If you have a credit score above 750, you can probably qualify for the best rates available and negotiate an excellent deal on your car. If your credit score is lower, see if you can give it a boost before you apply for a loan.
For a 750 credit score, the average auto loan rate is about 3.48 percent for new cars and 5.49 percent for used cars. Both of these rates are very good compared to the available range.
With a score of 750 to 759, you are in the second-best credit score range for auto loans and you will pay relatively low interest rates. If your score is between 750 and 759, it's worth spending some time building up your credit in order to move into a “superprime” range.
Generally speaking, credit scores above 760 are considered 'excellent' by almost all lenders. Anyone having credit scores in the 760 and higher range should have little trouble finding lenders willing to give them auto loans at interest rates reserved for the most creditworthy customers.
In general, lenders look for borrowers in the prime range or better, so you will need a score of 661 or higher to qualify for most conventional car loans.
The recommended credit score needed to buy a car is 660 and above. This will typically guarantee interest rates under 6%.
Auto dealerships use the FICO credit bureau, which stands for Fair Isaac Corporation. They also use the FICO Auto Credit Score, which has a range of 250 to 900. This may mean that an auto dealer has a different credit score for you than the one you see on your personal credit report.
761 credit score car loan options
With a credit score of 761, you'll receive—on average—an interest rate of 3.65 percent for a new vehicle and 4.29 percent for a used vehicle. This is very different from the rates you might get if you had a much lower credit score.
Your FICO® Score falls within a range, from 740 to 799, that may be considered Very Good. A 750 FICO® Score is above the average credit score. Borrowers with scores in the Very Good range typically qualify for lenders' better interest rates and product offers.
The monthly payment on a $20,000 loan ranges from $273 to $2,009, depending on the APR and how long the loan lasts. For example, if you take out a $20,000 loan for one year with an APR of 36%, your monthly payment will be $2,009.
Your FICO® Score falls within a range, from 740 to 799, that may be considered Very Good. A 759 FICO® Score is above the average credit score. Borrowers with scores in the Very Good range typically qualify for lenders' better interest rates and product offers.
755 credit score car loan options
Where your credit score comes into play is the interest rate you'll get on the loan. With a credit score of 755, you'll receive—on average—an interest rate of 3.65 percent for a new vehicle and 4.29 percent for a used vehicle.
And if you're hoping to score a 0% APR car loan, you'll likely need a very good or exceptional FICO® Score☉ , which means a score of 740 or above. Before you start shopping for a new vehicle, take some time to check your credit score to see where you stand.
According to experts, a car payment is too high if the car payment is more than 30% of your total income. Remember, the car payment isn't your only car expense! Make sure to consider fuel and maintenance expenses. Make sure your car payment does not exceed 15%-20% of your total income.
Good Credit Score Range For Auto Loans
If you're shooting for the lowest possible APR on your auto loan your Auto credit score should be above 740.
Since a credit score of 750 is in the excellent credit range, people with this score should have great odds of qualifying for nearly any personal loan on the market, including those with a low APR and no origination fee. That's assuming they have a good income and meet the lender's other requirements, though.
A 790 credit score is Very Good, but it can be even better. If you can elevate your score into the Exceptional range (800-850), you could become eligible for the very best lending terms, including the lowest interest rates and fees, and the most enticing credit-card rewards programs.
The ranges include very poor, fair, good, very good and exceptional, and fortunately, a score of 764 lands you in the “very good” credit range of 740 to 799. This means that you're likely to be approved for most loans and you'll receive some of the best interest rates available.
A 780 credit score is Very Good, but it can be even better. If you can elevate your score into the Exceptional range (800-850), you could become eligible for the very best lending terms, including the lowest interest rates and fees, and the most enticing credit-card rewards programs.
With a score of 760 to 769, you are in the second-best credit score range for auto loans and you will pay relatively low interest rates. If your score is between 760 and 769, it's worth spending some time building up your credit in order to move into a “superprime” range.
Although a 650 credit score is desirable for any loan, first time car loans may require a score of 680 or higher to waive any co-signer requirements.
When you visit a dealer and decide to purchase a car, fill out the loan paperwork and give the dealer permission to run a credit check, that generates a hard inquiry on your credit report. Hard inquiries will reduce your credit score anywhere from 5-10 points for about a year.
Lenders want to determine that you have the ability to repay your auto loan before they finance a car. This goes beyond just running numbers based on an interest rate. Lenders should assess your income, assets, employment, credit history and monthly expenses to determine that you're able to pay back the loan.