Sun 29 Jan 2012
You may already be aware that interest rates for auto loans are higher when the borrower has a bad credit rating or low credit score. Depending on your financial position and the lender that you choose to use, this rate increase may make a small or large difference in the amount of your monthly car payment. From a lender’s point of view, it all comes down to risk. The factors that increase the risk of loan default contribute to a higher rate. Those factors that reduce the risk, result in a lower rate. There are several factors that lenders take into account when reviewing your application and approving your loan.