How Are Arlington Heights, IL Car Loan Rates Determined?
Various factors affect your Illinois car loan rate, including your credit score, the amount of the loan, 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 Arlington Heights dealer could result in a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the higher your monthly payment becomes 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 Arlington Heights Car Loan Rate?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might be before you begin applying for auto loans in Arlington Heights, IL. If you've put in your information and are unhappy with the percentage you see, how can you lower?
The loan term is one thing you have total control over. Most Arlington Heights auto loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms will tempt many borrowers because the monthly payment is usually lower. But longer terms are also likely to come with higher interest rates. If you can afford a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment depending on different interest rates and terms to help you determine what might be affordable.
If your credit is less than stellar, increasing your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and which steps you can take to bring it up fast. Your credit score may take some more time and work, but it'll be worth it once you see those lower Illinois auto loan rates.
Putting effort into finding the right lender can also help you achieve a lower rate. While lenders will use the same information, you won't receive the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Arlington Heights, IL — even without a high income or credit score. You shouldn't go with the first offer you receive because there might be a better one just around the corner. Don't forget some lenders allow for negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Discover the Best Auto Loan Rates in Arlington Heights, IL with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Arlington Heights, IL regardless of your credit score and the type of car you're buying. You can see up to four loans at once so you can get the right deal. Fill out our secure online application, choose the best loan for you, and head to your Arlington Heights dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!