A good credit score can get you a lower interest rate, while a poor credit score-or having no credit-can push you into the subprime category

The best rates go to those with good credit, but there are still ways to save money if your credit has room for improvement

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If you've ever financed the purchase of a car or a refrigerator, you know your credit score is important to getting a good deal.

This indicates a higher risk to the lender, so you have to pay more, adding significant finance costs on top of the purchase price.

But your credit rating may not be the only factor driving up the rate on your car loan. If you finance through the car dealer, using a lending option that they broker rather than a bank or credit union, the rate is often higher because the dealership takes a cut for acting as the middleman.

Anywhere from a fifth to a quarter of all car loans fall in the subprime category, according to analysts at TrueCar, a major online automotive marketplace that is partnered with Consumer Reports

Further, a recent study shows that car-loan rates for Black or Hispanic consumers can be higher because of bias and weak government oversight.

“Sadly, there remains discrimination in both the granting of credit and rates some consumers pay for their loans payday loans for bad credit in Huntingdon, but knowing as much as you can as soon as you can really helps,” says Alain Nana-Sinkam, vice president of strategic initiatives at TrueCar. “Having a better idea of what sort of rates you might qualify for will help you identify if you are not getting the terms you should.”

Even so, experts say there are ways to keep the rate on your car loan as low as possible. Although Consumer Reports and other auto-loan experts recommend improving your credit rating before applying for a loan, real-life circumstances don't always allow enough time to do that.