Think you’re paying too much for your car loan?
Your credit score could be the culprit.
The key factor affecting your car loan rate is your credit history, says Eileen Ambrose, writing for AARP Bulletin.
“Consumers with excellent credit scores of 740 or higher receive the best rates for financial products,” says Bethy Hardeman, chief consumer advocate at Credit Karma, interviewed by Ambrose.
Want to improve your credit score? Start by visiting myfico.com.
They’re the folks who produce the widely used FICO® credit score, reports Ambrose.
According to FICO, 90 of the top 100 largest U.S. financial institutions use FICO Scores to make consumer credit decisions. The better your score, the less your loan will cost you.
FICO’s website offers tools and tips showing what affects your credit score and how you can improve it.
The savings can really add up.
If you finance a new car worth $25,000 with a 4-year loan, you can save an extra $6,620 by raising your credit score from 589 to 720, says FICO.
You can check out your potential savings by using their loan calculators at myFICO.com.