How To Get An Auto Loan With Bad Credit

The post How To Get An Auto Loan With Bad Credit appeared first on Official TransUnion Blog.

Bad credit doesn’t necessarily mean that an auto loan is out of reach. Though lenders prefer borrowers with a credit score of 760 or higher, you may still be able to purchase a car with an imperfect credit history. Higher interest rates will probably accompany your loan, but shopping around and comparing offers can help you to find a fair price.

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Poor credit may cause higher interest rates, but there are plenty of ways to save money on your car loan. For starters, try choosing a shorter term loan. A 3-year loan will likely carry a lower interest rate than a 5-year loan. Your monthly premiums will be higher on the 3-year plan, but you’ll pay off the loan faster and pay less overall in the end. Also, consider buying a new car rather than one that is used — a loan for the latter is usually more expensive.

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Will the Fed Interest Rate Hike Impact Your Mortgage?

Now that the Federal Reserve decided to increase the federal interest rate in December, it’s important to know how the recent and future rate hikes will affect your mortgage rates.

Click here to continue reading about the following subjects:

  • Effects of the Fed Hike
  • Existing Fixed-Rate Mortgages
  • Adjustable Rate Mortgages
  • Future Home Buyers
  • Refinancing Your Home

Credit Card Tip: Make sure you understand grace periods

Your credit card’s grace period is the number of days you have to fully pay your bill to avoid finance charges. Typically, though, grace periods only apply to purchases you’ve made and not to other kinds of transactions (e.g., balance transfers and cash advances).

Refinancing

If you’re thinking about refinancing, at least part of your decision should be based on how long you think you’ll stay at your current home. That way, you can figure out whether you’ll recoup the up-front refinancing costs with enough monthly savings at the lower, refinanced rate.

Personal Loan Tip

When weighing personal loan offers, you shouldn’t necessarily pick the one with the lowest rate. For each loan, also consider the impact other terms—penalties, fees, payment flexibility—may have on your bottom line.

Credit Cards Now Offer Free Credit Scores

Checking your current credit score should be an easy task, free to everyone. Using loans and credit cards is our current lifestyle and creditors use our FICO score to determine whether to loan us money or not. Knowing your score before you apply for loans can reduce the stress of the unknown.

Below are credit providers who offer free scores to their clients: Continue reading Credit Cards Now Offer Free Credit Scores

Did you know? Credit Card APRs…

Did you know your credit card may use 2 different APRs, a standard one and a higher, Penalty APR (also called Default APR)? If you are more than 60 days late on your monthly payment, the creditor may apply the higher Penalty APR to all your outstanding balances. So try your best to pay your bills on time!

Do inquiries affect my credit score?

Inquiries have a relatively small impact on your credit score.

The only inquiries that might affect your credit score are those initiated by you for specific credit transactions including mortgage, credit card, auto applications, and insurance.

Multiple inquiries that may occur when shopping for the best rates should not lower your credit score. Most of the methods used by the credit bureaus involve steps that make sure your score will not be negatively affected.