How Are Randallstown, MD Car Loan Rates Determined?
Many factors influence your Maryland auto loan rate, including your credit score, the amount of the loan, your income, 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 Randallstown could mean a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the higher your monthly payment is and the more you spend in total. Even a rate one or two percent higher could mean spending hundreds more on interest.
Is There a Way to Lower My Randallstown Car Loan Rate?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before you complete an application for a car loan in Randallstown, MD. If you've supplied your information and are unhappy with the percentage you see, what can you do to lower it?
The loan term is one aspect you have total control over. Most Randallstown 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 have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can handle a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like depending on different interest rates and terms to help you decide what you can afford.
If your credit is less than stellar, raising your score could lower your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and which steps you can take today to bring it up quickly. It may take some time and work to better your credit score, but it's worth it to get those lower Maryland car loan rates.
Waiting to find the right lender can also help you secure a lower rate. While lenders take the same information into consideration, you'll likely receive a different interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Randallstown, MD — even if you don't have the best credit or income. You don't want to go with the first offer you receive because a better one might be waiting just around the corner. Don't forget some lenders leave room for negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
See the Best Auto Loan Rates in Randallstown, MD with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Randallstown, MD regardless of your credit score and the type of car you're buying. You can see up to four loans at once so you can find the right deal. Fill out our secure online application, select the best loan for you, and visit your Randallstown dealer to purchase a new car. Apply now to check today's lowest interest rates!