How Are Benton Harbor, MI Car Loan Rates Determined?
Several factors influence your Michigan auto loan rate, including the loan amount, your credit score, your income, the down payment, the age of the car, and your loan's term (the length of the loan). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Benton Harbor dealer could result in a higher interest rate. But why worry about a high interest rate? The higher of an interest rate you have, the higher your monthly payment is and the more you spend in total. A difference of just one or two percent could mean spending hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Benton Harbor, MI?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before you begin applying for auto loans in Benton Harbor, MI. If you've plugged in your information and are unhappy with the percentage you see, how can you lower?
The loan term is one thing you can change on your own. Most car loans in Benton Harbor have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms attract 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, choosing a shorter term is a good move. The Auto Payment Calculator estimates what your monthly payment could be with different interest rates and terms to help you see what might be affordable.
If you have less than ideal credit, improving your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and the steps you can take now to raise it quickly. 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 Michigan.
Taking some time to find the right lender can also help you achieve a lower rate. While lenders will look at 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 Benton Harbor, MI — 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. Don't forget 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 Benton Harbor, MI
myAutoloan is dedicated to helping you find the lowest car loan rates in Benton Harbor, MI no matter your credit score or the type of car you're buying. You can see up to four loans at once so you can get the right deal. Fill out our secure online application, pick the loan that works best for you, and head down to a dealer in Benton Harbor to purchase a new ride. Don't wait to apply and check today's lowest interest rates!