Online Lenders Offering Low Interest Auto Loan Rates in Las Vegas
The constant challenge of the most beneficial car loan rates is crucial today as the economy is going down the tube. People in many states, especially Florida, Nevada, California, Arizona, Georgia, Michigan, and Ohio, are facing huge foreclosures and job losses. How can you find the lowest cost auto loan rate if you live in one of those states and also have a foreclosure?
Spending months trying to locate as many lenders as possible and getting quotes from each one doesn’t seem realistic when you’re desperate to buy or refinance your vehicle. However, as much as the best auto loan rates depend on the lender, there are other factors involved that will be discussed in the following paragraphs.
The overriding question is how to help yourself get the best car loan rate. The first thing you should do is get your most recent credit report and credit score from one of the big three credit reporting agencies. Your credit score is one of the main determinants of the interest rate the lender will charge you on a car loan. If your score is 600 or less, you’ll pay a higher interest rate than someone with a score of 725. If you’ve recently defaulted on a loan or credit card, you’ll find your friendly neighborhood banker won’t be as friendly when you apply a car loan. If you have several small balance credit cards, you can try to pay them off as quickly as possible before applying for an auto loan. Every card you pay will help improve your credit score.
Maintaining a healthy credit score is of the utmost importance when seeking any type of loan. If your score is already damaged, you can try buying a good, solid used car instead of a new car. This will lower the amount you have to finance and keep your monthly payments lower.
Another way to get the best interest rate would be to get a secured car loan. In a secured loan, you have to pledge collateral equal to the amount of the loan. This collateral can be any assets you may have, such as stocks, bonds, jewelry, antiques, your house (which I wouldn’t suggest), and any other valuable property you own, free and clear. Some lenders, who specialize in bad credit auto loans, will even allow the car you’re financing to be pledged as collateral for the loan. Secured loans should be treated with care, as you can lose your collateral if you default on the loan. Although you can get a lower interest rate with a secured loan, you also risk losing any assets you promised.
The other option for a car loan is an unsecured loan where the bank does not require collateral. These are difficult to obtain if you have a bad credit report. Secured loans are much less risky for lenders, as they can repossess your collateral in the event of a default. Because of this, most lenders are willing to give secured loans at a lower interest rate and to consumers with bad credit problems.
There are now many online lenders who specialize in bad credit auto loans. Do your research, be prepared to fill out an application honestly, and you may be in a new or used vehicle sooner than you thought possible.
