Credit Repair Update: Getting Low-Interest Auto Loans With Better Credit

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Photo of woman in a brand new car financed with a low-interest auto loan

Hey there! I wanted to share an update on my credit repair journey with Lexington Law. I’ve been working with them since July 2020 to improve my credit score because my ultimate goal was to secure an auto loan with a low-interest rate on a new car. In my last blog post, I talked about my recent car purchase and included 10 tips to negotiate with dealerships for the best deal on a vehicle, but for this post, I want to discuss the impact that a good credit score can have when you purchase a vehicle.

As I shopped around for cars, I spent a lot of time comparing car loans with varying interest rates. I know what you might be thinking – isn’t it more important to focus on amassing a down payment? Although that’s certainly an important factor, I wanted to secure the lowest interest rate on a car loan because I wanted the bulk of my monthly payments to go towards as much of my principal as possible instead of the interest. While having a sizeable down payment helps prevent you from being upside-down on your car loan, you can further prevent this by also getting a loan with low interest.

According to USNews.com, the average auto loan rates as of September 2020 look as such:

Credit ScoreNew Car LoanUsed Car LoanRefinance Car Loan
750 or higher5.07%5.32%4.06%
700-7496.02%6.27%4.65%
600-69911.40%11.65%7.15%
451-59916.46%16.71%12.49%
450 or lowern/an/an/a

This information was taken from USNews.com. Rates were supplied by their partner, MyAutoloan. These rates are for illustrative purposes only. Your individual car loan rate will vary.

Note that the lower your interest rate is, the higher it becomes. I have heard that a score of 750 or higher can even get you as low as 2 or 3% if you shop around enough. With these scores on the table, can you see why I wound up delaying my purchase? It was worth the wait!

Shopping for new vehicles with a low-interest auto loan

Since July 2020, my credit score has gone up almost 100 points – that’s 5 months! With that pushing me into the higher credit score brackets that have significantly lower interest rates and monthly payments on auto loans, I finally felt ready to pull the trigger and purchase. Although I was a bit distraught to have accelerated the car-buying process quicker than I expected, it was a relief to see that focusing on increasing my credit score will give me better odds of securing a better car loan.

Another bonus of having a higher credit score is not getting lower loan interest rates but also a lower monthly payment. If you can get both things in your favor, it’ll be a much quicker journey to paying off your auto loan – especially if you plan on paying more than your minimum monthly payment (I always recommend this!).

Millions of Americans are unable to qualify for car loans due to inaccurate or unfair negative items on their credit, but those things can be corrected. And although you could do this yourself, the process can be long and confusing when you don’t work with a professional. Over time, the credit repair industry has grown exponentially, which has made too much inaccurate information accessible to the public. If you don’t know much about credit repair, you may find yourself without the proper knowledge or resources to get your credit where it needs to be. Working with Lexington Law for the past few months has made the process pain-free and nearly hands-off for me! 

Woman shopping at a car dealership for a new car

Lexington Law helps you navigate the complex consumer protection laws that allow you to dispute inaccurate items on your credit reports with credit bureaus. Like I mentioned in my previous post, my Lexington Law consultant told me one of my credit cards had a “charge-off,” which means a debt has gone unpaid for over 6 months and the creditor has given up trying to collect the money, so they report it as a charge-off on your credit report. This was an inaccurate report, as it referred to the one and only late payment I’d ever made (it was only a day late, too!), so my consultant wrote the creditor a letter to the creditor contesting the charge-off, and after about a month or two it was removed from my report. This one item alone boosted my credit score quite a bit, and coupled with paying down my credit card debt, my score has gone up significantly in just 5 months!

Working with Lexington Law has made the credit repair process a breeze. Since they are the oldest and most respected name in credit repair, they have the legal knowledge and expertise to help you. And because they also have long-standing relationships with all three credit bureaus, their team is able to get you closer to your goals with impressive efficiency.

If you’re interested in embarking on your own credit repair journey, I have news for you! I’m working with Lexington Law Firm to give select followers support from their experienced team! We’ll follow along for 6 months as you work on building your credit. The services will be comped by Lexington Law Firm, who will help identify questionable negative items hurting your score, and build a custom game plan for you. They’ll also challenge the bureaus and your creditors to help make your credit report accurate and fair. This opportunity is open to U.S. residents who feel their current score is less-than-ideal, no matter their situation or reason.

If you think you could benefit from this, fill out this form here by March 1, and let us know a little about your current credit situation and goals. We’ll notify you if you’ve been selected by March 1. Participants must be U.S. residents. They will not be required to endorse  Lexington Law Firm unless they had a genuinely positive experience.

Are you thinking about buying a car or getting a home loan anytime soon? Are you worried about your credit score? Let’s chat in the comments below! Don’t forget to subscribe to my newsletter and follow me on Instagram for more money-making lifestyle, fashion and beauty tips.

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Thank you Lexington Law Firm for sponsoring this post. A high service partner and consumer advocate that will help you fight for the credit you deserve!

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