Car Financing and Loans
Car financing is an important step in the car buying process. Often times car buyers do not research their finance options and opt with car dealership financing. This ends up costing them hundreds, even thousands of dollars over the life of the loan. Car dealerships love to advertise great finance rates, but these offers merely lure you to the dealership where you'll find they offer uncompetitive rates. The great rates they advertise on TV have many restrictions and are reserved for consumers with great credit scores.
Credit Score
Your credit score is the most important factor when you apply for loans. Lenders look at your score to determine your credit worthiness, helping them decide how much to give you and at what interest rate. It is important to order a copy of your credit score from all three credit bureaus before you apply for car loans. Discrepancies in your credit report can cost you, so ensure that your credit report is accurate.
Your MyFico Score
is the score used by lenders, hence the most valuable
to know. Don't fall for the many credit report scams online. The
sites offering free credit reports often times don't even show
you your credit score.
Car Loans
We've already partially discussed why you should stay away from car dealership financing. What you might not know is that a car dealership often times sells you a car loan from a local bank, and adds percentage points on top of the banks offer which is straight profit for the dealership. Car dealerships are not required by law to reveal this practice either!
When looking for car financing, we recommend a visit to Capital
One Auto Finance
Capital One offers very competitive rates and you can apply instantly
online. You simply specifiy the loan amount you need, and you
will receive a Capital One Auto Finance Blank Check®. It works
just like a personal check, you simply fill in the check once
you find the car you would like to purchase. You are under no
obligation unless you actually use the Blank Check®.
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