In uncertain times, reducing the burden of your loans can be a lifesaver. Lowering your auto loan rates allows you to enjoy your new vehicle without impeding your ability to pay other bills and loan payments, meaning nearly anyone can benefit from doing so. It’s never too early – or too late – to take steps to help your loan rates and finances.
Maintain Good Credit
Your credit score lets lenders evaluate the financial risk of providing you with a loan. With a higher credit score comes lower perceived risk and, therefore, a lower APR on your lease or loan. How can you do this?
- Pay bills on time every time
- Be mindful of your credit utilization (the percentage of your credit used)
- Pay down debt before taking on a new loan
- Monitor your credit report for fraudulent items
- Don’t take out loans or perform hard credit checks too close to an auto lease or loan
Increase Your Loan Term
If your finances have improved but your credit score hasn’t yet caught up, there’s a way to get a lower monthly payment even if your interest rates remain slightly higher. Taking on a longer loan term spreads out and lowers payments. However, you should be aware that this will cost more over the life of the loan.
Refinance Your Loan
Like your credit score, interest rates are not set in stone. A drop in interest rates or an improvement in your credit score may be an opportunity to refinance at a better rate. The only caveat is that you must be in good standing with your lender and willing to shoulder the refinancing costs.
Lincoln Financing in Omaha, NE
If you are ready to regain control of your loan payments, contact the Woodhouse Lincoln finance center today. One of our finance officers will be happy to review options with you. Our patrons deserve to drive the vehicle they want, so let us help you secure generous and fair auto loan terms.
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