Matthews Toyota Asks: Are You Interested Enough in the Interest Rate of Your Car Loan?

Dec 8, 2012

Most people cannot afford to buy a new car outright, which means you’re probably going to have to get a car loan. Your friendly Matthews Toyota Dealer wants to give you some insight about car loan interest rates so you have a good idea what to look for and what to expect.

What Loan Brokers Look At

Almost all financial institutions will look at your credit score before deciding how much of a loan you can be approved for and what your interest rate will be. The higher, or better, your credit score is, the lower your interest rate will be and the easier it is to pay it off. The ideal interest rate is 0% of course, since it is the same as paying for the car with cash but having the opportunity to make payments over time.

If you think your credit score is less than ideal, take some time to improve your score before applying for a car loan. You’ll benefit from getting a better interest rate and saving money on the cost of your car.

Improve Credit Score

To increase your credit score, focus on paying all of your debts on or before the due date. Decrease the amount of money you owe by paying off as much of your debt as possible. Avoid applying for new sources of credit, as each inquiry can decrease your credit score.

These are a few things your Matthew Toyota Dealer want you to keep in your head before you commit to a loan.