What Determines Your Auto Loan Rate in Hopkins, MN?
Several factors influence your Minnesota auto loan interest rate, Including your credit score, your income, the amount of the loan, the car's age, the down payment, and the length of the loan (your loan's term). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Hopkins dealer could result in a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the higher your monthly bill is and the more you spend over the term of your loan. Just one or two percent more could mean spending hundreds more on interest.
Is There a Way to Lower My Hopkins Car Loan Rate?
With tools like our Interest Rate Estimator, you can get a feel for what your rate might look like before you complete an application for a car loan in Hopkins, MN. 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 factor you can change on your own. Most auto loans in Hopkins are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms attract many borrowers because they typically 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, choosing a shorter term is a good move. The Auto Payment Calculator shows your possible monthly payment with different terms and interest rates to help you determine what might be affordable.
If you have less than ideal credit, improving your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and how you can quickly bring it up. 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 Minnesota.
Taking the time to hunt down the right lender can also help you achieve a lower rate. While lenders take the same information into consideration, each one might give you a different interest rate. It's important to shop around and compare offers to find the best car loan rate in Hopkins, MN — even if you don't have the best credit or income. You don't want to go with the first offer you receive because there could be a better one right around the corner. Keep in mind some lenders are open to negotiation, 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 Hopkins, MN with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Hopkins, MN no matter what type of car you're buying or your credit score. You can see up to four loans at once so you can get the right deal. Fill out our secure online application, choose the loan that looks best to you, and head to your Hopkins dealer to purchase a new ride. Apply now to check today's lowest interest rates!