A lot of people are misled by the belief that their credit score is the sole thing which can help them get a low auto loan rate. The truth is that there are other ways which you can do so that you will get a low loan rate. These ways include executing comparison shopping, improving or recovering the credit score, selecting another car type or model, and getting a cosigner. Aside from these ways, there are still other alternatives which you may also try so you will be able to get the best car loan.
One thing which you can do so you will be able to lower your auto loan rate is to improve your credit score. For you to have a higher credit score, you have to make sure that you pay your creditors on time. If ever you cannot pay on time, write or call your creditors and tell them that your payment will be late; if possible, ask them to extend your payment period. If you happen to give your payments regularly and this will be the first time that you cannot pay on time, there is a possibility that your creditors will extend the payment period.
To avoid other problems, be sure to tell your creditors while you are still applying for the loan that you have some difficulty in paying on time. Perhaps, the creditors have plans or programs which suit people who are in the same situation as yours. Another thing which you should also consider is the car itself. The loan rate will depend upon the value of your car so having a used or new car will make a lot of difference in the loan rate.
If your car is already used, you will probably get a higher interest rate due to the fact that the loan is secured. Most probably, it would be best for you to select a new car which, though it is one of the new models, still comes at a low price. The car which you may get may not really be the car of your dreams but you may get it through a loan with a lower percentage rate. Another way which can help you get a loan with a lower percentage rate is by having a cosigner.
Though looking for someone who trusts you and because of that trust is willing to act as your cosigner is hard, you still have to look for one since having a cosigner means that you will get a lower loan rate. Usually, this is a problem for most people because the cosigner does not want to be burdened by the debts of other people. However, you should not really worry about this. You just have to make sure that you pay your bill regularly by avoiding late payments. If you pay your bills on time, then your cosigner need not pay anything.
You need not really be burdened by the high loan rates. Do not despair because there are simple ways which will help you lower the auto loan rate. Another way which you can try is make some comparisons by shopping around. There are a large number of lenders out there and the rates set by one lender differ from the rate set by another. Just be patient and you will be able to get a lower percentage for your loan.