The Basic Criteria For Auto Loan Approval
There are some basic conditions a borrower must comply with in order to get the required car loans approved. Those minimum conditions are enlisted below–
Age: The borrowers must be 18 years of age or above
Employment: The borrower must have been employed for minimum two years and belong to the same location where his residential property is located.
Income: Usually, lenders require borrowers’ income status to be minimum $2,000, if the borrower is applying for direct car loans.
Physical Assets: Good condition of the borrower’s residential property puts him at an advantageous position in order to get loan approval and low car loan rates.
Credit Ratings: The borrower’s credit rating score can drastically influence the interest rates. Better the status a borrower occupies, lower the interest rates tend to be.
Borrowers with good credit status can obtain a low rate which may be somewhere around 1% to 1.9%. However, there are poor credit auto loans for the people having bad credit history, but the interest rates tend to be higher than other auto loan programs. Hence, experts suggest individuals to get a copy of their credit report first in order to figure out to what extent they can expect the interest rates can be lowered. Take help from online credit reporting agencies like Experian, Equifax, TrueCredit, ConsumerInfo etc.
Types Of Lenders
The prime lenders can manage to devise auto loans with lower rates than any ordinary lending entities. Prime lenders include banks, credit unions and large scale lending entities. Banks offer low rates and help saving thousands of dollars. But, head towards the credit unions that beat banks in reducing the rates even lower. Be a member of credit union to get special low rates, extra features and many more advantages.
Individuals are recommended to check out the credit tiers. Consult loan officers at the banks and lending institutions about their credit tiers which are used to categorize credit standing of the applicants. The tiers are rates like A, A- and the like. Consulting prime lenders and their loan officers can help you with the guidelines and car buying tips along with low car loan rates.
At the end of the day, before you decide on the auto loan program and sign on the dotted line, look carefully for loopholes. Car Loans with low interest rates do not always mean large savings!
Shopping for car loan rates from different companies offering car loans is necessary to get the best offers and lower interest on car loans. This is more important in case of bad credit auto loans because most of the car loan lenders offering car loans for bad credit charge higher interest rates when compared to loans for those with a good credit score. Low Interest Car Loan provides more car buying tips and information for auto financing.