| Most banks have strict policies about whom they will | | | | The first thing to avoid is to rely completely on the car |
| lend their money to and for what the money will be | | | | dealer. He will always get a certain percentage out of |
| used. They will not grant you a car loan for a used car | | | | car loan transactions. In fact, it will be advisable if you |
| which is older than five years. They charge higher | | | | are able to secure a car loan before you allow a car |
| interest rates on loans for used cars than on loans for | | | | dealer to be within a shouting distance from you. |
| new cars. And very rarely do they grant loans to | | | | When you look for a credit grantor, don't accept the |
| people who fall under the "subprime" category. | | | | first one you encounter. Compare interest rates |
| A person who is considered a subprime borrower is | | | | offered by lenders, but don't accept the average rates |
| one who has a blemished credit history. He may not | | | | they give. A lender may offer a lower interest rate for |
| be paying his bills on time or he may overextend his | | | | a person with a credit score of 800 and a higher |
| credit card. A subprime borrower is usually someone | | | | interest rate for someone with a score of 600. Ask |
| who has a credit score below 620. If your loan | | | | for specific rates. You may also approach credit |
| application has been rejected on the grounds that you | | | | unions and banks where you have a current account. |
| belong to this credit-unworthy group, does this mean | | | | You also have a chance to improve your "category" |
| that you cannot borrow anymore? | | | | by checking your credit report and reforming your |
| You may still get a car loan if you will look for lenders | | | | credit score. For example, there might be an error in |
| that grant financing to subprime borrowers. Avoid | | | | the information found in your credit report. This error |
| finance companies that advertise "1.9% interest**". | | | | may have been the one responsible for the black |
| Notice the sign (**)? Below the big ads, written in fine | | | | mark on your credit history. You must immediately |
| print, the ** means for prime borrowers only or for | | | | have this error corrected by informing the credit |
| people with excellent credit. Clearly you do not belong | | | | bureau in writing. |
| to this worthy group. People with bad credit will have | | | | Credit scores can change. If you pay your bills on time |
| less privileges when getting a car loan. The interest | | | | and if you always stay within your budget, then your |
| rates are decidedly high. You may opt to search for | | | | credit score will likely improve. Once you have a higher |
| online lenders. But there are measures you may take | | | | number, you may get a lower-rate refinancing for your |
| to improve your circumstances. | | | | car loan. |