What Determines Your Auto Loan Rate in Benton, KY?
A handful of factors affect your Kentucky auto 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, poor credit score, or choosing an older vehicle at your Benton dealership could lead to a higher interest rate. But why worry about a high interest rate? The higher your interest rate is, the higher your monthly payment is and the more you spend over the life of your loan. Just one or two percent more could mean spending hundreds more overall.
Is There a Way to Lower My Benton Car Loan Rate?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might be before having to apply for a car loan in Benton, KY. If you've put in your information and aren't happy with the percentage you see, what can be done to lower it?
The loan term is one thing you can change on your own. Most car loans in Benton have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms will tempt many borrowers because the monthly payment is usually lower. But longer terms tend to also come with higher interest rates. If you can afford a bigger monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be depending on different interest rates and terms to help you figure out what you can afford.
If your credit is less than stellar, increasing your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and which steps you can take today to bring it up quickly. It may take some effort and time to increase your credit score, but it's worth it for those lower Kentucky auto loan rates.
Taking some time to find the right lender can also help you get a lower rate. While lenders take the same information into consideration, 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 Benton, KY — even without the best credit or income. You shouldn't automatically choose the first offer you get because there might be a better one just around the corner. Keep in mind some lenders allow for negotiation, 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 Benton, KY
myAutoloan is here to help you get the lowest auto loan rates in Benton, KY 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. Fill out our simple and secure online application, select the best loan for you, and purchase a new ride from your {City}} dealer. Apply now to see today's lowest interest rates!