There is no set credit score you need to get an auto loan. If you have a credit score above 660, you will likely qualify for an auto loan at a rate below 10% APR. If you have bad credit or no credit, you could still qualify for a car loan, but you should expect to pay more.
A FICO® Score of 611 places you within a population of consumers whose credit may be seen as Fair. Your 611 FICO® Score is lower than the average U.S. credit score. Statistically speaking, 28% of consumers with credit scores in the Fair range are likely to become seriously delinquent in the future.
Documentation Requirements. Whether your credit score is 600 or 800, you will need to provide your lender with some documentation proving your ability to repay your loan. This includes: Proof of employment via a pay stub - you generally need to make at least $1,500 per month to qualify for an auto loan.
A target credit score of 661 or above should get you a new-car loan with an annual percentage rate of around 3.64% or better, or a used-car loan around 5.35%.
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.
You can get a car loan with a low credit score
While the exact definitions of these terms vary depending on who you ask, the Consumer Financial Protection Bureau, or CFPB, defines subprime as borrowers with credit scores of below 620 and deep subprime as borrowers with scores below 580.
A 615 FICO® Score is considered “Fair”. Mortgage, auto, and personal loans are somewhat difficult to get with a 615 Credit Score. Lenders normally don't do business with borrowers that have fair credit because it's too risky.
The higher your credit score, the better the rate you'll get for any loan. A credit score above 660 will typically allow you to qualify for an auto loan without a hassle. A credit score of 760 and above will typically allow you to qualify for auto maker special financing that can offer low-APR loans and rebates.
Generally speaking, banks require a minimum credit score of 600 to give an auto loan without any down payment. However, you CAN buy a car with a score of 400 or a score of 850. There are a lot of variables that weigh into determining your loan eligibility and interest rates available.
To qualify, you must have a fair credit score of 600 or above and a debt-to-income (DTI) ratio below 40%. Peerform uses a proprietary algorithm to determine your qualification. Through the marketplace, borrowers can get loans ranging from $4,000 up to $25,000 with limited loan term options of either 36 or 60 months.
Your score
670 and 739, you have a good rating, and as such, you are not likely to default on your finance agreement. Finance will be approved. 740 and 799, you are very good and likely to receive better than average interest rates from finance houses.
A FICO® Score of 620 places you within a population of consumers whose credit may be seen as Fair. Your 620 FICO® Score is lower than the average U.S. credit score. ... Consumers with FICO® Scores in the good range (670-739) or higher are generally offered significantly better borrowing terms.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
650 – 669 = good. 634 – 649 = average. 618 – 633 = below average. Below 618 = very poor.
As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.
A 710 credit rating is considered “Good.” That means you are likely to have more success finding a great deal. Let's go through the basics of auto financing and credit scores, so you can start the shopping process with total confidence.
Your score falls within the range of scores, from 580 to 669, considered Fair. A 590 FICO® Score is below the average credit score. Some lenders see consumers with scores in the Fair range as having unfavorable credit, and may decline their credit applications.
A 627 FICO® Score is considered “Fair”. Mortgage, auto, and personal loans are somewhat difficult to get with a 627 Credit Score. Lenders normally don't do business with borrowers that have fair credit because it's too risky.
Auto lenders most commonly use the FICO Score 8 system
High credit card usage: If you high balances on your credit cards. Isolated late payments: If you were at least 30 days late with any of your payments. Amounts owed on your credit lines. Payment history.
Interest Rate
If you get approved for a car loan, lenders will charge you with high interest to compensate for that risk. A high credit score of 700 to 850 usually commands an APR or around 4% or lower. An average score of around 650 to 699 will likely give you 6 to 10% APR.
Based on Bankrate's national interest rate survey, a consumer with a FICO score between 680 and 699 trying to borrow $300,000 in early April would have qualified for a 3.709 percent rate on a 30-year fixed mortgage, resulting in a $1,382 monthly payment.
As mentioned above, a 680 credit score is high enough to qualify for most major home loan programs. That gives you some flexibility when choosing a home loan. You can decide which program will work best for you based on your down payment, monthly budget, and long–term goals – not just your credit score.
1. Applying for too many credit cards or loans in a short period of time. The only way to have a strong credit score in the first place is to borrow money… and pay it back. ... In fact, any activity that requires a hard inquiry will lower your credit score, and those hard pulls can be sneaky.
A low score is generally considered to be between 300 and 579. A fair score is between 580 and 669. A good score is anything above 700.