Getting the Best Rocket Auto Loan Rates

Getting a new car is an exciting time. Whether you need more space for a growing family, want something more reliable for your work commute, or just have your eye on your dream car, buying a new vehicle opens up a world of possibilities. But with the thrill of shopping for your perfect ride comes the reality of figuring out how you’ll pay for it. For most people, an auto loan is the best way to spread out the costs of a car over a few years. But how do you make sure you’re getting the best possible deal on your auto loan? That’s where Rocket Auto comes in.

Rocket Auto offers highly competitive interest rates on auto loans, with a quick and easy online application process. But before you dive in and apply for a Rocket Auto loan, it’s important to understand what goes into determining your interest rate and monthly payments. Being an informed borrower is the key to getting the best rocket auto loan rates.

What Affects Your Rocket Auto Loan Rates?

Many factors determine the interest rate and terms that lenders like Rocket Auto can offer you on an auto loan The main elements that impact your rate are

• Credit score – Your credit score gives lenders an idea of how reliably you’ve paid debts in the past. The higher your score, the lower interest rate you can qualify for, since you’re seen as lower risk.

• Debt-to-income ratio – Also known as DTI, this measure looks at how much of your gross monthly income is already going toward paying existing debts. The lower your DTI, the more confident lenders are in your ability to handle a new auto loan payment.

• Down payment amount – The more money you put down upfront on a car purchase, the less you have to borrow from the lender. A higher down payment signals you’re financially invested in repaying the loan, and can open access to better rates

• Loan term – Auto loans typically range from 24 to 84 months. Shorter loan terms mean less interest paid over the life of the loan. But longer terms do allow for lower monthly payments.

• Vehicle info – Details like the car’s mileage, age, brand, and price can influence rates too. Newer cars released within the past year tend to get better rates.

• Employment history – Steady employment gives lenders confidence in your ability to repay the loan. Gaps in work history can result in higher rates.

Looking at current market averages can give you a benchmark for what competitive auto loan rates tend to be based on credit scores:

• Exceptional credit (800+ scores) – 3.25% to 6% APR

• Very good credit (740-799) – 4% to 8% APR

• Good credit (670-739) – 6% to 12% APR

• Average credit (620-669) – 10% to 18% APR

• Poor credit (580-619) – 15% to 25% APR

Keep in mind as you’re rate shopping that advertised rates are often the lowest rates lenders offer only to those with the most exceptional credit profiles. Your actual rate will depend on your specific credit situation.

How to Get the Best Rocket Auto Loan Rates

Now that you know what goes into determining your rate, here are some tips for getting the lowest rate possible on your Rocket Auto loan:

• Review your credit reports – Make sure there are no errors negatively impacting your credit scores. Dispute any mistakes with the credit bureaus.

• Pay down existing debts – Consider paying off credit cards and other debts to lower your DTI. Even closing unused card accounts can help.

• Make a larger down payment – Save up to put at least 20% down if possible. This shows you’re invested in the loan.

• Shorten the loan term – Opt for a 24 to 36 month term instead of 72 to 84 months to reduce interest costs over time.

• Enroll in autopay – Setting up automated payments from your bank account can score you a rate discount.

• Add a co-signer – If your credit score is low, adding a co-signer with better credit can mean a lower rate.

• Consider buying used – Since used cars tend to have lower rates, this can open up access to the best rates.

• Compare lender offers – Check rates from banks, credit unions, and online lenders like Rocket Auto to find your best deal.

• Ask about discounts – Don’t be afraid to inquire with lenders about any special discounts that may apply to you.

Taking these steps allows you to present yourself to lenders as a low-risk borrower who is likely to repay on time. That makes you eligible for the top advertised rates companies like Rocket Auto provide.

Rocket Auto Loan Rates: What You Need to Know

Now that you understand what goes into a loan rate, let’s take a closer look at Rocket Auto specifically. Here are a few things to keep in mind about Rocket Auto loan rates:

• Competitive rates – Rocket Auto advertises rates as low as 3.99% for those with great credit. Rates range from 4% to 18% for good to average credit.

• Loan amounts – You can borrow between $5,000 and $55,000 from Rocket Auto for a new or used car purchase.

• No prepayment penalties – You can pay off your Rocket Auto loan early with no extra fees. This helps you save on interest.

• Terms – Rocket Auto offers loan terms from 24 to 84 months. Choose terms of 48 months or less when possible to save.

• Discounts – Rocket Auto offers a .25% rate discount when you enroll in automatic payments from a bank account.

• No application fees – It’s free to complete Rocket Auto’s online loan application. Pre-qualifying lets you check rates without a hard credit inquiry.

• Fast funding – If approved, you could have access to funds the same or next business day.

• No equity required – Since auto loans are secured debt, you don’t need home equity or a down payment.

• Online process – The entire application process is available online for a quick and easy experience.

The convenience of getting approved for financing 100% online in minutes makes Rocket Auto a great one-stop shop for your next auto loan.

Rocket Auto Loan Rate FAQs

If you’re considering financing your next car with a loan from Rocket Auto, you probably still have plenty of questions about how their loan rates work. Here are answers to some frequently asked questions about Rocket Auto loan rates:

How does my credit score affect my rate? In general, the higher your credit score, the lower the rate lenders like Rocket Auto can offer. Scores above 720 fetch the best rates. If your score is under 620, rates will be much higher.

What credit score is needed for the lowest rate? To qualify for the absolute lowest rates advertised by Rocket Auto, which can be as low as 3.99%, you’ll need a minimum credit score of 720. But scores of 670+ can still get competitive rates.

Do you need a down payment? Rocket Auto does not require a down payment to qualify for a loan. However, the more you put down, the better the rate since you’re reducing the amount borrowed.

Does Rocket Auto have prepayment penalties? No. You can pay off your Rocket Auto loan early with no extra fees or penalties. This allows you to save on interest costs.

Can I get approved entirely online? Yes. The Rocket Auto loan application process from start to funding can be completed 100% online. There is no need to visit a branch or even speak to a representative on the phone if you don’t want to.

How long does it take to get approved and receive funds? In many cases, if you complete the application and e-sign loan documents early in the day, you can receive your funds via ACH deposit the very same business day. Next business day funding is also common.

What loan terms are available? Rocket Auto offers loan repayment terms from 24 months up to 84 months. Keep terms below 48 months when possible to pay less interest over the life of the loan.

Getting quick answers to questions like these can give you confidence that Rocket Auto provides a seamless auto loan experience with highly competitive rates tailored to your unique credit profile.

Is a Rocket Auto Loan Right for You?

Now you should have a solid understanding of how auto loan rates work, specifically when it comes to getting the best deal on a Rocket Auto loan. While Rocket Auto offers some of the most competitive rates available for borrowers with all types of credit, make sure you compare options from other lenders as well. Compare rates from local banks and credit unions to find the best fit for your financial situation.

Here are a few final factors to consider when deciding if a Rocket Auto loan is your best option:

• Do you need to finance an older or high mileage car? Rocket Auto may restrict loans on cars over 10 years old.

• Is your credit score under 600? You may have better luck with