What Determines Your Auto Loan Rate in Schaumburg, IL?
Various factors contribute to your Illinois auto loan interest 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 Schaumburg dealer might lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate, the more you pay each month and the more you spend over the term of your loan. Even a rate one or two percent higher could mean spending hundreds more on interest.
Can I Lower My Car Loan Rate in Schaumburg, IL?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate could be before having to apply for a car loan in Schaumburg, IL. If you've put in your information and aren't happy with the percentage you see, what can you do to lower it?
The loan term is one aspect you can change on your own. Most Schaumburg auto loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms attract many borrowers because they usually have a lower monthly payment. However, longer terms also tend to 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 your possible monthly payment based on different interest rates and terms to help you determine what you might be able to afford.
If your credit is far from great, 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 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 achieve a lower rate. While lenders take the same information into consideration, each one might give you a different interest rate. Shopping around and comparing offers will help you find the best auto loan rate in Schaumburg, IL — even without the best credit or income. You shouldn't automatically choose the first offer you get because there could be a better one right around the corner. Don't forget some lenders will negotiate, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Discover the Best Auto Loan Rates in Schaumburg, IL with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Schaumburg, IL regardless of your credit score and the type of car you're buying. You can look at up to four loans at once so you can find the right deal. Complete our secure online application, select the best loan for you, and head down to a dealer in Schaumburg to purchase a new ride. Apply now to see today's lowest interest rates!