Calculate Your Loan Payment

What Rate Do You Qualify For?

In general, credit unions can offer lower APRs on loans than banks because they are non-profit and return their profits to their members in the form of lower rates on loans and higher rates on savings. Visit your credit union’s website to find out what their lowest available rate is. Generally speaking, you can qualify for one of the best rates if your score is above 740. Other factors are also taken into consideration, such as the length of your credit history, the number of lines of credit you have open, your payment history (whether you have paid your loans off as agreed), and the number of products/services you have with your credit union. Your credit union or dealer can help you understand more about your credit score.

What Can You Afford?

To determine what monthly payment you can afford, the first step is to sit down and seriously consider your income and your monthly expenses. Look at your net income, which is your take-home pay after taxes. Also consider additional sources of income. Then take a look at your expenses.

Groceries, medical bills, credit card payments, gas/electric, cell phone, home phone, internet access, garbage … those are some of the payments you need to consider. What many people forget about are the expenses that pop up once or twice a year, but those can add up. Do you wear glasses or contacts? Take what you pay for that each year and divide by 12 to find out what you should set aside each month for glasses or contacts. Are you planning a vacation? Make sure you account for travel, entertainment, and special events as well. Then you’ll have a good idea of what you can afford each month on a car payment.