October 1, 2020

Your Guide to Getting an Auto Loan in Tyler, Texas

For most of the population, having a car, truck, or RV is essential to living a quality life. Motor vehicles allow you to commute to work, go on road trips with your friends, and take your kids to school.

But purchasing a car can be a significant investment, especially if you want a high-quality vehicle. That’s where an auto loan can help. Auto loans allow you to make monthly payments until you complete your loan agreement.

Several loan options are available and offer varying payment schedules and contract lengths. Lenders provide the largest selection of loan types to those with exceptional credit scores. The higher your credit score, the lower the rate available to you allowing you to borrow more money, and offering you more loan options.

To get started and find out what your options may be, try our easy auto loan calculator. Regardless of whether you want to buy a new or used vehicle, with this information in hand, you’ll be able to determine how much you can get out of an auto loan.

The car loan process doesn’t have to be daunting. Kelly Community Federal Credit Union is here to assist and pre-approve you for an auto loan to help you buy the vehicle of your dreams.

What Is a Good Credit Score to Buy a Car in Tyler, Texas?

Your credit score impacts your buying power at a car dealership. Maintaining good credit will lead to lenders offering you a higher loan amount. Before you begin your car-buying journey, you must know your credit score and what score the lender requires.

Each lender has qualifications for approving an auto loan. Most banks will look for a credit score of 700 or higher. However, other lenders may approve loans to buyers who have a credit score as low as 300.

Our auto loan calculator can help you get an idea of your car loan options, but you’ll need to know your credit score first. Typically, your monthly credit card statements will list your updated credit score. You may also use sites like Credit Karma or Experian, or our Financial Services Officers can tell you during the loan application process.

If your credit does not allow you to get an auto loan, there are ways you can boost your credit score. Be sure to always make your monthly payment on time. Even if you pay the minimum amount each month, your credit score will not decrease.

If you don’t have an established credit history, you can build it up by making small charges on your credit card. Make sure to pay them off each month. Regular payments will show lenders that they can trust you with an auto loan.

Auto Loan Payment Calculator & Car Payment Tool in Tyler, Texas

If you want to proceed with the car buying process in Tyler, Texas, you can try out our auto loan calculator. Our car payment tool is a great way to see what loan offers you can expect to receive. This calculator works on both your smartphone and desktop.

You can play around with our loan savings account calculator and enter your desired monthly payment. Plus, you can customize the down payment, monthly payment, and length of the loan with our calculator tool.

After entering your information, you will see what kind of car, truck, or SUV you can afford at your budget level with an auto loan.

Did you find your next vehicle? We are happy to help you with follow-up steps and get you started with the loan approval process.

What Is a Good Car Loan Rate in Tyler?

Experian lists the average interest rate for a new car in 2021 at 4.09%. However, if you are in the market for a new or used vehicle, we at Kelly Community Federal Credit Union are currently offering a rate of 2.18% APR!

Is a 72-Month Car Loan a Good Idea?

Many buyers show interest in a 72-month auto loan because of the lower monthly payments. However, we only recommend pursuing this type of loan if you have exceptional credit. Those with poor credit will pay more in the long run.

Also, 72 months is a lengthy commitment. You may want to invest in a new vehicle during those six years. Our auto loan calculator can help you determine if this is a good choice for you.

What Interest Rate Should I Expect on a Car Loan with a 700 Credit Score?

If your credit score is 800, auto lenders will be generous with their offers — that is considered an exceptional score. With a credit score of 700, you can expect to pay between 4% and 6% interest on a monthly car loan.

You can use our auto loan calculator to see how much you would pay in interest based on your credit score.

What is the Monthly Payment For a $10,000 Vehicle?

The monthly payment for a $10,000 vehicle depends on how much your down payment is. It also changes based on the life of the loan you select.

For example, if you put down $1,000 for a deposit with a loan term of 72 months, your monthly payments will be $125 plus interest.

Is it Wise to Pay Off a Car Loan Early?

In most cases, paying off your loan before its expiration date is a positive. It can improve your credit history, save you money on future monthly payments, and clear you of any obligations. If your credit history shows that you paid off a loan early, our credit union will be more willing to offer you an exceptional deal.

However, make sure that there is no prepayment penalty attached to your loan before you pay it off early.

Come to Kelly for Tyler Auto Finance Offers

Kelly Community Federal Credit Union can help you with the auto loan process in Tyler, Texas. Our auto loan calculator is a first-class tool that will prepare you for the types of loan offers you will receive from our lender. Discover your options with our tool and contact us at 903.597.7291 so we can guide you through the next steps!

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