they will most
often ask for documentation if necessary to back up your claim.
For example, if you have already paid off an account and your
report shows the balance is $2,500, they will want a copy of
the account being paid in full.

By paying your bills on time, you can also improve your score
and get a lower interest rate on a car loan. Even if you have
had late payments in the past, if your current records show
that you are making timely payments, lenders will view your
record more favorably.

Your debt to income ratio is also an important factor when
trying to obtain a low interest rate car loan. You should try
to keep your credit card limits well below the maximum amount
allowed. Also, if you have paid off accounts in the past, you
should not close the accounts out. Open accounts with a zero
balance will help your debt to income ratio score.

About the Author: View our recommended lenders for Car Finance
Loans http://www.abcloanguide.com/autoloans.shtml.

Source: http://www.isnare.com

posted by Illusion Technologies @ 4:20 AM

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