What’s a Good Down Payment on a Car?
Putting more money down on your purchase reduces how much you owe and decreases the risk associated with your loan. As a result, making a
sizeable down payment on the purchase could result in a lower interest rate.
How Fast Will a Car Loan Raise My Credit Score?
Most car buyers will experience a temporary reduction in their credit score after taking out an auto loan. Buying a new or used car with a loan can
raise your credit score over the life of the loan, as long as you make on-time monthly loan payments.
How Much Will a Car Loan Drop My Credit Score?
Shopping for auto loan rates within a 14-day period will ensure that multiple inquiries are counted as only one inquiry or excluded entirely by some scoring systems, according to the credit bureau
Experian. However, this can still cause a
small reduction in credit score. Accepting a loan offer may cause another small score dip. A credit score will rise as on-time monthly loan payments are made.
Does Paying Off Your Car Loan Early Hurt Your Credit Score?
Paying off your car loan early may hurt your credit score, but the effects are usually only temporary. Some lenders charge a loan prepayment penalty, so ask your lender if there are prepayment fees, before you
pay off your car loan early. CU SoCal does not charge a prepayment penalty on any loan.
Pros And Cons of Leasing vs. Buying A Car
There are cost differences associated with
leasing vs. buying a car, and these will be influenced by the term of a loan or a lease, how much money you put down, the interest rate you qualify for, and the value of the car. Buying a car gives you the freedom to drive unlimited miles and eventually own the car. Leasing is a great option for people who prefer to drive a new car every few years and don’t mind a mileage limitation.
How Can I Pay Off My Car Loan Early?
Paying off a car loan early can save you money in interest you’d otherwise be paying. The sooner you pay off your car loan, the more money you’ll have each month. Not skipping any payments and making
one large extra payment every year can help you pay off your loan early. Before you pay off your loan, ask your lender if they charge a pre-payment penalty.
Pros & Cons of Buying a New Car: Is Buying a New Car Really Worth It?
Buying a new car feels great and you’ll have the peace of mind of driving a reliable vehicle. The
benefits of buying a new car include the latest safety and fuel efficiency technologies. However, all these technological goodies come at cost. That’s why many individuals purchase certified pre-owned cars instead, as they can be less expensive.
Will Refinancing My Car Loan Hurt My Credit Score?
Refinancing a car loan can save your money if you can get a lower interest rate. The first step of
auto refinancing is to talk to different lenders about rates and loan terms. CU SoCal saves Members money every day through vehicle loan refinancing, and will drop your rate from another lender by at least 2%. If approved for a loan refinance, the remaining amount you owe on your first loan will be paid off and you will start making payments on the new loan. A small drop in credit score is likely, but most score increase as on-time monthly loan repayments are made.
Learn more.
How Can I Save For a Car?
With a thorough plan in place,
saving up for a car isn't as complicated as you might think. Some actions you can take include creating a budget and a savings and purchase timeline, deciding on the type and make of car, and calculating an approximate monthly payment are all good ways to start saving.
How Can I Refinance My Car Loan?
Refinancing a car loan provides several advantages, including a lower interest rate, a lower monthly payment, and more. However, be aware that some financial institutions will charge prepayment or other fees for refinancing your car loan. And, if your new loan has a longer term, you may end up paying more for your car than if you just stuck with the original lender. CU SoCal will lower your vehicle loan rate from another lender by at least 2%. Learn more.
Get Started on Your Auto Loan!