Every time you turn on the television to a financial network you hear how low mortgage
interest rates are. Home buyers with good credit can easily get rates below 5%, which
is historically low. But what about other consumer loans? Are all interest rates going
down?
Interest rates are largely a product of consumer credit risk, credit scores and credit
reports. If you’ve got great credit you can expect to pay lower rates than those people
who have poor credit. Auto loans are no different.
If you’ve got credit scores above 720 the average interest rate on an auto loan is a
shade over 3.5%. And, 3.5% is if you are buying a car using indirect lenders rather
than a captive lender. An indirect lender is a lender who has relationships with auto
dealerships. A captive lender is a lender who represents the manufacturer. Ford Motor
Credit, Honda Finance, Toyota Motor Credit, and GMAC are all example of captive auto
lenders.
With the right credit scores you can expect much better deals from captive lenders. In
fact, you could even drive away with a 0% loan, depending on the make and model of
your car. Even if you choose a more popular model of car a captive lender will usually
beat an indirect lender’s deal. 3.5%, not bad, but what about credit cards?
Credit cards have bucked the trend. Interest rates on credit cards are going up, not
down. In fact, the average interest rate on a credit card is between 13-15%, depending
on whom you believe. You can certainly do better, and much worse.
Consumers who have solid credit can find 0% balance transfer and no interest on
purchase deals all over the place right now. But, those deals are for no longer than 18
month, normally. The rates after the promotional period expires are considerably higher.
Credit unions remain a solid choice for consumers looking for low rate credit cards. You
can expect to pay between 9-12% on a credit card from a credit union. Their credit limits
will be lower, on average, than those extended by the mega banks but if you’re a modest
user of plastic then it’s a better choice.
Michael B. Citron is an internationally known public speaker and author. He lectures for professional associations worldwide. Michael is a serial entrepreneur who is dedicated to living the American dream, and helping others to do the same. His role at DisputeSuite.com has placed him in the spotlight of the credit repair industry. DisputeSuite is the largest provider of technology and education services to the industry, and has been a catalyst in the forward movement to standardize the credit repair industry.
P.S. DisputeSuite provides a variety of solutions for your credit repair business. From engaging custom websites, to dispute processing services, to a robust CRM with automations and portals, DisputeSuite is a One-Stop Shop to making your Credit Repair Business A Success! Let’s chat today to discover the best plan for you: 727-877-6812 or support@disputesuite.com
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