The most important thing for getting the best car loan rate is your credit score. Many people make the mistake of applying for a loan at a car dealership before checking their credit report and score. If you check your credit score before you look for a lender, you will know where you stand. If your credit score is good, you should be able to get the best rate on a car loan. Don't expect the lender to tell you that you could get a loan somewhere else for less money. Before you apply for the loan, make sure you've done your research. You could save a lot of money by taking the few minutes it takes to get your credit report from the three major agencies.
How to Figure Out Your Credit Score
There's more to your FICO credit score than just a number. If you understand how your credit score is calculated, you can keep it up or make it better. Most credit scores are between 300 and 850 points. Your credit score is better if the number is higher. Five different things will be used to figure out your credit score. Some things will impact your credit score more than others.
The most important part of your credit score is how quickly you pay your bills. Even though it's best to pay your bills on time, lenders will be more interested in how you've paid in the past.
The amount of debt you have. Lenders will look at the total amount of debt you have and how much you still owe on your credit cards. It's a good idea to keep your credit card balances well below the limit.
The length of your credit history, or how long you've had credit accounts open. Do you use credit cards often.
How many open lines of credit do you have? How many different kinds of credit do you have?
Recent credit inquiries and newly opened accounts - lenders will look unfavorably upon your credit record if you have had numerous recent credit inquiries or if you have opened several new credit accounts in a short period of time.