| A low interest rate auto loan can help you | | | | decisions based on the other person's score, not |
| establish a good paymenthistory with a small | | | | yours. Thisalso gives you a chance to improve |
| secured loan. Even with no credit history, you | | | | your credit history. |
| canget low rates by using the following strategies. | | | | The third strategy is to refinance your car loan in |
| Understanding Your Credit Profile | | | | the future, whenyour credit score improves. |
| Even if you haven't used credit in the past, you | | | | Establishing two years of good credit canusually |
| still have a creditscore. Your income, assets, and | | | | help you qualify for low conventional rates. |
| lack of debt are all positive factors. | | | | Other Qualifying Factors |
| With enough resources, you may find that you | | | | A 20% down payment will get your reasonable |
| have a good credit score andqualify for "A" loan | | | | rates, but 50% can help youeven more. With |
| rates. | | | | equity built into the car, lenders down grade the |
| Most people with no credit will have to turn to a | | | | riskof the loan. |
| sub prime lender fortheir first loan. Fortunately, | | | | New cars bought from dealerships are also seen |
| auto loans are secured by the vehicle,so rates are | | | | as a lower risk. Theyare less likely to need repairs |
| lower than most other forms of credit. | | | | or have other problems. However, you mayfind a |
| Picking Your Strategy | | | | better value with a used car in the classifieds. |
| The first and best strategy to find a low rate | | | | Other Options If You Have Time |
| auto loan is to comparerates from several lending | | | | If you have a year or more before you need to |
| companies. Too often financing offered atthe | | | | purchase a car, startbuilding your credit by |
| dealership is overpriced. Online lenders can offer | | | | opening a credit card account and creating a |
| you more optionsand better rates. | | | | goodpayment history. In another six months, do |
| While smart shopping can help, having a co-signer | | | | the same with a new account. |
| with a good creditscore will also improve your | | | | With a reliable credit history, you will soon be able |
| rates. The financing company will base theirlending | | | | to get the bestrates on auto loans. |