No one jumps for joy at the prospect of a high-interest car loan, so we're not surprised when drivers who apply to the Mazda finance department here at Tumminia Mazda ask about securing financing with a lower APR. There are actually a few ways for drivers to secure favorable loan terms and save some money.
Raise Your Credit Score
This is one of the best ways to get better loan terms. Your credit score is one of the first things that a potential lender looks at when you apply for a loan. As a rule, a higher credit score opens the door to better terms and a lower APR on your loan.
However, that score is determined by a few different factors. Understanding them lets you leverage them to your advantage.
- Accounts with a long history and on-time payments
- No new or recent debts incurred
- A low rate of credit utilization
If you’re applying for a loan, avoid hard credit pulls and late payments. If you have the opportunity to pay down debt, take it. And avoid opening a new line of credit close to the time you’ll initiate a car loan or lease.
Look for a Co-Signer
If your credit score is low, bringing on a co-signer can help you secure better loan terms. Your co-signer guarantees the loan, signaling that they’ll be responsible for the loan if you default. This could potentially mean a lower APR for your car loan.
What if I Already Have a Loan?
Sometimes a driver finances a new Mazda car and then improves their credit score over the next few years. If that describes you, you may be eligible to refinance your car at a better APR. Our Mazda financing team is happy to work with you if that's the case.
Trustworthy Car Financing Advice in Olathe, KS
If you're ready to finance a new vehicle of your own, visit our Mazda dealers in Olathe, KS. We're ready to answer any questions that you have about Mazda financing and car loans.
