 TITLE: How to Trade In a Car CONTENT: Your Credit Score Is Another Good Way to Reduce Your Payment\n------------------------------------------------------------\nTrading in your car can decrease your monthly payment on a new auto loan significantly. But depending on the value of the vehicle, having good credit may be even better. Your credit score is an important factor in a lender's decision to approve your application and determine your interest rate.\nIf you have excellent credit, you'll typically get approved for a loan with single-digit interest rates. But if your credit is poor, you could end up with a much higher rate, which can be upwards of 20%.\nCheck your credit score before you start the car-buying process to determine where you stand. If your credit needs work and you're not in a rush to get a new car, take some time to address areas of your credit file that are hurting your score.\nThat can include getting caught up on past-due payments, paying down credit card balances and disputing any inaccuracies on your credit reports. Also, take steps to develop good credit habits, such as keeping your credit card balances low and avoiding unnecessary credit applications.\nThis process of improving your credit can take time, but your efforts could end up saving you hundreds or even thousands of dollars in interest. END