The Interest Rate You'll Pay for an Auto Loan Depends on Your Credit

When it comes time to purchase a new or used car, one of the most important factors that will determine how much you end up paying is the interest rate on your auto loan. Your credit score plays a major role in determining what interest rate lenders will offer you. Understanding how your credit impacts auto loan rates can help you get the best financing deal when buying a car.

This article will explore how credit scores influence auto loan interest rates. We’ll look at the average rates offered for different credit score ranges and provide tips on how to get the lowest rate possible for your credit profile. Read on to learn more about how your credit affects car loan rates.

How to Get a Car Loan with Bad Credit

Introduction 

Buying a car is an exciting experience, but getting approved for an auto loan can be challenging if you have bad credit. A low credit score indicates to lenders that you may be a high-risk borrower. However, there are still financing options available if you have poor or no credit. This comprehensive guide will walk you through everything you need to know about getting a car loan with bad credit.

Understanding Credit Scores

Your credit score is a three-digit number that gives lenders an idea of how reliably you pay back debt. Scores range from 300 to 850, with higher scores indicating better creditworthiness. Here is a breakdown of the credit score ranges:

- 800-850: Exceptional 

- 740-799: Very Good

- 670-739: Good

- 580-669: Fair 

- 300-579: Very Poor

The Absolute Best Student Loans For Graduate School Success

Graduate school can be an incredibly rewarding experience, opening doors to new opportunities and advancing your career. However, it also often comes with a hefty price tag that can leave graduates saddled with overwhelming student loan debt. 

Navigating the options for financing graduate school and choosing the best student loans does not need to be a struggle. With proper planning, research and strategic borrowing, you can fund your graduate degree while minimizing debt. This comprehensive guide breaks down the best approach to pay for graduate school in a strategic order, starting with "free" money and progressing to federal and then private student loans.

Car loans you can’t afford the next subprime

Editorial Cartoon by William Warren by  Robert Romano: “It’s just debt for debt’s sake, not to help build future production or earnings, but to simply fuel consumption.” That’s how Americans for Limited Government (ALG) President Bill Wilson described the latest scam by government and financial institutions to boost “growth.” Having exhausted the market for crappy loans in housing and college students, now banks are turning their attention to the rapidly growing industry of subprime auto loans — that is, loans to borrowers with bad credit, yielding higher interest rates, and are more likely to default.

Actual auto expenses or standard mileage rate? Which business deduction method will cut your taxes more?

Has all the attention given Google's driverless car got you thinking about your auto? If you're a business owner, it could be the perfect vehicle.

It has no steering wheel, accelerator or brake pedal to mess with. You use your smartphone or tablet app to summon the vehicle, set your route, get in and go. Then just sit back and enjoy as the Google machine takes you to your destination.

If it's to a business meeting, you can use the time you otherwise would be driving to polish your presentation. Or you can call your spouse to ask him or her to pick up dinner or the cleaning or the kids. Or you can just relax so you'll be in the best frame of mind for your important professional encounter.

More Pinoys Purchase a New Car with help from Financing

In the first quarter of this year, Bangko Sentral ng Pilipinas (BSP) reported that auto loans increased by 26% to P244.61 billion from P194.37 billion the previous year.

The demand for car loans in the Philippines will continue to increase as more Pinoy car buyers see financing as a better option when purchasing a new car, Carmudi said.

In its recent study, the company reported on the growth of car financing in the Philippines as well as other emerging markets. The white paper entitled “Car Financing in the Philippines” provides a look into the current and future state of car financing and how consumer attitudes toward credit have changed in recent years.

5 Ways To Pay Off Your Car Loan Sooner

Getting rid of debts like car loans sooner rather than later can be a solid investment in your future for a number of reasons. It not only improves your credit history, but means more money in your bank account, so if you’re lumbering away under the cloud of debt, here are five ways to ease the burden and help pay off your car loan sooner.

5 Financial Tips for Recent College Graduates

As a recent college graduate, I know how intimidating personal finance can be. Fortunately, there is a wealth of (free) knowledge online to serve as a starting point for a sound financial education. Here are a few tips I've gathered from friends, family, experience, and online resources to help college graduates (and non-graduates) from any background.

1. Maximize savings on large, recurring payments

There are dozens of sites and apps to help you navigate and keep track of spending – personally, I like Mint.com. Take a good look at your credit and debit card spending and calculate where your money is going as a percentage of your total spending. The biggest portions are your heavy-hitters: rent, food, insurance, loan payments, transportation, etc. Rent is commonly the single most expensive bill you will have to pay on a monthly basis. Keep in mind that it may be unwise to pay more than about one-third of post-tax income on rent. First, be open to trade-offs. The apartment that you're touring may not be in your dream neighborhood, but let's say it's $200 cheaper per month and transportation is only $40 more per month. That's nearly $2,000 in net savings per year. Second, sign a longer-term lease. A year-long lease is generally given at a lower rate per month than a shorter-term lease. If you were able to live in a college dorm room for a year, you can sign for an apartment for a year. Research your own heavy-hitters and look to reduce them where possible.

The Student Loan Scam

Full disclosure: I am currently paying federal student loans that I obtained while in college. I never finished college and it was never a huge amount (about $6000), nor do I expect any kind of reform to ever benefit me, but it would be unfair to say I’m a completely disinterested party.

That said, student loans are big business in the United States. The federal government makes over $40 billion in profits on student loans annually, to say nothing of what private firms make. There is currently more than $1.2 trillion in outstanding student loan debt. To put that in perspective, the total amount of all credit card debt in the US is about $900 billion. It’s not a small amount of money.

8 Ways to De-Corporatize Your Money

1. Ditch the Cards

All electronic transactions siphon money out of your community to some extent, so try the human approach and bank in person. Pay in cash or, second best, write a check. If you have to use plastic, choose debit. Your local merchants lose some of their profit any time you use a card, but they pay up to seven times more in fees when it’s a credit card. And studies show people spend 12 to 18 percent more when they use cards instead of cash.

2. Move Your Debt

Already broke up with your mega-bank? From credit card balances to car loans to mortgages, mega-banks make far more money off your debt than your savings. Refinance your debt with a credit union or local bank and let your fees support your community. Be wary of “affinity credit cards,” which donate a certain amount per purchase to good-hearted organizations but often are connected with a mega-bank.