The first step in finding a cheap car loan is to be proactive about your credit and pull your credit report. Any lender that you may work with is going to pull your credit report immediately before offering interest rates and payment plans, so this should be your first step as well. When viewing your credit report look for the following items immediately:

• Discrepancies: Accidents happen and mistakes can be made, but they can also be corrected. Look for mistakes on your credit report that may be adversely affecting your credit score. This can include information on your report about other individuals with a similar name, payments that aren’t credited, or payments that are credit as late when they were paid on time.
• Late payments: Lenders won’t deny you simply because you have late payments, but several late payments or those marked as 60-day late payments will hurt your lending credibility.
• Excessive credit: Some lenders will view the presence of excessive unused credit as a bad thing. If this appears on your report, act quickly to cancel credit cards you no longer use. Ensure that these cards are marked “closed by consumer request” to avoid setting off red flags in the minds of lenders.

Once you have an understanding of your credit, thoroughly research the cars you are interested in and determine which vehicles best fit your financial standing. Everyone wants to have a fabulous car, but not everyone can afford the car of their dreams. Extra research like this will put you in the driver’s seat when it comes to finding a cheap car loan because you will have an idea of not only how much the car of your dreams will cost, but it also gives you an idea of the monthly payments and interest rates you will face.

Now it’s time to shop around for the best loans and rates available. Loan rates can fluctuate greatly based upon lender, region, and an individual’s credit score. There can also be a big difference between auto loan rates depending on whether or not you are considering a new vehicle or a used vehicle. Generally speaking the interest rates on new car loans are lower than those on used car loans. Other factors will play into the search for a cheap car loan such as the length of the loan.

After taking all the above into consideration, sit down and crunch some numbers to find out where the best cheap car loan is available. Don’t forget to take into consideration other factors such as:

• The value of a trade-in
• Amount of down payment you can afford

Both of these factors will lower the amount of the purchase you need to finance, making it possible to find a cheaper car loan. Never be afraid to bide your time and research rates on a daily basis. Currently, the average interest rates available are:

• 3.8% for a 36 month loan on a new car
• 3.91% for a 48 month loan on a new car
• 4.8% for a 36 month loan on a used car
• 4.81% for a 48 month loan on a used car

After completing all these steps you will have a good idea how much you need to finance, how much of a monthly payment you can afford, and will be ready to secure a cheap car loan before finalizing anything with a dealer. The best thing to do at this point is to seek out the assistance of independent websites like Cheapcarloan.com. Websites like this offer consumers the chance to apply and compare rates from several lenders in one place. Best of all, it can all be done from the comfort of your home and applications can be reviewed and accepted in less than 24 hours.

Finding a cheap car loan may seem like a daunting or even impossible task, but it doesn’t have to be difficult or even painful. A little bit of extra effort can go a long way in helping find the cheapest car loan possible. Understanding your financial situation is also a crucial step in securing a good loan. Taking the time to do some research, combined with the help of sites like Cheapcarloans.com, can help make the car buying process a breeze for anyone.