How Are Chicago, IL Auto Loan Rates Determined?
A handful of factors contribute to your Illinois car loan rate, including your income, your credits core, the loan amount, the age of the car, the down payment, 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 Chicago dealer could lead to a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the higher your monthly bill is and the more you spend over the term of your loan. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Chicago, IL?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before you begin applying for auto loans in Chicago, IL. If you've put in your information and don't like the percentage you see, how can you lower?
The loan term is one aspect you have a lot of control over. Most car loans in Chicago have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms will tempt many borrowers because they usually have a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can afford a bigger monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like with different terms and interest rates to help you determine what you can afford.
If you have less than stellar credit, increasing your score could decrease your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and which steps you can take today to bring it up quickly. It may take some effort and time to increase your credit score, but it's worth it for those lower Illinois auto loan rates.
Putting effort into finding the right lender can also help you get a lower rate. While lenders will consider the same information, you won't receive the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Chicago, IL — even if you don't have the highest income or best credit. 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 will negotiate, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Discover the Best Auto Loan Rates in Chicago, IL with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Chicago, IL no matter what type of car you're buying or your credit score. You can see up to four loans at once so you can find the perfect loan. Complete our secure online application, select the best loan for you, and head to your Chicago dealer to purchase a new ride. Apply now to check today's lowest interest rates!