How Are St Charles, IL Car Loan Rates Determined?
Many factors impact your Illinois auto loan interest rate, including your credit score, the amount of the loan, your income, the car's age, the down payment, and the length of the loan (your loan's term). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your St Charles dealer could result in a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the more you pay each month 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 Get a Lower Car Loan Interest in St Charles, IL?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might look like before you complete an application for a car loan in St Charles, IL. If you've supplied your information and don't like the percentage you see, what can be done to lower it?
The loan term is one thing you can control. Most St Charles car loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers are drawn in by longer terms because they usually mean a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can afford a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payment might be based on different interest rates and terms to help you decide what you might be able to afford.
If your credit is less than stellar, improving your score could help lower your interest rate. Use our Guide to Better Credit for Auto Financing to better understand 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's worth it to get those lower Illinois car loan rates.
Taking some time to find the right lender can also help you snag a lower rate. While lenders will consider the same information, you won't receive the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in St Charles, IL — even without the best credit or income. You shouldn't automatically choose the first offer you get because a better one could be right around the corner. Keep in mind some lenders are open to negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Use myAutoloan to Check the Best Auto Loan Rates in St Charles, IL
myAutoloan wants to help you find the lowest auto loan rates in St Charles, IL no matter what type of car 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 loan that looks best to you, and head down to a dealer in St Charles to purchase a new ride. Apply now to check today's lowest interest rates!