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Car Financing Guide to Interest Rates and Car Loans

Car Financing Interest Rates and Car LoansUnless you make a living in the auto loans industry, you might find that you sometimes may not understand all of the lingo and industry terms used when the time comes to get a car loan. This happens to nearly everyone, so we certainly understand it when some of our website readers ask us questions about the most common financial terms associated with car financing. To help you enjoy a smooth experience when you buy your next car, and to arm you with information to make an informed decision, we have put together a bit of a primer on what some of these common terms really mean in everyday language. Read on to find out more of the crucial information you need to know when you decide to buy your next vehicle.

Car Financing Rates and Credit Score

These days there’s so much talk about credit reports, credit scores and car financing with bad credit interest rates that many people neglect to get to the heart of the matter and actually find out what their own credit scores are. Trust us here; you should always have a current (at least from within the past year) copy of your credit report on hand. Once you get your free credit report online (there are several websites that will provide you with one free copy each year) you need to make heads or tails of what your credit score actually is. Essentially, we recommend that you take a look at the FICO score. If it is well over 750, you’re in pretty good shape and you will be able to get the best car finance rates. However, if your score is below 700 you have what is technically known as “Bad Credit.” Car loans bad credit car financing rates will be slightly higher but still manageable. Actually car finance rates for bad credit haven’t been this low in 10 years. No worries, though, as there are millions of hard working people with lower credit scores these days. And these folks are still able to find great deals when they shop around for bad credit auto financing. We’ll talk a bit more about how they do that in just a bit…

Understanding Car Finance Interest Rates

Interest rates, otherwise known as Annual Percentage Rates (APR) can often be confusing to some people. Think about the interest rates that you pay as a percentage of the total payment you’ll make over the life cycle of your car loan. If you have a loan that requires you to pay 1% APR on a ten thousand dollar loan, you’ll do just that – pay your lender 1% of the total loan cost, in addition to paying toward the principle amount of your loan. It’s obvious, then, that lower is better when it comes to interest rates. You may even be surprised to find out that different lending companies could potentially offer you car loans with varying interest rates. That’s why we always recommend that our visitors use our online loan application form. This allows you to get loan quotes from several lenders to see which one will give you a loan with the lowest interest rates.

Car Loan Financing RatesCar Financing – Just What are the “Terms” of a Loan?

After interest rates we get asked most frequently about what is meant by the “terms” of a loan. While some people speak very broadly with the terms being all the small print that a lender puts on the loan paperwork, technically speaking those bits of fine print are usually the conditions of your loan. The term of your loan is the length of time that your loan will last. Common terms for bad credit auto financing can range from 24 to 84 months. Most car buyers, however settle for a used car loan that range from 36 to 48 months. If you think back to any past car loans that you might have had, you will probably remember paying off those loans in 3 to 4 years. That lines up perfectly with the average loan term that you just read about. When a loan’s term is up, your car loan should be paid off in full.

Here’s the Car Loan Guidance You Need

We hope that by breaking down a few of the most asked about financial terms that you understand a little bit more about car financing. We know that it’s not always easy to stay up with the latest lending trends or to become instant financial experts. The good news is that you really don’t have to do either. AutoLoans.US is your online assistant for finding out all of the latest information about auto loans. And we can even assist you in finding your next car loan. To get the assistance you need with auto financing, take a few moments to fill out and submit the loan application here on this site. If you remember from earlier, this is the same application form that helps you to get competitive loan offers from some of the top lenders in the nation. Consider it your easy path to finding the auto loans you’ve been searching for.

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