If you are looking at purchasing a new car, one of the main things you may be wondering is how much you can expect to pay in interest over the lifetime of the loan and what will your interest rate be.
Of course, you may also be wondering how much you should work on your credit before you start looking for a new car and auto loan.
When looking at auto loans you will find that the better your credit score is, the better your interest rate will be as well.
In fact, we not only recommend that you have a higher credit score before you even start looking, but we recommend that you start working on building your credit as soon as you know you want to purchase a car.
Auto loan interest rates can get substantially higher if you have a lower credit score. The higher you can get that score, the better.
The actual credit score you should aim for can very because interest rates can vary based on your credit score, your debt to income ratio, and the down payment that you are making or planning to make.
While all these things do play into it, you still want to make sure that you get your credit score as high as you possibly can because credit score plays a lot into what you can get approved for and what your interest rate will be.
As you can tell, a rule of thumb is to get your credit score as high as possible and work on it as much as you can before you start applying for any auto loans.
If you are interested in learning more about our auto loans or want to get the process started, be sure to reach out to us here at Palmetto Citizen Credit Union today.
