How Are Cloquet, MN Auto Loan Rates Determined?
A handful of factors impact your Minnesota auto loan interest rate, including your credit score, the amount of the loan, 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 Cloquet dealership might lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate is, the more you pay each month and the more you spend in total. Just one or two percent more could mean spending hundreds more on interest.
Is There a Way to Lower My Cloquet Car Loan Rate?
You can use tools like our Interest Rate Estimator to get a feel for what your rate could be before you start applying for auto loans in Cloquet, MN. If you've filled out your information and are unhappy with the percentage you see, what steps can you take to lower it?
The loan term is one thing you can control. Most auto loans in Cloquet have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers are drawn in by longer terms because they usually mean a lower monthly payment. 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 shows what your monthly payment might be with different terms and interest rates to help you figure out what might work for your budget.
If you have less than ideal credit, boosting your score could help 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. Your credit score will take some effort and time to build, but it'll be worth it once you see those lower Minnesota auto loan rates.
Taking the time to hunt down the right lender can also help you get a lower rate. While lenders take the same information into consideration, you won't see the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Cloquet, MN — even without a high income or credit score. You shouldn't go with the first offer you receive because there might be a better one just around the corner. Don't forget some lenders will negotiate, 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 Cloquet, MN with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Cloquet, MN regardless of your credit score and the type of car you're buying. We'll present you with up to four loans at once so you can get the right deal. Complete our secure online application, choose the loan that looks best to you, and head to your Cloquet dealer to purchase a new ride. Apply now to check today's lowest interest rates!