Learn How to Score Great Auto Financing Rates & Save $$$$

If you’re in the market for a car but need to stick to a budget, you’re in luck. The best auto loans in 2024 can help you finance the car you want while sticking to your budget. And the best part is that car loan financing is available from thousands of lenders throughout the U.S., giving you flexibility and the option to compare rates before you buy.

Comparing auto financing rates is the best way to save money on the purchase of your vehicle in the long run. For example, a credit union car loan is just one of many financing options available, though many buyers forget about these types of institutions. Looking for the lowest auto loan rates for your budget? Continue reading to learn how you can save money with low rates on auto financing in 2024.

A Better Credit Score = Better Auto Financing Rates
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One of the biggest factors affecting your auto financing rates is your credit. A credit (FICO) score is a three-digit number that represents your creditworthiness. Lenders use this number to determine how likely it is that you will make your payments on time.

It can be a bit difficult finding an auto loan if your credit score isn’t up to par. So, before you shop around at various banks, credit unions or other financial institutions, it helps to take a look at your own credit history to assess your chances of approval.

One way to get the best car loan rates today is to find strategies for increasing your credit score.  You can get your FICO score and a copy of your complete credit history from the three top credit monitoring services in the U.S. They are:

  • Equifax.
  • Experian.
  • TransUnion.

You can get your credit history from all three agencies for free once per year.

After getting your full report, it’s time to inspect it and look for areas that need some improvement. Check for any errors that may be present on your report, such as inaccurate delinquencies.

Other ways to improve your score include:

  • Make more than the minimum payment on your credit cards.
  • Consolidating high-interest debt into one easy-to-manage loan with zero-interest balance transfer rates.
  • Use your credit cards frequently and pay them off in full each month.
  • Dividing your payments across multiple accounts to prevent using up your credit limit.

You can increase your credit score by making a few changes to your spending habits, like avoiding unnecessary credit card expenses and paying your bills on time. If you work on repairing your credit at least 6-12 months prior to buying a car, you may receive lower interest rate offers during the approval process.

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Updated on 05/24/2022