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Low_Interest_Rate_Car_Loan___Put_Your_Good_Credit_To_Work

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					Title:
Low Interest Rate Car Loan – Put Your Good Credit To Work

Word Count:
533

Summary:
If you are in the market for a new vehicle, you will want to find a low
interest rate car loan. One of the first things to do before starting
your search for a new car is to obtain a copy of your credit report. You
will want to make sure you have a good credit standing before applying
for a new car loan.

One of the first things car dealers do after you fill out an application
it to run a credit check. It is not a pleasant experience to find out
that your credit is not as g...


Keywords:
auto loan, car loan financing


Article Body:
If you are in the market for a new vehicle, you will want to find a low
interest rate car loan. One of the first things to do before starting
your search for a new car is to obtain a copy of your credit report. You
will want to make sure you have a good credit standing before applying
for a new car loan.

One of the first things car dealers do after you fill out an application
it to run a credit check. It is not a pleasant experience to find out
that your credit is not as good as you thought or that you have errors on
your report when you are already at the car dealer. This can be both
embarrassing and harmful to your credit. You want to try to avoid having
to go from dealer to dealer to obtain a low interest rate car loan.
Another tip to remember is that every time a dealer runs a check on your
credit, it can affect your credit rating. If you already have a problem
with your credit, you do not want to further lower your credit score,
even if it is only by a few points. On the other hand, you can request
your personal credit report as often as you like without it having any
effect on your credit rating.

High Credit Score – Low Risk

Having a high credit score rating is your best bet in obtaining a low
interest rate car loan. Many consumers are lured into shopping for a new
car by advertisements that promise very low interest rates, sometimes
zero-percent financing. Unfortunately, not everyone qualifies for this
low of a rate. Only customers with excellent or above average credit will
be offered deals like these. This is why it is so important to clean up
your credit report as much as possible before applying for a car loan.

Improve Your Credit Score
If you currently do not qualify for a low interest car rate loan there
are steps you can take to improve your credit score rating. If the
problem is simply an error on your credit report, you can contact the
credit rating agency to have the problem resolved. Even though it is
their error, they will most often ask for documentation if necessary to
back up your claim. For example, if you have already paid off an account
and your report shows the balance is $2,500, they will want a cop y of the
account being paid in full.

By paying your bills on time, you can also improve your score and get a
lower interest rate on a car loan. Even if you have had late payments in
the past, if your current records show that you are making timely
payments, lenders will view your record more favorably.

Your debt to income ratio is also an important factor when trying to
obtain a low interest rate car loan. You should try to keep your credit
card limits well below the maximum amount allowed. Also, if you h ave paid
off accounts in the past, you should not close the accounts out. Open
accounts with a zero balance will help your debt to income ratio score.

				
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