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Citi May Offer Lowest Auto Loan

By Sally Maison
Published: Tuesday, November 24th, 2009

The lowest auto loan rate is what any consumer would like to have, especially on car loans. Consumers know that having a car is a necessity, but experts tell them that having an excellent credit score is very important as well. With Citi’s anticipated offers, car enthusiasts will be more encouraged to work on their credit rating.

Citi May Offer Lowest Auto LoanSpecialists note that Citi is among the banks which have the most number of financial services. Like any other creditor, it will offer only its best interest rates to consumers who are considered the least risky to deal with. This “riskiness,” according to industry experts, is summarized through a three-digit number called a credit score. The higher a credit rating is, the lower the interest a consumer gets whether he applies for a car, home, or personal loan.

Consumers who saw their credit score drop during the recession are expected to get higher interest rates the next time they apply for a loan. Experts say they can only make their financial situation better if they work on their credit rating. One of their most recommended ways of improving a rating is by making sure that all the bills are paid on time and in full. Specialists add that this could take a lot of time, months or even years, but it is the one proven way to improve a score. Consumer are warned against credit repair firms promising to improve their rating since they charge very high fees and, most often, would not do as they promise.

Experts tell consumers that the smartest way to start improving a credit score is by knowing first what their rating is. They explained that a FICO score, the most widely used consumer scoring model, ranges from 300 to 850. One usually has to pay $20 to know what his score is but experts say the money consumers will spend on knowing their rating is all worth it. Finance advisers note that many people keep on racking debt up without even knowing what their poor rating is costing them.

Once they already know their credit score, consumers are advised to write it and keep it on their wallet. Their rating will help consumers decide whether or not it is the right time to avail a car loan or just let Citi’s offer pass by.

Experts remind consumers that it is not worth to avail tempting loan offers when they will be paying very high interest rates. They conclude that the present economy and financial struggles has brought the spirit of American consumers down but living lean could bring them peace of mind in today’s society.

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