Car Loans First - Car Financing

Car Loan Rate Calculator - Pre Quailify

Use the car loan calculator below to estimate the amount you can finance .

1.)Select a credit profile

Good Credit

700

Fair Credit

625

Sub Prime Credit

575

Bad Credit

525

Really Bad or No Score

NA

2.) Enter monthly income

Monthly Income before taxes:

3.) Enter monthly re-occurring debts

Rent or Mortgage:

Min. Card Payments:

Garnishments:

Other Loan Payments:
(Exclude utility bills and Car Loan)

Qualified Auto Loan Amount*

Enter your postal code:

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Car Financing

For the majority of consumers, a vehicle purchase represents the second most expensive financial outlay (behind a home) they’ll ever make. With that in mind, we have a few suggestions that, if you follow them, could save you hundreds of dollars on car financing.

The first step in the car financing process is to check your credit file and know your credit score. What’s the difference, you say? Your credit file is your complete credit history, at least for the last seven years. The FICO score is sort of the Cliff Notes of your credit report – distilling all that information down into a three digit number that tells lenders how you will pay back a loan. There are a number of services, some owned by the credit bureaus themselves that will, for a monthly fee, furnish you with a free credit report and FICO score.

You are also entitled, by law, to receive a free credit report from each of the three major credit bureaus (TransUnion, Equifax and Experian) once a year. By timing these reports so that you receive one from a different bureau every four months, you can cover the entire year at no charge. While these reports will not contain a FICO score, there are a number of web sites that will furnish your FICO score to you at any time for no charge. One of the best of those is called CreditKarma.com.

The next step in the car loans process, if possible, is to arrange for financing in advance. By comparing the interest rates at local banks and credit unions, you’ll have a good idea of what the current market rates are. Getting pre-approved for a loan means that this is one item that can be kept out of the negotiating process at the dealership. If the dealer offers you a better rate you can take it. If not, you have your pre-approval to fall back on.

We also used the term "if possible" because sometimes you can’t make this kind of arrangement. If your credit score is in the subprime range, banks and credit unions, as a rule, will not finance you. At the same time, finding a subprime lender to arrange financing in advance can be very difficult (most of these lenders only work through car dealers and not directly with customers).