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Used Cars » How to Get the Best Rates

How to Improve your Interest Rate

As you can see from the sample rate sheets below lenders vary their car loan interest rates based on your credit score and the age of the vehicle. Some lenders use mileage instead of age. So regardless of your credit score, your are likely to get the best auto loan interest rate with a brand new car when compared to an older vehicle with high mileage.

Year & Terms Sample Credit Union Rates
Model Year Terms Titanium
740+
Platinum
700 - 739
Diamond
660 - 699
Gold
620 - 659
Silver
580 - 619
Bronze
540 - 579
2010 & Newer 1-60
61-72
73-84
1.99%
2.49%
2.99%
2.49%
2.99%
3.49%
3.49%
4.19%
4.69%
7.29%
7.79%
N/A
12.99%
16.99%
N/A
16.29%
N/A
N/A
2009 1-60
61-72
73-84
1.99%
2.49%
2.99%
2.59%
3.29%
3.79%
3.89%
4.49%
5.19%
7.39%
8.39%
N/A
13.89%
17.89%
N/A
16.79%
N/A
N/A
2008 1-60
61-72
73-75
2.39%
2.89%
3.39%
3.09%
3.59%
4.09%
4.49%
5.19%
5.69%
7.69%
8.69%
N/A
14.39%
N/A
N/A
16.99%
N/A
N/A
2007 1-60
61-72
3.09%
3.59%
3.89%
4.39%
5.29%
6.29%
7.79%
8.79%
14.49%
N/A
17.09%
N/A
2006 1-60 3.69% 4.39% 6.39% 9.29% 14.59% 19.99%
2005 1-48 3.99% 4.69% 6.69% 9.59% 14.69% 19.99%
2004 1-36
37-48
5.49%
6.99%
6.19%
7.69%
8.19%
9.69%
11.09%
12.59%
14.99%
16.49%
19.99%
19.99%

Once you found your dream car it is impossible to change its model year, or its mileage. One thing that is in your control is your credit score. Improving your credit score will result in you saving hundreds to thousands of dollars during the length of your auto loan.

In addition to saving money on your car loan, a higher credit score will save you money on credit card and insurance rates. If you're looking for a new job, you should be aware that many employers are now checking credit reports.

Sample Subprime Rates & Terms
Year A B C D
2013 12.50 14.25 17.00 18.00
2012 12.50 14.25 17.00 18.00
2011 13.50 15.75 18.50 20.50
2010 13.75 16.50 18.75 21.25
2009 14.00 17.00 20.00 23.00
2008 15.75 17.75 21.00 24.50
2007 16.50 18.50 21.75 25.00
2006 16.50 18.50 21.75 25.00

How Much is Your Credit Score Costing You?

The following example is based on an auto finance amount of $15,000. When comparing a 750 credit score with a 500 credit score you will see that a person with a 500 credit score will pay an additional $132.28 each month and over $5,000 over the length of the loan.

Sample Credit Score Cost (based on a $15k finance)
Credit
Score
Loan
Term
Sample
Rate
Payment Total of
Payments
Monthly Credit
Score Cost
Total Credit
Score Cost
750 72 2.50% $224.57 $16,168.70 $0 $0
725 72 3.50% $231.28 $16,651.87 $6.71 $483.16
700 72 4.00% $234.68 $16,896.80 $10.11 $728.09
675 72 5.00% $241.57 $17,393.33 $17.01 $1,224.62
650 72 6.00% $248.59 $17,898.72 $24.03 $1,730.01
625 72 7.00% $255.74 $18,412.93 $31.17 $2,244.22
600 72 8.00% $263.00 $18,935.90 $38.43 $2,767.20
575 72 9.00% $270.38 $19,467.58 $45.82 $3,298.88
550 60 11.00% $326.14 $19,568.18 $101.57 $3,399.48
525 60 13.00% $341.30 $20,477.77 $116.73 $4,309.06
500 60 15.00% $356.85 $21,410.94 $132.28 $5,242.23
475 60 17.00% $372.79 $22,367.32 $148.22 $6,198.61
450 48 19.00% $448.50 $21,528.09 $223.94 $5,359.38
425 48 21.00% $464.49 $22,295.30 $239.92 $6,126.60
400 48 23.00% $480.77 $23,077.06 $256.21 $6,908.35
None 48 25.00% $497.36 $23,873.13 $272.79 $7,704.43

How to Improve Your Credit Score

It is true that getting a new auto loan and making all the payments on time will improve your credit score a bit, but that takes a long time. It will also take a long time for negative items to fall off your credit report.

Since nearly 80% of all credit reports have errors on them, the first step to improving your interest rate is to review your credit report and score. Once you have reviewed the report and identified the errors on your credit report initiate disputes with all three reporting agencies.

There are two ways to do this. You can either do it yourself, or hire a professional law firm to help you out.

For those who choose to go it alone, we've included links so you can initiate an online dispute with each of the three credit porting agencies.


Benefits of Using a Law Firm to Improve Your Score

If you've ever tried to quit smoking or lose weight you know how difficult it can be if you go it alone. The same holds true for improving your credit score. More often than not, a professional law firm will identify more items to dispute than you will. They also know the best way to dispute specific items on your credit report. Using a professional firm will improve your chances of getting negative items removed from your credit report.

When most of us hear the term Law Firm, we think Expensive. Believe it or not, hiring a law firm to help improve your credit score is not that expensive, especially when you compare it to the amount of money you're over paying each month due to a low credit score. Click Here to Receive a No Obligation Quote or Call (888) 286-5211 for a Free Legal Consultation


If You're Happy with Your Credit Score

Select one of the scores below to view used cars and payment options.

If your credit score is less than 625, we recommend that you request an auto loan before shopping online for a used car. When people apply before they buy, they lock in low rates for 30 days.