Lower or ideal interest rates on car loans are not only for people who have good credit score and history but also possible for those who have a bad credit score and history. When an independent lender is found before hand applying for a car loan with best interest rates can be easy. Usually car dealers and financing firms have a deal between them and offer high interest rates and costs to the borrower. This is avoided when an independent lender is found. The borrower can get both reasonable rate and low cost loans through such independent lenders. Internet enables the process of obtaining quotes from various sites and companies without even applying for a car loan. Depending on the estimation given by various lenders, the borrower can choose the best interest rates among them.

Car loan term also plays an important role in the raise and lowering of the interest rates. When the car loan term is more the interest rates will be higher, when the car loan term is less the interest rate will be lower. According to the car loan guide, new car fetches a better rate than a used car. Purchase of car from reputed dealer with also get a best rate for the borrower. When down payments are made even of small amounts, it will fetch a discount and will qualify for a lower interest rate on the car loan. Also when the equity of the car is established, the level of risk of the car loan drops down drastically. Car loan guide informs the borrower about the Interest rates being lowered for those who have good repayment record.

Monitoring his credit rating by the borrower will help him in securing an ideal car loan. Credit rating with blemishes to may result in a high interest rate. When the borrower raises his scores even by twenty to thirty points also it will make a big difference in the interest rates of the car loan.

Car loan guide suggests to people with bad credit to have a co-signer with a good credit history and score. Normally lenders offer lower rate of interest to people with good credit as they are very sure of the repayment. The people with bad credit too can make use of this and get a co signer with a good credit history to secure low interest loans.

When looking for the best car loans, it is very important to know the prime rate as suggested by the car loan guide. Normally, prime interest rates are set by the federal government and accordingly lenders have their car loans based on that. This means that when the prime rate is low the interest on the car loans are low and vice versa. Hence a good look at the interest rates will be of real help before shopping for an ideal rate. When the interest rates are high, the borrower hardly gets a lower car loan rate.