California Banking Rates

How Your Credit Score Affects Auto Loan Rates

You’ve probably wondered why you hear so much about having good credit and good credit scores. Well, it’s a huge factor in your financial life.  It determines how much money you’ll spend on items now and in the future. If you’re in the market for a new car, your auto loan rate should be at the forefront of your mind.

California Auto Loans

As with any type of loan, having a high credit score will help you secure the lowest rates on your auto loan. Make regular, on-time payments to your credit card accounts and keep your balance low compared to your credit limit and it is likely that banks and lenders will increase your limit and offer you a more competitive interest rate.

Your Credit Score

Lenders like to see high limits with low balances, because it demonstrates you are trustworthy and responsible with your spending, credit and time management. If you have a low credit score, especially lower than 600, you may want to quickly get a copy of your credit report and see where you can improve your score.