How Are Katy, TX Auto Loan Rates Determined?
Several factors influence your Texas car loan 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 Katy could mean a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate gets, the higher your monthly payment is and the more you spend over the life of your loan. Even a rate one or two percent higher could mean spending hundreds more overall.
Is There a Way to Lower My Katy Car Loan Rate?
You can use tools like our Interest Rate Estimator to get a feel for what your rate could be before you start applying for auto loans in Katy, TX. If you've plugged in your information and are unhappy with the percentage you see, what can you do to lower it?
The loan term is one aspect you can control. Most auto loans in Katy have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms attract many borrowers because they usually mean a lower monthly payment. However, longer terms also tend to come with higher interest rates. If you can afford a bigger monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment based on different interest rates and terms to help you determine what might be affordable.
If your credit is far from great, improving your score could bring your interest rate down. 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 will take some effort and time to build, but it'll be worth it once you see 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. Shopping around and comparing offers will help you find the best auto loan rate in Katy, 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 might be waiting just around the corner. Keep in mind 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 Katy, TX
myAutoloan wants to help you find the lowest auto loan rates in Katy, TX regardless of your credit score and the type of car you're buying. We'll show you up to four loans at once so you can get the right deal. Complete our secure online application, choose the loan that looks best to you, and visit your Katy dealer to purchase a new car. Apply today to see the current lowest interest rates!