How Are Hodgkins, IL Car Loan Rates Determined?
Many factors contribute to your Illinois auto loan rate, including your income, your credits core, the loan amount, 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 Hodgkins dealer could result in a higher interest rate. But why worry about a high interest rate? The higher your interest rate gets, the higher your monthly payment is and the more you spend in total. A difference of one or two percent might not seem like much, but it could mean spending hundreds more overall.
Is There a Way to Lower My Hodgkins Car Loan Rate?
With tools like our Interest Rate Estimator, you can get a feel for what your rate might look like before you start applying for auto loans in Hodgkins, 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 have total control over. Most car loans in Hodgkins are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers take longer terms because the monthly payment is usually lower. However, a longer term also tends to come with a higher interest rate. If your budget allows for a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment depending on different interest rates and terms to help you figure out what you might be able to afford.
If you have less than stellar credit, raising your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and the steps you can take now to raise it 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 achieve a lower rate. While lenders will use the same information, you'll likely receive a different interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Hodgkins, IL — even if you don't have the best credit or income. You shouldn't automatically choose the first offer you get because there might be a better one just around the corner. Keep in mind some lenders leave room for negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
See the Best Auto Loan Rates in Hodgkins, IL with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Hodgkins, IL regardless of what type of vehicle you're buying or your credit score. We'll present you with up to four loans at once so you can find the perfect loan. Complete our secure online application, choose the best loan for you, and head down to a dealer in Hodgkins to purchase a new ride. Apply today to see the current lowest interest rates!