What Determines Your Auto Loan Rate in Fairbanks, AK?
Several factors influence your Alaska car loan rate, including your credit score, the amount of the loan, your income, the down payment, your loan's term (the length of the loan), and the car's age. A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Fairbanks dealership might lead to a higher interest rate. But why worry about a high interest rate? The higher your interest rate gets, the higher your monthly payment becomes and the more you spend over your loan’s term. Just one or two percent more could mean spending hundreds more overall.
How Do I Get a Lower Car Loan Interest in Fairbanks, AK?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might look like before you begin applying for auto loans in Fairbanks, AK. If you've put in your information and are unhappy with the percentage you see, what can you do to lower it?
The loan term is one element you can control. Most auto loans in Fairbanks are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms attract many borrowers because they typically have a lower monthly payment. However, longer terms also tend to come with higher interest rates. If you can afford a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be based on different interest rates and terms to help you see what might be affordable.
If your credit is less than stellar, increasing your score could help lower your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and how you can quickly bring it up. Your credit score may take some more time and work, but it's worth it to get those lower Alaska car loan rates.
Waiting to find the right lender can also help you get a lower rate. While lenders take the same information into consideration, you'll likely receive a different interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Fairbanks, AK — even if you don't have the best credit or income. You don't want to go with the first offer you receive because a better one might be waiting just around the corner. Plus, some lenders will negotiate, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in Fairbanks, AK
myAutoloan is dedicated to helping you find the lowest car loan rates in Fairbanks, AK no matter your credit score or the type of car you're buying. We'll show you up to four loans at once so you can find the best deal. Complete our secure online application, pick the loan that works best for you, and visit your Fairbanks dealer to purchase a new car. Don't wait to apply and check today's lowest interest rates!