Overhaulin'

Used car interest rates? How does credit affect interest rates?

Does your credit rating affect the interest rate on a used car loan?

Public Comments

1. Your credit rating affects the interest rate on any loan. Used cars are a unique category however as the dealers can, and often do, inflate the interest to earn additional profit. If you think the dealer is charging you too much try to get the loan from a bank.
2. you credit history which is what affects your credit rate..affects everything you do..car insurance and loans..its actually better to have revolving credit with small balances for a few months than to just have open accounts with no balances we are going thru this right now
3. Almost every lender uses your credit score to determine your rate. The higher your credit score, the better rate you will get on your loan. Many lenders charge a little higher rate for used cars but I've noticed on my last couple of loans through my credit union that they no longer care if the car is new or used. All they care about is the value of the car and my credit score. Normally, scores above 720 get the best rates, scores between 680 and 719 pay average rates, and scores below 680 get the higher rates. Good Luck!