How Are Car Loan Rates in Georgetown, TX Calculated?
Several factors contribute to your Texas auto loan interest rate, including the loan amount, your credit score, your income, 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 Georgetown dealer could result in a higher interest rate. But is a high interest rate so bad? The higher of an interest rate you have, the higher your monthly bill is and the more you spend in total. Just one or two percent more could mean spending hundreds more on interest.
Is There a Way to Lower My Georgetown Car Loan Rate?
Online tools like our Interest Rate Estimator will give you a feel for what your rate could be before you complete an application for a car loan in Georgetown, TX. If you've filled out your information and aren't happy with the percentage you see, what can you do to lower it?
The loan term is one factor you have a lot of control over. Most Georgetown 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 have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If your budget allows for a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment based on different interest rates and terms to help you figure out what you might be able to afford.
If your credit is far from great, improving your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and how you can quickly bring it up. Your credit score may take some more time and work, but it's all worth it for getting those lower auto loan rates in Texas.
Putting effort into finding 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 Georgetown, TX — even without a high income or credit score. You shouldn't automatically choose the first offer you get because a better one might be waiting just around the corner. And, some lenders will negotiate, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in Georgetown, TX
myAutoloan wants to help you find the lowest auto loan rates in Georgetown, 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 find the best deal. Complete our secure online application, choose the best loan for you, and head down to a dealer in Georgetown to purchase a new ride. Don't wait to apply and check today's lowest interest rates!