What Determines Your Auto Loan Rate in Clarendon Hills, IL?
Many factors affect your Illinois auto loan interest rate, including the loan amount, your credit score, your income, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Clarendon Hills could lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate is, the higher your monthly payment is and the more you spend in total. Even a rate one or two percent higher could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Clarendon Hills, IL?
You can use tools like our Interest Rate Estimator to get a feel for what your rate might look like before you begin applying for auto loans in Clarendon Hills, IL. If you've supplied your information and don't like the percentage you see, how can you lower?
The loan term is one element you have total control over. Most Clarendon Hills auto loans have terms in 12-month increments between 24 months (2 years) and 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 handle a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be depending on different interest rates and terms to help you determine what you can afford.
If your credit is less than stellar, raising your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and how you can quickly bring it up. It may take some effort and time to increase 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 get a lower rate. While lenders will consider the same information, you won't see the same interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Clarendon Hills, IL — even if you don't have the highest income or best credit. You don't want to choose the first offer you get because a better one could be right around the corner. Don't forget some lenders are open to negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
See the Best Auto Loan Rates in Clarendon Hills, IL with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Clarendon Hills, IL regardless of your credit score and the type of car you're buying. We'll present you with up to four loans at once so you can find the perfect loan. Fill out our secure online application, select the best loan for you, and visit your Clarendon Hills dealer to purchase a new car. Apply now to see today's lowest interest rates!