What Determines Your Auto Loan Rate in Billings, MT?
A handful of factors affect your Montana car loan interest rate, including your credit score, the amount of the loan, your income, the age of the car, the down payment, 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 Billings could lead to a higher interest rate. But why worry about a high interest rate? The higher of an interest rate you have, the higher your monthly payment is and the more you spend over the life of your loan. Just one or two percent more could mean you spend hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Billings, MT?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might be before having to apply for a car loan in Billings, MT. If you've supplied 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 car loans in Billings have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms will tempt many borrowers because they typically have a lower monthly payment. But longer terms are also likely to 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 payments might look like with different interest rates and terms to help you see what you can afford.
If you have less than stellar credit, boosting your score could bring your interest rate down. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and which steps you can take today to bring it up quickly. Your credit score may take some more time and work, but it's worth it for those lower Montana auto loan rates.
Putting effort into finding the right lender can also help you achieve a lower rate. While lenders will use 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 Billings, MT — even if you don't have the best credit or income. You shouldn't go with the first offer you receive because a better one could be right around the corner. Keep in mind 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 Billings, MT with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Billings, MT no matter what type of car you're buying or your credit score. We'll show you up to four loans at once so you can find the right deal. Complete our secure online application, pick the loan that works best for you, and head down to a dealer in Billings to purchase a new ride. Apply now to check today's lowest interest rates!