Best Auto Loans
Click on any of these items to see their review
Our professional reviewers evaluate products and services independently, but Top Consumer Reviews may earn money when you click on the links on our pages. Learn more.
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.
Auto Loans In The News
Auditor General Edward Ouko when he appeared before the Senate County Public and Investment Committee at County Hall, Nairobi on Wednesday 24/04/19. [Boniface Okendo,Standard] A host of county ...
Published: Sun, 19 May 2019 14:00:00 GMT
NORFOLK, Va. - A federal jury convicted a Chesapeake man on May 16 for charges of credit union fraudand aggravated identity theft. Court records and evidence presented at trial stated that ...
Published: Sun, 19 May 2019 16:49:00 GMT
A Pakistani immigrant who thought he was just buying a car ended up with a $780,000 medallion loan that left him unable to pay rent. A Bangladeshi immigrant said he was told to lie about his income on ...
Published: Sun, 19 May 2019 19:58:00 GMT
Amazon is leading a $575 million funding round for Deliveroo, taking the total the food delivery firm has raised to date up to $1.53 billion. Huawei says that it has been preparing for the "insane" ...
Published: Fri, 17 May 2019 05:01:00 GMT
truck or SUV - especially if you negotiate hard on the price of the new car and then apply these deals." 2019 Kia Sorento 0% financing for 66 months plus $2,000 bonus cash 2019 Chrysler Pacifica 0% ...
Published: Sun, 19 May 2019 21:04:00 GMT
The largest credit union in St. Louis often finds itself having to explain to people what it is. First Community Credit Union had $2.2 billion in deposits and more than 300,000 members at the end of ...
Published: Fri, 17 May 2019 03:00:00 GMT
PHOENIX (AP) - A newly formed coalition that includes faith, consumer and civil rights groups has filed an initiative that would cap the interest charged on auto title loans. The group known as ...
Published: Thu, 16 May 2019 15:37:00 GMT
NORFOLK, Va. - A federal jury on Thursday convicted a Chesapeake man on charges of credit union fraud and aggravated identity theft. Prosecutors said 25-year-old Adante Leshaun Dupree took part in a ...
Published: Thu, 16 May 2019 17:44:00 GMT
READ NOW: Google is scanning your Gmail inbox to keep a detailed list of your purchases, and there's no easy way to erase it (GOOGL, GOOG) » ...
Published: Fri, 17 May 2019 15:08:00 GMT
MUMBAI: In an attempt to incentivise the shift to green vehicles, SBI has cut rates on auto loans for purchase of electric cars. Borrowers will get a discount of 20 basis points on the interest they ...
Published: Mon, 29 Apr 2019 09:40:00 GMT
- View Desktop Site -
Reproduction in whole or in part in any form without the express written consent of TopConsumerReviews.com, LLC is strictly prohibited.