Car Loan Quotes From LendingTree
If you’re like most people, a new car will only come if you take out a car loan. While you could take the dealership up on its offer for a line of credit to purchase the vehicle, you may suspect you can get a better deal elsewhere — and you’re probably right. You’ve heard from a friend that they recently got a great rate by searching for an auto loan through LendingTree, and you’re curious as to whether or not you should use it to find a loan of your own. Should you?
LendingTree and How It Works
Think of it like a matchmaking service. In contrast to a traditional loan from a financial institution, LendingTree lets you shop around. It is an online exchange that allows you to compare rates for loans from different partners they work with — banks, lenders, and credit partners.
LendingTree is not a financial institution and does not make loans themselves — rather, the service they provide is a convenient brokerage hub for finding loans. LendingTree was founded in 1998 and has facilitated more than 32 million loan requests since.
Reason to Use LendingTree
If you’re going out of town and want to stay in a hotel, chances are — if you are a savvy traveler — that you’ve used a travel fare aggregator site to find the best deal. When you’re shopping for a big investment like an auto loan, the stakes are even higher — the difference between the terms of different loans won’t necessarily make or break your financial future, but the right loan could definitely save you several thousand dollars over the life of your loan. Many people find the aggregation service LendingTree provides to be useful because it makes shopping for loans a little easier.
The Process to Get a Quote
It takes about 4 minutes to answer the short survey needed to see car insurance rates once you've provided your name, current address, income, assets, and the type of car you’re buying in addition to information on how much you’d like to be lent and the amount of down payment you can afford to make.
The only risk you take when using LendingTree to look up loans is that your credit score will be penalized — and this is only a possibility if you’re doing a lot of searching for financing in a short amount of time.
In an ideal universe, we’d make all of our credit card payments on time and never carry a balance, have a high income, and not borrow very much money. However, life is not perfect, and chances are, neither is your credit score. If you have another means of reliable transportation and do not need to buy a new car right away, it is definitely a good idea to focus on paying down the balance of your other debts, making payments on time, saving up for a downpayment on your vehicle, and improving your credit score.
If you really can’t wait to buy a new set of wheels, don’t despair — there are still things you can do to get a car loan with bad credit. Try to find the most affordable vehicle you can that will still safely get you where you need to go. Consider asking a friend or relative who is more financially stable to co-finance your loan. If all else fails, though you will definitely pay a higher interest rate, there will likely still be financial institutions who provide loans to “riskier” people with low credit scores — and LendingTree can often connect you with these companies through their site.
It depends on so, so many things. As of mid-July 2017, the average car loan for a 60-month loan to purchase a new car came with an interest rate of close to 4.48 percent, and the average credit score for new car purchases was 714, according to Bankrate.com.
According to LendingTree, if your credit score is 695 and you’re looking to take out a $25,000 60-month loan, your interest rate could be as low as 3.19 percent — a savings of nearly $1,000 over the 5-year term of your auto loan.
However, as you know, an advertisement claiming your rate could be “as low as” is much different from an advertisement claiming your rate will be “as low as”. Like with any other type of loan, the better your credit score, the better your offered interest rate will be because people with higher credit scores are always viewed as “less risky”.