Illinois Car Loans at Low Rates - Only Settle for the Best Rates
You have always received rates around 4% which were pretty good for every car buyer. But, what if someone told you that you can go as low as 0.79% for a 4 year loan term in Illinois? Yes, today lenders are offering extremely low rates on auto loans. If you can get lower rates, your interest payments will be almost nothing.
So interested in getting low rate financing options? If your answer is affirmative, let's begin the journey. Follow the four simple steps to get approved for the best rates:
Step 1: Spend Time so you don't have to Spend Money
Research, research and research - it's the only way to get the best car loan deal in Illinois. Understand that if you choose an auto loan quote without thinking, you may end up with higher rates. So, first of all, prepare a budget. Know how much money you can spend on the car. It will give you a direction and also, help you in keeping your spending in limit.
Step 2: More Score for Less Rates
Today, for every credit score there is an auto loan program. But, to get better rates, you must have a good credit score. If you have bad credit history, make few payments and let them improve your credit score. Also, remove error from your credit report. It will definitely add few points which further reduces the interest rates on your car loan.
Step 3: Down Payment or Collateral is Beneficial
To get lower rates, the Illinois lender must consider you of a lesser risk. If he thinks that you can make regular payments, he will reduce your car loan rates. You can manifest your stable financial condition by making a down payment. 10%-20% down payment can work like magic. If you don't have cash for down payment, you can trade-in your old car or even use your home or another car as collateral. When the lender is assured of the safety of his money, getting lower rates will be very easy for you.
Step 4: Applying with Lenders and Process thereafter
Never apply with a single lender because it won't give you a chance to compare car loan rates. So, apply with several lenders. Don't worry about your credit score getting negative hits because Fair Isaac Corporation has declared that it will ignore inquiries made in a month prior to scoring. This means if you get your loan within 30 days, then your score won't change. Remember that the time span can reduce to 14 days if the lender uses older versions of FICO score. Also, it can increase to 45 days if the latest formula is considered. So, to be on the safer side, complete your loan process in 2 weeks i.e. 14 days.
After getting auto loan quotes from the lender, you must analyze them carefully. Securing lower rates is your goal but ignoring other loan aspects can cost you. So, check the loan term, conditions, loan amount, etc. Choose a loan that has zero pre-payment penalty clause because it will enable you to refinance your loan in future (if better rates are available).
By following these 4 simple steps, you can definitely succeed in your quest of getting lower rates on Illinois car loans. Remember to lower the risk factor and your rates will nose-dive!
Best of Luck Illinoisans!
:- Posted by Admin on 30th May, 2022