Understanding Your Vehicle Loan

If you’re like most Americans, you will need to finance a new vehicle. If your credit score has taken a hit due to recent world events, you may need to pay a higher percentage rate on your loan.

You can review your data and your credit score with a request to a national credit rating agency. Raising your credit score is possible, but it takes time. If you need a car immediately, you may have to get help from another borrower to serve as a co-signer.

Most dealerships or manufacturers that offer financing need to charge the APR plus percentage points. A low credit score means more points, or a higher total interest. If you don’t have time to tackle raising your credit score, it may be time to ask someone to serve as your co-signer. A co-signer will have to pay off the debt if you can’t. Your co-signer will also have a lower borrowing power until you pay the debt down.