For most, getting a car loan is unbreakably tied to buying a car. Buy a car, get a loan. The problem is getting a car loan can be even more challenging than buying a car. Car loan rates vary widely from person to person because each lender weighs borrower qualifications differently. Finding the right lender for your circumstances is critical when looking for the best rates.
- Some put more weight than others on credit scores. If you have less than perfect credit, you’ll likely pay a higher interest rate. Finding a lender who uses more than just a credit rating can help you qualify for a better rate. This is why having a spotty credit rating shouldn’t stop you from applying for a loan.
- Some emphasize employment and income. Other lenders use annual income and job stability to help qualify borrowers for loans. If you have a stable income, that can be a powerful trait in helping you qualify for a better interest rate…with the right lender.
- Other factors make an impact. Lenders may consider a variety of other factors when judging whether to issue a loan and at what interest rate. The value of the car vs the loan amount, the amount of down payment, if the borrower is currently in arrears on any loan payments and more. The point is lending money is not an exact science and each lender may use slightly different criteria when making a loan offer. That’s why comparing with My Auto Loan is so valuable.