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Credit history is divided into different zones depending on the credit scores of every individual. If the scores are above 600 or 700, then the credit history is said to be a good one. If the scores drop below 400, then the credit history falls into bad credit category. The credit scores in between these two are classified as fair credit. Individuals in fair credit zone will have a consistent credit history for the past few years, with only one or two missed payments or late payments. People who have improved scores from a bad credit history to a good credit also fall under the fair credit category.

While fair credit history is not a very bad position it does not mean an excellent credit score either. Therefore, it is not the most desirable position to be in, when it comes to applying for loans of any kind. It is not impossible to obtain loans with a fair credit history, but more often than not, people having a fair credit history end up paying slightly higher interest for the loan they borrow.

While purchasing a car, applying for automobile loans is mandatory in most of the cases. For people with fair credit history, a little more research is required, to obtain the best interest rates for the car loans. Having a low interest loan is essential element in maintaining good scores, and saving some money.

If there are financing options available through the dealer, then negotiating for a better interest rate is necessary. Substantiating the credibility with other documents like employee record, or rental record or recommendations from previous money lenders if any, will help in getting better rates for the loan. Also, inquiring at local banks and local loan companies can give better options in terms of interest rates. A comparison can be made on the internet about different loan companies and the interest rates they offer.

Another option for people with fair credit to explore is online deals for car loans. These days, many loan companies operate online and offer auto loans with better interest rates, especially for people with fair credit. Online operation can significantly reduce processing costs too, saving some money for borrowers.

Fair credit history is better than bad credit history, so options available are not limited, when it comes to loans. But, careful comparison and thorough research is the key to obtain loans with low interest rates.