What Determines Your Auto Loan Rate in Rainbow City, AL?
A handful of factors influence your Alabama car loan interest rate, including the loan amount, your credit score, your income, the down payment, the age of the car, and your loan's term (the length of the loan). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Rainbow City dealer could lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate is, the higher your monthly bill is and the more you spend over your loan’s term. A difference of just one or two percent could mean spending hundreds more on interest.
Is There a Way to Lower My Rainbow City Car Loan Rate?
You can use tools like our Interest Rate Estimator to get a feel for what your rate could be before you complete an application for a car loan in Rainbow City, AL. If you've supplied your information and aren't liking the percentage you see, what can you do to lower it?
The loan term is one thing you have a lot of control over. Most Rainbow City auto loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers take longer terms because they usually have a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can handle a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator estimates what your monthly payment could be with different terms and interest rates to help you decide what you might be able to afford.
If your credit is less than stellar, boosting your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and the steps you can take now to raise it quickly. Your credit score may take some more time and work, but it's all worth it for getting those lower auto loan rates in Alabama.
Taking some time to find the right lender can also help you snag a lower rate. While lenders will use the same information, each one might give you a different interest rate. It's important to shop around and compare offers to find the best car loan rate in Rainbow City, AL — even without a high income or credit score. You shouldn't go with the first offer you receive because a better one could be right around the corner. Plus, some lenders are open to negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
See the Best Auto Loan Rates in Rainbow City, AL with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Rainbow City, AL no matter your credit score or the type of car you're buying. We'll present you with up to four loans at once so you can get the right deal. Fill out our simple and secure online application, choose the loan that looks best to you, and head to your Rainbow City dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!