What Determines Your Auto Loan Rate in O Fallon, MO?
Several factors contribute to your Missouri auto loan rate, including the loan amount, your credit score, your income, the down payment, the age of the car, and your loan's term (the length of the loan). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in O Fallon could mean a higher interest rate. But why is a high interest rate bad? The higher your interest rate is, the higher your monthly payment becomes and the more you spend over the term of your loan. Even a rate one or two percent higher could mean you spend hundreds more on interest.
Is There a Way to Lower My O Fallon Car Loan Rate?
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 O Fallon, MO. If you've plugged in your information and don't like the percentage you see, what can be done to lower it?
The loan term is one factor you have total control over. Most O Fallon 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 the monthly payment is usually lower. But longer terms are also likely to come with higher interest rates. If you can handle a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator estimates what your monthly payment could be based on different interest rates and terms to help you figure out what might be affordable.
If you have less than ideal credit, boosting your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and how you can quickly bring it up. It may take some effort and time to increase your credit score, but it'll be worth it once you see those lower Missouri auto loan rates.
Taking the time to hunt down the right lender can also help you secure a lower rate. While lenders take the same information into consideration, you won't receive the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in O Fallon, MO — even without a high income or credit score. You don't want to go with the first offer you receive because there could be a better one right around the corner. Don't forget some lenders are open to negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Discover the Best Auto Loan Rates in O Fallon, MO with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in O Fallon, MO 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 find the right deal. Fill out our secure online application, choose the loan that looks best to you, and visit your O Fallon dealer to purchase a new car. Apply today to see the current lowest interest rates!