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Can Closing Bank Accounts Help in Getting a Better Rate on Auto Loans?

The auto loan lending industry together make one of the biggest franchises on the planet. It is an obvious fact that most of the car buyers don’t have the ready finances which are required to fund their car. But, almost all of them do have the ability to pay back the finances when they are divided into monthly installments. Due to the high amount of importance given to credit score during the loaning procedure, many borrowers seek advice from others as to how they can improve their score. One of the advices which are heard more often is closing old bank accounts.

Every auto loan applicant should note this fact that closing off old accounts don’t improve the score but actually reduce them. Firstly, bank accounts are an important part of an individual’s credit history. These are records that the applicant has been making financial transactions on his/her account for quite some time now. Closing them off would completely erase the transaction history which can negatively impact the credit score.

Moreover, personal banks are one of the best options an individual has of getting the auto loans at cheap rates. This is because the bank officials know the applicant’s paying capability and history which is why they are more willing to risk the finances on their client as compared to a stranger.

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