TopConsumerReviews.com Best Auto Loans
      August 18, 2019

Home  >  Auto Loans  >  Articles

Best

Auto Loans

  1. LendingTree
  2. LendingClub
  3. My Auto Loan
  4. Cars Direct
  5. Road Loans
  6. Automotive
  7. Auto Credit Express
  8. OneMain Financial
  9. USAA
  10. Instant Car Loan
  11. Web 2 Carz

Compare Products

  • Select any 2 companies in our reviews to compare them head-to-head!
  • Compare

Your Information Is Secure
Worry Free Car Care Manual Newsletter

Latest Reviews

Cruise Vacations

Cellulite

Irritable Bowel Syndrome

Keto Diets

Online Fitness

Personal Trainers

Pet Meds

Popular Diets

Printer Ink

Wedding Planning Guides

 

Related Articles

Are Auto Loans Through A Car Dealer A Good Idea?

Auto Loans Versus Auto Leases

How Much Car Can You Afford?

How Your Auto Loan Can Be Affected By Your Credit Rating

What To Look For When Shopping For An Auto Loan

 

Top Consumer Reviews Articles

TopConsumerReviews.com provides unique articles that you won't find anywhere else on the internet. These articles are designed to help you make the most informed decisions possible.

How Your Auto Loan Can Be Affected By Your Credit Rating

Our lives are dominated by numbers. As students, grade-point averages were the numbers which ruled our lives. In the working world, the success or failure of any business is determined by the financial bottom line are you in the red or the black? As individuals, numbers fill our lives, too. What is our bank account balance? What is the interest rate on our loans and credit cards? All of these numbers, when put together, can affect everything we do.

Take, for example, a very important number: credit rating.

A credit rating is part of your credit portfolio. Every financial decision a person has ever made, from their first credit card to their student loans, are part of the report. Any missed payments a person has ever had also are part of the report and can have a negative effect on any future financial dealings.

There are three credit reporting agencies in the United States: Equifax, Experian and TransUnion. These companies collect financial data on individuals, and then use a mathematical algorithm formula, developed by FICO, to generate a number between 300 and 850. A high, three-digit credit score indicates the person is of solid financial standing and is considered low-risk. Individuals who have credit ratings under 500 are considered high risk for loans and other financial dealings.

FICO also groups lenders together based on their overall financial history. Lenders who occasionally get behind on their bills are classified in a separate category from chronic late-payers. Prior to 2009, anyone who failed to pay on any loan whether it was an occasional issue or a chronic one was lumped together by FICO, creating an unfair credit rating for some individuals. With the changes, it helps those who have fallen behind a few times to still be able to achieve fair dealings with creditors.

However, for those chronic late payers, one of the areas which can be affected by a poor credit rating is an auto loan.

Unless you are lucky enough to have enough savings to pay cash for a vehicle and most people do not then chances are you will need to take out a loan to finance it. The new way FICO calculates its credit scores has a tremendous impact on the auto loan industry. People with only one major credit account in delinquency are likely to still have a good chance to get a fair interest rate on a loan. However, borrowers with a history of delinquent accounts will find themselves being either completely denied for a loan, or saddled with an extremely high interest rate.

A FICO score of 720-850 guarantees an annual percentage rate of no more than 6.3 percent, while those in the bottom tier of 500-589 can expect an interest rate as high as 18.5 percent. Borrowers whose credit score falls below 500 will likely be denied any kind of auto loan, even one with an extremely-high interest rate.

If you are in the market for an auto loan, the best course of action is to request your credit report and a copy of your credit score so you are aware of whether you may have difficulty in obtaining a loan. Individuals are permitted one free credit report from each of the three credit-reporting agencies annually. However, credit scores are not included and must be purchased separately.

Personal Loan or Car Loan: Which Should You Get?

There are lots of different ways to borrow money for big purchases. And for many of us, one of our biggest purchases is a vehicle. If you're buying a car, you may need to decide whether you should do ...

Published:  Sat, 10 Aug 2019 05:08:00 GMT



VW Credit, Citizens One Auto Finance, top J.D. Power dealer study of financing appeal

Editor's note: An earlier version of this story mischaracterized Volkswagen Credit's ranking in J.D. Power's 2019 U.S. Dealer Financing Satisfaction Study. J.D. Power surveys and ranks captive mass ...

Published:  Wed, 14 Aug 2019 10:26:00 GMT



$1.7M auto loan scheme lands metro Atlanta men in prison

A pair of metro Atlanta men have been sentenced for helping run an automotive financing scheme that spanned four years. Starting in 2015, the group of several men fraudulently siphoned $1.7 million ...

Published:  Fri, 16 Aug 2019 09:46:00 GMT



Buying a new car: Car finance or personal loan?

If you are looking to buy a new car, you are not short of financing options to choose from. But what does each of them offer, and what suits your needs best? Before you head to a dealer to buy your ...

Published:  Tue, 13 Aug 2019 23:42:52 GMT



KBRA Releases Monthly Auto Loan Indices for July

Kroll Bond Rating Agency (KBRA) releases its Auto Loan Indices for the month of July and reports on delinquency roll rates from asset-level disclosures. Servicer reports showed mixed results ...

Published:  Mon, 12 Aug 2019 08:29:00 GMT



UK Used Car Finance Market Insights, Historical Trends and Forecasts, 2019-2021 - ResearchAndMarkets.com

DUBLIN--(Business Wire)--The "UK Used Car Finance: Market Insight Report 2019" report has been added to ResearchAndMarkets.com's offering. This report focuses on the UK market for secured consumer ...

Published:  Fri, 16 Aug 2019 05:32:00 GMT



Tricolor Launches New, Affordable Auto Insurance for Low Income, Credit Invisible Consumers

"We are leveraging the insights gained from providing affordable, high quality vehicles and financing to underserved Hispanics to provide a lower cost alternative auto insurance option. Unlike ...

Published:  Tue, 13 Aug 2019 05:00:00 GMT



Personal loan or car loan: Which is right for me?

Look, there are loads of honest dealers who wouldn't dream of ripping you off. And some will offer you the cheapest financing you can get. But they're not all like that. And even the good ones ...

Published:  Wed, 14 Aug 2019 03:17:00 GMT



Court To Notify Wells Fargo Auto Loan Customers About A Class Action Settlement Related To Insurance Charges

SANTA ANA, Calif., Aug. 12, 2019 /PRNewswire/ -- A notification program began today, as ordered by the United States District Court for the Central District of California (the "Court"), to alert ...

Published:  Mon, 12 Aug 2019 17:11:00 GMT



Share Us!    Share TopConsumerReviews.com on Twitter Share TopConsumerReviews.com on LinkedIn Share TopConsumerReviews.com on Google+ Share TopConsumerReviews.com on Pinterest

Home      About Us      Terms & Conditions      Privacy Policy      Contact Us      Disclosure