To secure a car loan in Illinois, you’re going to want to have a credit score of at least 660. At the same time, you should seek out a loan with low-interest rates and a term length of no more than 60 months.

The tangle of mystery surrounding car loans can be daunting and is definitely unnecessary—that’s why the car insurance broker and comparison shopping app Jerry is here to clear the air and break down everything you need to know about getting a car loan in the Land of Lincoln.

Jerry is here to guide you through the steps of getting a car loan in Illinois! Read on for some tips on how to compare lenders and an explanation of how your credit score can affect your car loan.

How to get a car loan in Illinois

In Illinois, securing yourself a car loan is the most straightforward way to get behind the wheel of a new car—unless, of course, you’re ready to hand over cold hard cash and buy it outright.

Don’t be ashamed if buying a car outright isn’t possible—it’s that way for most people. Instead, securing a loan from a bank, credit union, or the dealership you’re buying from will allow you to pay off your loan within a few years.

This is what you should expect when taking a loan out in Illinois:

First, make a down payment (usually around 10% of the car’s total value)
Then, choose your loan’s term (how long it will last) and negotiate an interest rate with the lender
Now, you’ll pay off your loan’s principal (i.e. the amount you’re required to pay back) in monthly installments over the loan’s term
You’ll also need to pay interest on a monthly basis, according to your annual percentage rate (APR)

The loan you end up with will depend on a few factors, including the make and model of the car you buy, your credit score, and the loan term you and your lender agree to. The table below is a handy guide in terms of what your APR and monthly payment might look like if you take out a loan in Illinois:

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment
ACURA	8.46	$361
ALFA ROMEO	8.53	$362
ASTON MARTIN	8.53	$362
AUDI	8.66	$363
BENTLEY	8.53	$362
BMW	9.17	$367
BUICK	8.56	$362
CADILLAC	8.86	$365
CHEVROLET	8.56	$362
CHRYSLER	8.89	$365
DODGE	8.69	$363
FERRARI	8.53	$362
FIAT	8.6	$362
FORD	8.56	$362
GENESIS	8.53	$362
GMC	8.49	$362
HONDA	8.32	$360
HYUNDAI	8.56	$362
INFINITI	8.69	$363
JEEP	8.32	$360
Jaguar	8.53	$362
KIA	8.79	$364
LAMBORGHINI	8.53	$362
LEXUS	8.49	$362
LINCOLN	8.66	$363
LOTUS	8.53	$362
Land Rover	8.53	$362
MERCEDES-BENZ	8.53	$362
MINI	8.53	$362
MITSUBISHI	8.69	$363
Maserati	8.53	$362
Mazda	8.53	$362
NISSAN	8.63	$363
POLESTAR	8.53	$362
PORSCHE	8.68	$363
RAM	8.56	$362
ROLLS-ROYCE	8.53	$362
Subaru	8.53	$362
TESLA	9.02	$366
TOYOTA	8.32	$360
VOLKSWAGEN	8.56	$362
VOLVO	8.36	$361

Ready to find a car loan in Illinois that works for you? Here’s what you need to do.

Check your credit

The first thing you want to do is check your credit score. Ideally, your score should be 660 or higher in order to secure a solid interest rate. If your credit score is above average (700 or above), you might qualify for an interest rate of 3% or less. Keep in mind, the average interest rate is around 5%.

The table below will help you estimate your average interest rate and monthly payment based on your credit score:

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment
24	11.63	$699
36	8.8	$471
48	8.25	$364
60	8.15	$301
72	8.51	$263

Compare lenders

You’re going to want to weigh your options to ensure you get the loan that works best for you. If purchasing from a dealership, your dealer may offer to handle your car loan, but be careful, you might find yourself in a loan agreement that works better for your dealer than it does for you.

Before deciding on a loan, compare offers from at least three lenders. Try and find a lender that can offer a low-interest rate, but take a look at other factors as well, such as your approval odds with that lender as well as their customer service record.

Choose your loan term

Remember, your loan term, or the timeframe in which you are given to pay off your balance, is negotiable. In Illinois, the average car loan term is between 60 and 72 months.

If you sign up for a long-term loan, your monthly payment will be lower, but you will pay more in interest, making this type of loan more expensive in the long run. Securing a loan with a shorter overall term is usually a better bet—just make sure paying a bit more each month (and thus avoiding higher interest rates) fits into your budget. Ideally, a loan term should not be longer than 60 months.

Check out the table below to see how your APR and monthly payment will change based on your loan term in Illinois.

Credit Rating	Average Annual Interest Rate	Average Monthly Payment
Fair	16.92	$415
Good	8.42	$361
Very Good	5.11	$341
Excellent	3.89	$333

MORE: Should you get a 72-month car loan?

Get preapproved

If possible, get preapproved for a car loan. Walking into a car dealership with a preapproved loan gives you power. How so? With a preapproved loan and the knowledge of what you’ll pay on a monthly basis in your back pocket, you can leverage this into potentially negotiating a better loan agreement with your lender. It’s called shopping with confidence!

Can you get a car loan in Illinois for a used car?

Yes. You can use a car loan to finance a transaction for a used car in Illinois. However, you’ll want to keep the following things in mind:

Loans for used cars usually carry a higher interest rate (around 8%).
Some lenders won’t approve loans for vehicles that are a certain age.
Most banks set a minimum amount for car loans. If you want a small loan to buy a used car, you might want to consider a loan from a credit union to finance your purchase.

Take a look at this table to see how the age of a car can affect loan terms in Illinois:

Car Make

Car Year	Average Annual Interest Rate	Average Monthly Payment
2021	7.73	$305
2020	8.14	$309
2019	8.28	$309
2018	8.11	$307
2017	8.31	$309
2016	8.47	$310
2015	8.67	$312
2014	8.64	$380
2013	8.71	$381
2012	9.7	$512
2011	9.7	$512
2010	9.7	$512

MORE: Seat belt laws in Illinois

Illinois car loan calculator

By now you know how a car loan works, how to pick a reasonable loan term, and how to factor in the car you’re buying. Now it’s time to use Jerry’s car loan calculator to add it all up! This will help you determine how much you might pay for a car loan in Illinois and what interest rate you can expect based on your credit score, loan amount, loan term, and the car’s make and model.

An important thing to remember—these values are averages. Once you sit down with your lender to hammer out the details for your car loan, the interest rate and loan term are negotiable, as are any extra fees and any penalties. Use this tool to set your best foot forward when you walk into a car loan negotiation.

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.59	$362

MORE: Illinois electric vehicle incentives

How to find affordable car insurance in Illinois

Securing a car loan is just the first step in order to drive off into the sunset with your new (or used) set of wheels—next, you’ll need to insure your new ride according to Illinois car insurance laws.

Make this process a snap by downloading the Jerry app. Sign-up takes just 45 seconds, and then this licensed broker and comparison shopping app gets to work comparing more than 50 top quotes for you to choose from.

Once you pick your policy, Jerry does all the rest, including signing you up for your new policy and canceling your old one. Best of all, Jerry automatically searches for better rates on your behalf before each renewal period!

“This was so easy! Signing up with Jerry saved me $499 on my semi-annual insurance. As if it was nothing!” —Kache P.

FAQs

What credit score is needed to buy a car in Illinois?

In Illinois, you’re going to want a credit score of 660 or higher to qualify for a car loan with a preferable interest rate. Still, you might find a lender willing to give you a loan even if your credit score leaves something to be desired.

Will a bank give me a loan for a used car?

Possibly. As a rule of thumb, you can take out a car loan for a new or used car, but some banks have limits in terms of the minimum amount they’ll lend out for a loan. If the car you have your eye on has a very low purchase price, a bank might not lend to you. In that case, trying your luck with a credit union might be a better bet.