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When it comes to a subprime vehicle loan, it is meant for a borrower having a poor credit scoreand a blemish credit report. As per records of 2010, such kind of financing accounts for 20percent of vehicle loan which was just 17 percent in the year 2009. Car shoppers, whose creditscore is 670 or below can opt for a subprime car loan. In this article, we are going you talk aboutthe ways you can lessen the cost of such a loan. Let’s read on to learn more.

Your credit score plays a very crucial role in deciding the loan type and the rate. Be it a goodrating or poor, it’s the snapshot of your financial situation. It is that vital information that youmust have before you go for car shopping because customers with a healthy score can benefit interms of a good loan rate, as well. You can get to know about your credit rating from severalonline sites free of cost. There are other websites, as well, that charge a nominal fee of $10 oreven less. You can look for credit bureaus such as Transunion, Experian and Equifax. These aregood places to look for.

When you are applying for subprimesubprimesubprimesubprime autoautoautoauto loansloansloansloans, it is your responsibility to challenge anyuntrue report provided by any of the credit bureaus. If you find there are mistakes in the record,you have all the right to contest such inaccurate information. This is especially true for thosewho need to lessen the negative information on their payment history.

Once a customer is aware of his score, he can start looking for ways to improve it. Clearing olddues and paying utility bills on time are some of the things you can consider.

There can be several negative elements in your report. These include:

� Problems in clearing off old debts� Possession of home or car due to failed payments� Bankruptcy� Accounts in collection

If any of the above are found in your report, ascertain which of them can be fixed in a shortperiod of time. For example, if there are some small balances reported by any collection agency,try paying them off to improve your credit rating. Again, if an insignificant amount is due as faras your credit card statement is concerned; make such payments without any delay. These littlethings matter and will help you in improving your score. It will convince the carcarcarcar loanloanloanloan companythat you are serious when it comes to making timely payments. To get better rates, all you needto do is to improve your credit profile.

The last but not the least is making a substantial down payment. Though most of the onlinelenders have zero down payment options, as well, but making at least 20 percent payment incash will help in speedy approval of your application. When you pay 20 percent or more in cash,it helps you get a fair rate instead of a subprime rate.

What are your thoughts on this subject? Please feel free to comment.

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