Auto loan interest rates seem to be the biggest issue for borrowers planning to get car financing. Whether the car to be purchased is new or used, interest rates will form the decisive factor. Auto finance deals from Ontario Car Financing Loans come with the assurance that the interest rate will be highly competitive.
There are many factors that effect the auto loan interest rate you will be offered. The largest being your actual credit score. Credit scores provide financial lenders with an outline of your credit summary. Both the credit score and credit history is used to determine the interest rate of an auto loan. However, there are other auto finance lenders out there who use other factors in determining your interest rate.
Here are a few of them:
- Work History
- Income vs. Expenditures
- Previous Lending
Be advised that we have lenders that look at three different areas before determining your auto loan interest rate.
- Your credit score and history
- Any asset or collateral to place against the financing
- Your income vs. your expenses
You may have had a blemished past but have worked to correct your problems. This is largely taken into consideration when figuring the interest rate for your auto loan.
A lower credit score may be considered a good thing. Having attributes in other areas can outweigh your credit score. Here is a guideline you may use as a reference. A credit score of 730 – you have excellent credit. A credit score of 700 to 729 – you have good credit. A score of 670 to 699 – and a lender will look closer at your credit file. Any score below this places you into a higher risk category. This is when other factors in your credit history come into play and allow your loan to be approved with the best interest rates available.
Apply for your car loan : And be approved with the lowest interest rates today.