Car loans for people with excellent credit ratings are a lot more competitive than car loans for people with less than perfect credit histories. When deciding if they are going to lend you money, and if so how much and at what arte, lenders use credit ratings to work out how much of a risk the customer potentially offers.
If your credit rating shows that you have missed payments, got into arrears or have had a CCJ against you, the lenders will be much more cautious– offering high interest rates and possibly attaching large fees and penalties if you do not keep to the loan agreement to cover the risk factor. But when looking at offering car loans for people with excellent credit ratings, lenders will be confident in that person's ability to pay the money back and will often try and entice them into taking a loan out with them by offering:
- Low interest rates
- Flexible repayment options
- Repayments holidays and introductory deals i.e. no repayments for the first 3 months, or 0% APR for a limited time
If you have an excellent credit rating, there will be plenty of car loans available to you – make sure you shop around to find the most competitive deal. You can use our free online car loan comparison tool to do this.