Save Thousands When You Borrow Car loans Mortgages So how will your effort for learning about good credit pay off? You will save money on the largest purchases. We will explain how to save money on a car loan. Let's say you have a car picked out and you have just graduated from school. Lets say it costs $12,000. Most people concentrate on negotiating with the car dealer on price but forget to shop for the financing. Sometimes cheaper financing can be found outside of the dealership. In fact, you'd be surprised at how much interest rates vary. Usually interest rates are listed in your local newspaper. We took a copy of a local paper and compared rates. Here's how they look:   Bank #1 Bank #2 Bank #3 Bank #4 Interest 12.5% 9.10% 8.25% 6.75% Term 60 60 60 60 Payment $269.98 $249.98 $244.76 $236.20 Car loans compared: Case study $12,000 automobile with different interest rates. Pretty neat huh? It's mindboggling the amount of money that you can save. Mortgages hold even more potential for savings because the principal is larger and the term is longer. You can use a payment calculator as we did for the car loan example to compare. Good luck. The law helps you avoid the typical pitfalls students fall into. See our pitfalls section above for more examples.   Take a Look at our Top Ten Credit Tips Copyright 1989-2005 United College Marketing Service. All Rights Reserved.