How Are Bloomington, MN Car Loan Rates Determined?
A handful of factors influence your Minnesota auto loan interest 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 Bloomington dealership might lead to a higher interest rate. But why worry about a high interest rate? The higher your interest rate gets, the more you pay each month and the more you spend over the life of your loan. Even a rate one or two percent higher could mean you spend hundreds more on interest.
Can I Lower My Car Loan Rate in Bloomington, MN?
With tools like our Interest Rate Estimator, you can get a feel for what your rate might look like before you begin applying for auto loans in Bloomington, MN. If you've plugged in your information and aren't happy with the percentage you see, what can be done to lower it?
The loan term is one element you can control. Most car loans in Bloomington 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, longer terms also tend to come with higher interest rates. If your budget allows for a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be depending on different interest rates and terms to help you determine what might work for your budget.
If you have less than ideal credit, raising your score could lower your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and how you can quickly bring it up. Your credit score may take some more time and work, but it's all worth it for getting those lower auto loan rates in Minnesota.
Taking the time to hunt down the right lender can also help you get a lower rate. While lenders will look at the same information, each one might give you a different interest rate. Shopping around and comparing offers will help you find the best auto loan rate in Bloomington, MN — even if you don't have the highest income or best credit. You don't want to go with the first offer you receive because a better one might be waiting just around the corner. And, some lenders will negotiate, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in Bloomington, MN
myAutoloan is dedicated to helping you find the lowest car loan rates in Bloomington, MN 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 best deal. Fill out our simple and secure online application, choose the best loan for you, and visit your Bloomington dealer to purchase a new car. Apply now to check today's lowest interest rates!