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Improve Your Rates

What’s the most important aspect of taking out an auto loan? As any auto loan expert would tell you, it’s the interest rate. Your loan’s interest rate basically dictates how much you’ll be paying for borrowing a loan. A high rate can end up costing you hundreds, possibly even thousands, of dollars more than a lower rate would. It really does pay off to make sure you get the lowest rate possible. Here’s a look at what you should do before you apply to get a low-rate auto loan.

Before You Apply

  • Your first step is to obtain a copy of your credit report, that way you’ll have a clear look at your credit score and total amount of debt. You can get a free copy of your credit report online from one of major credit bureaus. They allow you to receive one free copy per year, anything more will cost you.
  • Generally speaking, the higher your credit score, the more likely you will be approved for an auto loan with a low interest rate. Thus, you should do everything possible to increase your credit score before applying for a loan. That means paying off any long-standing debts, lowering your debt to available credit ratio, and checking your credit report for any mistakes that could be hurting your score.
  • Don’t apply for a loan at the first lender you find, take your time and comparison shop between multiple lenders. Hawaii Auto Loans can help you by matching you with several lenders who can provide you with the loan terms you’re looking for. Get started now and get free quotes today!
  • If you have some time before you plan on purchasing a vehicle, you would be wise to save for a large down payment, especially if you have poor credit. Lenders love seeing a big down payment and they’ll be more willing to approve an auto loan with a lower interest rate. It also means the loan’s principal will be lower and you’ll be able to have it paid off much faster.
  • Finally, if your credit score is being dragged down by a large amount of debt, you might want to consider enrolling in a debt consolidation or credit counseling program. These services can work with you to reduce your total debt, improve your interest rates, and eventually get you debt free. By getting rid of debt, you’ll likely see your credit score increase, making you eligible for better interest rates on your auto loan.

Visit HI Auto Loans' Glossary for a list of common terms lenders use when explaining a loan.