Annual Percentage Rate (APR) is the annualized interest rate on your loan. A lower APR may or may not lower your monthly payment but it will lower the total cost of the loan over the lifetime of payments. And making your agreed upon payments on time and in full will improve your credit score over time. And a higher credit score will in turn lower the APR available to you which in turn lowers your total cost of repaying a loan over time.

Before applying for a car loan you are encouraged to check your credit score and collect your income documents. This will help you to get the best APR and payment schedule that is right for you. The time you take to repay a loan may also affect the APR that is offered to you. Shorter loans may offer lower APR’s than longer term loans. Say taking a 36 month loan versus a 60 month loan.

You can apply for online for a low APR loan but the best way to get a low APR on your loan is to have a high credit score. There are several services that will offer you a free credit report once per year.