Your credit rating or credit score is a measurement of risk. Low credit scores mean higher risk to lenders, which translates into higher loan rates for you. Knowing your credit rating can help you negotiate your best loan rate.
When it comes to your credit score, nothing is written in stone. You can improve your credit score if you know of a mistake on your credit report. One way is to work with the bureau agencies directly via a letter-writing campaign (however, this can be time consuming and complicated if the report also involves identity theft, late payments, job loss, reporting mistakes or a divorce). For credit repair issues, AutoMall.com recommends Lexington Law. The initial consultation is free. There is a set up and monthly fee if you decide to sign up. Consider the value of your credit rating and the amount you will save in lower interest costs before making a decision. |
| Click the window to close. |
| This is where it pays to think ahead before you get your loan. Long-term loans have lower payments (good from a cash flow perspective) but cost more in interest (bad, if over time, the car becomes worth less than you owe and you need to sell it). Financial experts say 12-15% of your monthly take-home pay is appropriate for a car loan payment. Use this number to gauge the highest sticker price you will pay for a car. Try working the numbers for a loan amount you can afford, and will pay off in three or four years. |
| Click the window to close. |
How Much Car Can You Afford?
Find out with AutoMall.com's Car Loan Calculators
 If you need a car loan, ask yourself, “How much car can I afford?” There are two ways to calculate an affordable car loan. A common approach is to choose a loan amount first, then calculate monthly car payments. Or, if you have a paycheck stub and know or can estimate your credit rating, you can pre-determine what you can afford, and then calculate a loan amount to fit your budget. |
| How much of a loan can you get? |
|
|
| Already know your loan amount? |
|
|
