How Are Car Loan Rates in Arkansas City, KS Calculated?
A handful of factors affect your Kansas car loan interest rate, including your income, your credits core, the loan amount, the age of the car, the down payment, and your loan's term (the length of the loan). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Arkansas City could lead to a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the higher your monthly payment is and the more you spend over the life of your loan. A difference of just one or two percent could mean you spend hundreds more on interest.
Is There a Way to Lower My Arkansas City Car Loan Rate?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might look like before having to apply for a car loan in Arkansas City, KS. If you've supplied your information and don't like the percentage you see, what steps can you take to lower it?
The loan term is one element you can change on your own. Most Arkansas City auto loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Many borrowers take longer terms because the monthly payment is usually lower. But longer terms tend to also 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 payments might look like based on different interest rates and terms to help you figure out what might work for your budget.
If your credit is far from great, boosting your score could lower 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. It may take some time and work to better your credit score, but it's all worth it for getting those lower auto loan rates in Kansas.
Putting effort into finding the right lender can also help you snag a lower rate. While lenders will consider the same information, you'll likely receive a different interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Arkansas City, KS — even without a high income or credit score. You don't want to choose the first offer you get because a better one might be waiting just around the corner. Don't forget some lenders will negotiate, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Discover the Best Auto Loan Rates in Arkansas City, KS with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Arkansas City, KS 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. Simply complete our secure online application, pick the loan that works best for you, and head down to a dealer in Arkansas City to purchase a new ride. Apply today to see the current lowest interest rates!