What Determines Your Auto Loan Rate in Bemidji, MN?
A handful of factors contribute to your Minnesota auto loan rate, including the loan amount, your credit score, your income, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Bemidji dealership could mean a higher interest rate. But is a high interest rate so bad? The higher your interest rate gets, the higher your monthly bill is and the more you spend in total. Even a rate one or two percent higher could mean spending hundreds more overall.
Can I Lower My Car Loan Rate in Bemidji, MN?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might be before having to apply for a car loan in Bemidji, MN. If you've filled out your information and are unhappy with the percentage you see, how can you lower?
The loan term is one factor you have a lot of control over. Most Bemidji auto loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms will tempt many borrowers because they usually have a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can afford a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be with different interest rates and terms to help you decide what you might be able to afford.
If your credit is far from great, increasing 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 the steps you can take now to raise it quickly. It may take some effort and time to increase your credit score, but it's worth it to get those lower Minnesota car loan rates.
Waiting to find the right lender can also help you snag a lower rate. While lenders will look at the same information, you won't see the same interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Bemidji, MN — even without the best credit or income. You don't want to choose the first offer you get because there could be a better one right around the corner. And, some lenders will negotiate, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Discover the Best Auto Loan Rates in Bemidji, MN with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Bemidji, MN no matter your credit score or the type of car you're buying. You can look at up to four loans at once so you can find the best deal. Fill out our simple and secure online application, choose the loan that looks best to you, and head to your Bemidji dealer to purchase a new ride. Apply now to see today's lowest interest rates!