How Are Car Loan Rates in McHenry, IL Calculated?
Several factors influence your Illinois car loan interest rate, including your credit score, the amount of the loan, your income, 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 McHenry dealership could result in a higher interest rate. But is a high interest rate so bad? The higher of an interest rate you have, the higher your monthly bill is and the more you spend over your loan’s term. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in McHenry, IL?
You can use tools like our Interest Rate Estimator to get a feel for what your rate could be before you complete an application for a car loan in McHenry, IL. If you've filled out your information and are unhappy with the percentage you see, what can be done to lower it?
The loan term is one factor you can control. Most car loans in McHenry are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms will tempt many borrowers because they usually mean a lower monthly payment. But longer terms are also likely to 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 shows what your monthly payment might be with different interest rates and terms to help you determine what might work for your budget.
If you have less than ideal credit, boosting your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score 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's worth it to get those lower Illinois car 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. It's important to shop around and compare offers to find the best car loan rate in McHenry, 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 might be waiting just around the corner. And, some lenders are open to 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 McHenry, IL with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in McHenry, IL no matter your credit score or the type of car you're buying. You can look at up to four loans at once so you can find the right deal. Simply complete our secure online application, choose the best loan for you, and head down to a dealer in McHenry to purchase a new ride. Apply now to see today's lowest interest rates!