What Determines Your Auto Loan Rate in Carol Stream, IL?
Various factors impact your Illinois auto loan interest 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, low credit score, or purchasing an older car from a dealer in Carol Stream could lead to a higher interest rate. But why worry about a high interest rate? The higher your interest rate gets, the higher your monthly bill is and the more you spend over your loan’s term. Even a rate one or two percent higher could mean you spend hundreds more on interest.
How Do I Lower My Auto Loan Rate in Carol Stream, IL?
You can use tools like our Interest Rate Estimator to get a feel for what your rate might look like before having to apply for a car loan in Carol Stream, IL. If you've put in your information and are unhappy with the percentage you see, what steps can you take to lower it?
The loan term is one aspect you can change on your own. Most Carol Stream car loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers are drawn in by longer terms because they typically have a lower monthly payment. But longer terms tend to also come with higher interest rates. If your budget allows for a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be depending on different interest rates and terms to help you figure out what you can afford.
If you have less than ideal credit, improving your score could lower your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and which steps you can take today to bring it up quickly. It may take some time and work to better your credit score, but it'll be worth it once you see those lower Illinois auto loan rates.
Taking some time to find the right lender can also help you achieve a lower rate. While lenders will look at 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 Carol Stream, IL — even without a high income or credit score. You don't want to go with the first offer you receive because a better one could be right around the corner. Don't forget some lenders leave room 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 Carol Stream, IL with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Carol Stream, IL regardless of your credit score and the type of car you're buying. You can look at up to four loans at once so you can find the perfect loan. Fill out our simple and secure online application, choose the loan that looks best to you, and visit your Carol Stream dealer to purchase a new car. Apply today to see the current lowest interest rates!