What Determines Your Auto Loan Rate in Houston, TX?
A handful of factors impact your Texas auto loan interest 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 Houston could result in 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 becomes and the more you spend over the term of your loan. Just one or two percent more could mean spending hundreds more on interest.
Is There a Way to Lower My Houston Car Loan Rate?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate could be before you complete an application for a car loan in Houston, TX. If you've filled out your information and aren't liking the percentage you see, how can you lower?
The loan term is one aspect you can change on your own. Most auto loans in Houston have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms attract many borrowers because they usually have a lower monthly payment. But longer terms tend to also 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 payment might be based on different interest rates and terms to help you decide what you can afford.
If you have less than ideal credit, boosting your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing walks you through 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'll be worth it once you see those lower Texas auto loan rates.
Putting effort into finding the right lender can also help you secure a lower rate. While lenders will consider the same information, you'll likely receive a different interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Houston, TX — even if you don't have the highest income or best credit. You don't want to choose the first offer you get because there could be a better one right around the corner. Plus, some lenders are open to negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Find the Best Auto Loan Rates in Houston, TX with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Houston, TX no matter your credit score or the type of car you're buying. You can see up to four loans at once so you can get the right deal. Fill out our secure online application, choose the loan that looks best to you, and head down to a dealer in Houston to purchase a new ride. Don't wait to apply and check today's lowest interest rates!