What Determines Your Auto Loan Rate in Fort Worth, TX?
A handful of factors impact your Texas car loan interest rate, including your credit score, the amount of the loan, your income, the down payment, the age of the car, and your loan's term (the length of the loan). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Fort Worth dealer could result in a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the higher your monthly payment becomes and the more you spend in total. A difference of one or two percent might not seem like much, but it could mean spending hundreds more overall.
Is There a Way to Lower My Fort Worth Car Loan Rate?
Online tools like our Interest Rate Estimator will give you a feel for what your rate might look like before you complete an application for a car loan in Fort Worth, TX. If you've put in your information and don't like the percentage you see, how can you lower?
The loan term is one factor you have total control over. Most auto loans in Fort Worth are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms attract many borrowers because the monthly payment is usually lower. But longer terms tend to also come with higher interest rates. If your budget allows for a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be with different interest rates and terms to help you figure out what you might be able to afford.
If your credit is far from great, raising your score could decrease 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. It may take some effort and time to increase your credit score, but it's worth it for those lower Texas auto loan rates.
Waiting to find the right lender can also help you get a lower rate. While lenders will look at the same information, each one might give you a different interest rate. You need to shop around and compare offers to find the best auto loan rate in Fort Worth, TX — even if you don't have the best credit or income. You don't want to go with the first offer you receive because a better one could be right around the corner. Keep in mind some lenders leave room for negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Use myAutoloan to Check the Best Auto Loan Rates in Fort Worth, TX
myAutoloan is committed to helping you find the lowest auto loan rates in Fort Worth, TX no matter what type of car you're buying or your credit score. You can look at up to four loans at once so you can get the right deal. Simply complete our secure online application, pick the loan that works best for you, and head to your Fort Worth dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!