What Determines Your Auto Loan Rate in Park Ridge, IL?
A handful of factors impact your Illinois auto loan interest rate, including the loan amount, your credit score, your income, the down payment, your loan's term (the length of the loan), and the car's age. A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Park Ridge might lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate is, 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 you spend hundreds more on interest.
Can I Lower My Car Loan Rate in Park Ridge, IL?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before having to apply for a car loan in Park Ridge, 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 Park Ridge auto loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms attract many borrowers because they usually mean a lower monthly payment. But longer terms tend to also come with higher interest rates. If your budget allows for a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be based on different interest rates and terms to help you see what you might be able to afford.
If you have less than stellar credit, increasing your score could lower 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 to bring it up fast. Your credit score may take some more time and work, but it's all worth it for getting those lower auto loan rates in Illinois.
Taking some time to find the right lender can also help you secure a lower rate. While lenders will use the same information, you'll likely receive a different interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Park Ridge, 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 there could be a better one right around the corner. Plus, some lenders are open to negotiation, 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 Park Ridge, IL with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Park Ridge, IL regardless of your credit score and the type of car you're buying. We'll show you up to four loans at once so you can find the best deal. Fill out our secure online application, select the best loan for you, and purchase a new ride from your {City}} dealer. Don't wait to apply and check today's lowest interest rates!