Using a Car Loan Calculator to See How Interest Rates Affect Your Auto Payments
It’s very important to realize when using a car loan calculator to see auto loan payments, that having a good credit score is the #1 factor used to evaluate your credit worthiness and decide whether or not you qualify for an auto loan and ultimately what your interest rate will be.
A higher credit score not only gives you a better chance of being approved for an auto loan, it also helps you get the lowest interest rate possible.
If you’re in the “high risk” category, and lucky enough to qualify for an auto, you will get stuck with a higher interest rate that may end up costing you $1000s more in payments over the course of the car loan.
If your credit score is under 650, not terrible but certainly not great (Hint: you can do MUCH better), the best thing to do before applying for auto financing is to raise your credit score as high as possible.
If you already have an auto loan, raising you credit score and then refinancing your car loan may be the best way to lower your car payments.
For example, go ahead and use the car loan calculator above to see how a 2% difference in the interest rate affects monthly payments between a 6% and 4% interest rate.
Why Should I Raise My Credit Score Before Applying For an Auto Loan?
Any time we apply for credit, the reporting agencies make a note of this “inquiry” on our credit report.
Too many credit applications and inquiries can have further negative consequences on your credit score.
For this reason it’s important you DO NOT apply for a car loan until you raise your credit score.
You want to make sure you have the best chance at the lowest interest rate before your apply for an auto loan.
To have the best chance of being approved and getting a low interest rate, you must follow 2 important steps:
Step 1 is to know your current credit score.
Step 2 is to increase your credit score by up to 200 points with a free consultation from credit experts that know exactly how to improve bad credit in the shortest amount of time.
To discuss how you can raise your credit score by up to 200 points, CALL the credit experts at Credit Repair USA for a FREE Consultation and see how high you can raise your credit score ASAP:
You’ll be happy you did.