Although the credit crunch has significantly diminished the borrowing power of consumers, the lending well isn’t completely dry just yet. While lenders still want to lend money to you, you will likely need to search harder and dig deeper to get better loan rates, especially if you have less-than-perfect credit.
In addition, knowing what influences interest rates across the board can help you to negotiate a better deal the next time you need to take out a new loan, and understanding what is involved in your current loan can help you to refinance your car title loan or other loans for better terms.
Let’s face it, getting a better loan rate is ideal! Especially if your original loan and/or lender doesn’t suit your financial or personal needs. Getting a better loan rate, however, does require some work paired with diligent research.
You are already in a relatively huge financial commitment, and getting yourself back on your feet financially should be your number one priority.
Read more about loan rates from https://www.thebalance.com/what-are-interest-rates-and-how-do-they-work-3305855.
Finding an auto loan or car title loan with a low interest rate can save consumers hundreds if not thousands of dollars.
When it comes to all types of financing, there are a handful of steps that you can take well ahead of time to ensure your getting the absolute best deal possible. This is true, as most consumers know. Especially when you’re shopping around for an auto loan with or without bad credit! Having bad credit can really put a halt on a lot of your financial plans.
In general, lenders look for proof of a stable income. If you were only working part-time when you applied for the loan, showing proof of full-time employment or additional income might convince the lender to lower your rates.
In some cases, you might be better off making a larger down payment, depending on the type of loan, or borrowing less money so that you can get a loan more suited to your financial situation.
Also, the importance of a good credit score and profile cannot be stressed enough. Many borrowers walk into a financial institution without having the slightest idea about their creditworthiness. So, make sure that you either have a solid score or you are actively taking steps to increase your score. You should absolutely do so in order to get better loan rates.
Obtain copies of your credit report from all three bureaus and check carefully for any inaccuracies or derogatory remarks. Correct them to the best of your ability before reapplying for better rates.
Read more about credit scores from https://www.equifax.com/personal/education/credit/score/what-is-a-credit-score/.
Setting yourself up for car loan success requires the ability to do your research and take the necessary precautionary measure before submitting an auto loan application.
Even small changes can save you a significant amount of cash on your car loan! With a score below 750+, you’ll likely want at least a little improvement. Chances are you’ll want to take a few steps to boost your score within a few months!
In order to lower your loan rate and boost your credit score, you’ll want to take these steps before you make a huge financial commitment:
It’s a fact. Your overall credit score is primarily based on your debt-to-credit ratio. That means the amount of debt you’re carrying against the amount of credit you actually have available. By paying down you revolving debt, it can improve this ratio and boost your score rather quickly.
An alternative to boost your credit score is by asking for a credit limit increase on one of your existing accounts. It should be noted, this can result in a hard pull on your credit report which decreases your score temporarily. If you’re planning on using this method it’s advised you do so at least a few months before you apply for a car loan. Be sure you’re only asking if you know you’ve been on-time with payments and decent credit as is.
Unfortunately, there are a number of credit reports in the system that have errors. And yes, these can lower your credit score. With a report showing accounts that don’t belong to you, contact the creditor and fix the issue as soon as possible.
When it comes to getting a loan, you’d never want to jump into a contract and scenario that you’re unfamiliar with head first. Same said about the potential lender. To get the absolute best rate after adjusting your finances, debt, and credit score, you’ll want to shop around for loan rates and compare more than one offer from at least 3-4 lenders.
It’s true, refinancing is also always an option for those looking for better rates. If you’re searching for a loan for the first time, keep in mind that it’s in your best interest to obtain as many quotes from lenders as quickly as possible! Typically, within a 10-day period. This lets the credit bureaus know that you’re on the hunt for one particular loan. And ,not just multiple lines of credit! That will ultimately lower your credit score due to too many inquiries.
TFC Title Loans can get you a quick cash car title loan for an emergency faster than any other lender! Our online title loans are simple & truly easy! Most, if not all, of our customers receive a title loan approval within a matter of minutes.
This is then followed with a step-by-step walk through of how a car title loan works. We’re more than capable of helping you understand how does a car title loan work and if it’s suitable for you.
One of our knowledgeable and friendly customer service staff members will be ready and more than happy to assist.
We have competitive loan rates and low interest rates that are accompanied by absolutely no prepayment penalties. Though the maximum car title loan interest rate depends specifically on your state laws & regulations, TFC gives our customers car equity loans at the best rates within states permitted!
If you have bad credit or no credit score whatsoever, TFC Title Loans is your number one stop for quick car title loans in an instant. Your car is your pre-qualifier and your credit score is not a deterrent at all! Apply today and take care of those emergency expenses with an affordable car title loan from TFC.