Tips to cut down on your Car Loan Interest Rate

Investing in a car is the second largest investment any individual ever makes in his or her life after a house. Many of us always finance our car dreams through a car loan. However, amid-st the excitement of getting a new car we really don't try to look into the intricacies of different finances associated with it.

Do you know with few calculations and alterations you can cut down on the premium you pay for the car insurance and also the rate of interest liable on the loan you have borrowed. We list down few tips to take into consideration on how to reduce your car loan rate of interest.

Keep your credit score in check

It is very important to know your credit score. It is one of the first thing lenders take a look at when lending you money. Also, accordingly define the rate of interest over your car loan. Therefore, higher your credit score, lower will be your rate of interest.

If you feel just paying off your debt is all enough to keep your credit score good, then wait and have a keen look. It is also important to pay your debts on time. For instance, a delay of even 30 days is taken into consideration.

Shop around

Do not stick to just one bank or non-banking institution to provide you with your car loan. It is very important to shop around and look for options provided by few in the market. Look for the rate of interest applied by few institutions based on your credit score and accordingly take your call.

Bargain with your existing loan holder

It is always advisable to go with your existing loan provider. However, if you are getting a car loan at a lower rate of interest, then bargain with your loan provider and discuss the offers you are getting from other banks and non-banking institutions.

Finally, choose the institution that provides you the lowest rate of interest and a convenient mode of payment.