How Are Worthington, MN Auto Loan Rates Determined?
Various factors contribute to your Minnesota car loan rate, including your income, your credits core, the loan amount, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Worthington could mean a higher interest rate. But why is a high interest rate bad? The higher your interest rate is, the more you pay each month and the more you spend over the life of your loan. Just one or two percent more could mean spending hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Worthington, MN?
With tools like our Interest Rate Estimator, you can get a feel for what your rate might look like before you start applying for auto loans in Worthington, MN. If you've plugged in your information and aren't happy with the percentage you see, what steps can you take to lower it?
The loan term is one factor you have a lot of control over. Most Worthington auto loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms will tempt many borrowers because they usually mean a lower monthly payment. However, longer terms also tend to come with higher interest rates. If you can afford a bigger monthly payment, it's better to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be with different interest rates and terms to help you figure out what you might be able to afford.
If you have less than ideal credit, raising 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 the steps you can take now to raise it quickly. It may take some time and work to better your credit score, but it'll be worth it once you see those lower Minnesota auto loan rates.
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 Worthington, MN — even without the best credit or income. You don't want to go with the first offer you receive because a better one might be waiting just around the corner. Keep in mind some lenders allow for negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Find the Best Auto Loan Rates in Worthington, MN with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Worthington, MN no matter your credit score or the type of car you're buying. We'll show you up to four loans at once so you can find the perfect loan. Fill out our simple and secure online application, pick the loan that works best for you, and visit your Worthington dealer to purchase a new car. Apply now to see today's lowest interest rates!