Before the sub-prime mortgage crisis, it seemed to be easier to get a loan for just about anything. Since this crisis, it has become more difficult to secure a loan from banks or other lenders. The reason is that credit scores have become the number one source of determining not only whether you qualify for a loan, but at what interest rate. So how do you get the best auto loan rate? Here are some tips.
How Do You Get the Best Auto Loan Rate?
- Secure your credit report from the three agencies and ask for credit scores from them as well.
- Scrutinize your three reports very carefully to ensure there are no errors on the report. If there are, notify the credit agency immediately.
- If you find that your credit score is below 700, you will have to try and raise that credit score by paying down credit before you begin the loan process.
- Once you do that, you can research the various interest rate auto loans online.
- Be prepared to give the dealership a large down payment.