How to Lower Your Interest Rate Plainfield IN | Andy Mohr Chevrolet

How To Lower Interest Rate for Car Loan

When you apply for a car loan, you want the right interest rate and monthly payment amount that fits your lifestyle.  A lower interest rate will make it easier to pay off your loan and officially own your car.

One great way to lower your interest rate is to contribute as much as possible to the down payment. This can come from money you’ve saved as well as a trade-in amount. If you no longer need your current car, consider using its value towards your finance plan. We provide an online trade-in tool that can send you an estimated appraisal ahead of time.

In addition to a higher down payment, consider a shorter loan term. Since the loan is expected to take less time to pay back, you up your chances of a lower interest rate.

Yet another way to get a lower interest rate is to ask a family member or friend with good credit to co-sign on the loan. Their good credit score will reflect more reliability and can help lower the interest rate.

Boost Your Credit Score

To score a lower interest rate, you’ll want to research your credit score and boost it as much as possible. This credit boost will aid further in getting you the interest rate you’re looking for. 

The first step is to review your current credit report and score. Here, you’ll be able to spot any errors and have them fixed. 

The next step is to review any other loans and bills to make sure all payments are going through on time. These on-time payments demonstrate your responsibility and ability to take on another loan.

More ways to boost your credit score include:

• Applying for a secured credit card
• Being named an authorized user of a family member or friend’s card

With a secured car, you’ll supply the line of credit, use it to make purchases, and pay the amount back. As an authorized user, the credit history of your family member or friend will apply to your history. Both of these options present effective ways to raise your score and contribute toward a lower interest rate.

Finance a Vehicle With Our Team

With a boosted credit score, you’ll feel prepared to apply for a loan. Our expert team will work with you to come up with the right interest rate and monthly amount.

We help make it easy to get started from home via our online finance application. Fill it out today to get pre-approved for credit. We’ll look over that information and create tailored plans. Then, you’ll be invited to come in to discuss everything.

We referenced our trade-in tool above, and we offer another resource in our payment calculator. Try it out with different loan amounts, down payments, and interest rates to get a better idea of what you’d pay each month. Then, come ready to ask our team any questions and choose your plan!