| Although a car refinance calculator will seldom ask you | | | | taking on when lending money to a particular borrower. |
| to tell it what kind of credit you have, it's important to | | | | The score range is 300-850. The higher the score, the |
| know the answer to this question when you run into | | | | more you are seen as able to repay a loan. Therefore, |
| the ones that do ask you this question. Why? The | | | | lenders will be more apt to loan you money or |
| interest rates, and therefore the costs, of any | | | | refinance your current loans, and reward you with |
| particular car loan can swing widely between each | | | | lower interest rates. There are many credit reporting |
| credit rating. For example, did you know that a person | | | | agencies that can give you access to this information. |
| with bad credit can pay up to two times (and maybe | | | | The cost will run you anywhere between fifteen and |
| even more) the average interest rate on a car loan? | | | | twenty-five dollars. It's a small price to pay for such |
| On the opposite end, a person with excellent credit | | | | valuable information. |
| can pay as much as fifty percent below the average | | | | Numbers vary across different sources, but in general, |
| interest rate on a car loan. Answering this question | | | | Any FICO credit score below 680 is considered below |
| wrong can throw all the figures off and you'll be in for | | | | average, or bad. If you fall into this category, your |
| a big surprise when you finally decide to refinance your | | | | interest rate will be 1.5 - 2 times the average interest |
| car loans. | | | | rate, IF you qualify for refinancing. A score below 550 |
| To make things worse, a car refinance calculator will | | | | by the way, will probably disqualify you from any |
| often ask a vague question, such as 'is your credit | | | | financing. A FICO credit score between 680 and 740 |
| good, excellent, or bad?' But what constitutes these | | | | is considered average to good, and your interest rate |
| three classes? Knowing your FICO credit score is | | | | will be at or near the market. If your credit score is |
| probably the best way to approach this question. The | | | | above 740, you can select "Excellent" (highest rating) |
| FICO credit score, by the way, is the most widely used | | | | from the car refinance calculator, and you will see the |
| method of measuring how much risk a creditor is | | | | interest rate figure drop a couple points... |