| One of the most often overlooked areas that a higher | | | | always be the free interest special, so this is an |
| credit score can save you money is on a car loan. | | | | exception and not the rule. But lets look at what a |
| You have a high interest rate now since you credit | | | | modest interest rate spread can save you. |
| score was a little low. All is not lost. You can start to | | | | Take the same $20,000 loan and if you get charged |
| repair your credit today and depending on your | | | | 14% verses 9% (a very common rate difference |
| circumstances, increase your score by up to 75 points | | | | between a good credit score and a low credit score). |
| in the next 30-60 days. | | | | At the 9% your payment would be $499 like above. |
| One of the most often overlooked areas that a higher | | | | But at a 14% rate your payment would be $548. |
| credit score can save you money is on a car loan. | | | | That’s $600 a year or $2400 on the life of the |
| The car buying process can wear down anyone and | | | | loan. That’s also a good amount of savings. |
| by the time you get to the financing part, you just want | | | | Lets say you are reading this article right after |
| to get out of there. And guess what, the car dealers | | | | you’ve already bought a car. You have a high |
| know that. | | | | interest rate now since you credit score was a little |
| The car selling businesses make as much or many | | | | low. All is not lost. You can start to repair your credit |
| times more on the backend of a car purchase than | | | | today and depending on your circumstances, increase |
| they may make from the car sale. And the interest | | | | your score by up to 75 points in the next 30-60 days. |
| rate is one of the backend profit areas. Now | | | | Once you get your score raised, you can refinance |
| I’m going to be talking about interest rates in this | | | | that loan at a better rate. Even if you drop that interest |
| article but just a word to the wise, add on services | | | | rate by 2-3 points it can mean a pretty good amount |
| and products are generally the highest cost and lowest | | | | of money over the term of the loan. This is a good |
| value. Always get competitive prices on any thing | | | | way to decrease your debt, and get your credit score |
| offered at the dealership. | | | | up for the next time. |
| Now back to our interest rate information. One easy | | | | Low credit scores can be expensive, so anything you |
| way to eliminate half the haggling on a car purchase is | | | | can do to increase your credit score is more money in |
| to get your financing lined up before you ever go to | | | | your pocket. It’s not a difficult process but it |
| the car dealer. Banks and credit unions are a great | | | | does take a little time and effort. If you spend 10-15 |
| source of low rates. Plus you just took one of the | | | | hours working on improving your credit score in the |
| most time consuming parts of the buying process out | | | | next 30 days, and save over $2000 dollars in reduced |
| of the deal. | | | | payments that’s a good hourly rate. |
| There are of course a few exceptions. Dealers or | | | | It’s also a good idea to monitor your credit |
| manufacturers may offer low interest or maybe even | | | | reports during your repair project. Everyone should |
| no interest promotions to sell cars. This you | | | | check his or her credit report each year. It’s |
| can’t argue with, low or free is very good. But | | | | now Free and won’t take much time as long as |
| often times you have to meet some kind of criteria, | | | | you stay on top of it. You can request one credit |
| like a high credit score, to receive these special offers. | | | | bureau at a time every 4 months and have a good |
| What type of savings can you get? | | | | idea of what’s been entered in the past 12 |
| Well, a $20,000 loan at 9% (a very good rate) for 48 | | | | months and how you are progressing. |
| months will have a payment of $499. So if you get an | | | | Don’t pay for something that you can get for |
| interest free loan for the same amount and time the | | | | FREE. Go to the Federal Trade Commission’s |
| payment is $418. Not impressed? Well, look at the | | | | site here to get the full details of getting your free |
| annual savings of $984 or how about the 48 month | | | | credit reports: |
| savings of $3936. That’s almost 4 thousand | | | | With a little determination and effort, you can increase |
| dollars in saving. | | | | your credit score and save some on a refinance or on |
| So as you can see, your credit score can really save | | | | the next car you buy. |
| you some serious money. Now there won’t | | | | |