How Are Champaign, IL Car Loan Rates Determined?
Several factors impact your Illinois car loan interest rate, Including your credit score, your income, the amount of the loan, the age of the car, the down payment, and your loan's term (the length of the loan). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Champaign dealership could mean a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the higher your monthly payment is and the more you spend over the term of your loan. Even a rate one or two percent higher could mean spending hundreds more overall.
How Can I Get a Lower Car Loan Rate in Champaign, IL?
With tools like our Interest Rate Estimator, you can get a feel for what your rate could be before you start applying for auto loans in Champaign, IL. If you've filled out your information and aren't liking the percentage you see, what steps can you take to lower it?
The loan term is one element you can control. Most Champaign car loans 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 usually mean 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 wise to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be with different interest rates and terms to help you determine what you can afford.
If your credit is less than stellar, increasing your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and how you can quickly bring it up. It may take some time and work to better your credit score, but it's worth it for 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 use the same information, each one might give you a different interest rate. You need to compare offers and shop around for the best auto loan rate in Champaign, IL — even without the best credit or income. You don't want to 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 Champaign, IL with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Champaign, IL 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 perfect loan. Simply complete our secure online application, choose the loan that looks best to you, and visit your Champaign dealer to purchase a new car. Apply today to see the current lowest interest rates!