How Are Car Loan Rates in Springfield, IL Calculated?
A handful of factors contribute to your Illinois car loan rate, including your income, your credits core, the loan amount, 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 Springfield could mean a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the higher your monthly payment becomes and the more you spend over the term of your loan. Just one or two percent more could mean spending hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Springfield, IL?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before you start applying for auto loans in Springfield, IL. If you've plugged in your information and aren't liking the percentage you see, how can you lower?
The loan term is one factor you can control. Most Springfield car loans 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 tend to also 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 estimates what your monthly payment could be with different terms and interest rates to help you figure out what you might be able to afford.
If your credit is less than stellar, increasing 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. Your credit score may take some more time and work, but it'll be worth it once you see those lower Illinois auto loan rates.
Putting effort into finding the right lender can also help you achieve a lower rate. While lenders will look at the same information, you won't receive the same interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Springfield, IL — even if you don't have the best credit or income. You don't want to choose the first offer you get because there might be a better one just around the corner. Plus, some lenders will negotiate, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in Springfield, IL
myAutoloan wants to help you find the lowest auto loan rates in Springfield, IL no matter what type of car you're buying or your credit score. We'll show you up to four loans at once so you can find the best deal. Complete our secure online application, select the best loan for you, and head down to a dealer in Springfield to purchase a new ride. Apply now to check today's lowest interest rates!