You should be able to get a car loan with a 616 credit score without a problem. Truthfully, people can get a car loan with almost any credit score—the difference will be what kind of interest rate you can secure. A score of 616 may get you an interest rate of between 11.92 percent and 4.68 percent on a new car loan.
A FICO® Score of 616 places you within a population of consumers whose credit may be seen as Fair. Your 616 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.
A: It's entirely possible to apply successfully for an auto loan with only a 620 credit score. Consider this information which comes straight from Experian: In fact, Experian also stated that vehicle loans for customers having credit scores under 620 accounted for 20% of all auto loans during 2019!
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 3.56% or better, or a used-car loan around 5.58% or lower.
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.
According to credit reporting agency Experian, more than 21% of auto loans in the fourth quarter of 2018 were extended to borrowers with subprime (501-600) or deep subprime (500 or below) credit scores. So, the answer is yes, you can buy a car with that credit score.
In some cases, it's possible for somebody with a credit score below 600 to be approved. In others, certain lenders will not be willing to approve these people. But, in order to qualify for the lowest lease rates and best terms, it's clear you'll want a credit score in the prime or super prime range (above 700).
The FICO credit score.
The FICO credit scoring model is the most commonly used credit scoring model by auto lenders and car dealerships, and is also the oldest and first-ever credit scoring model. It's estimated that 90% of auto lenders use the current FICO Score 8 model when making lending decisions.
You should be able to get a car loan with a 603 credit score without a problem. Truthfully, people can get a car loan with almost any credit score—the difference will be what kind of interest rate you can secure. A score of 603 may get you an interest rate of between 11.92 percent and 4.68 percent on a new car loan.
Is 617 a Good Credit Score? A 617 FICO® Score is considered “Fair”. Mortgage, auto, and personal loans are somewhat difficult to get with a 617 Credit Score. Lenders normally don't do business with borrowers that have fair credit because it's too risky.
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.
What can you expect with a 616 credit score? With a 616 credit score, while you are still considered to have Fair credit, there are plenty of lenders who will be willing to work with you, whether you are looking for a car, a house, or get a credit card.
The most common type of loan available to borrowers with a 616 credit score is an FHA loan. FHA loans only require that you have a 500 credit score, so with a 616 FICO, you will definitely meet the credit score requirements.
The recommended credit score needed to buy a car is 660 and above. This will typically guarantee interest rates under 6%.
Make Sure You Have Good Credit
Having a good credit score is essential if you want to get approved for an auto loan with decent terms. In general, a good FICO® Score☉ ranges from 670 to 739, and a higher score is even better. Auto lenders typically use the FICO 8 or FICO Auto Score models to determine your score.
What credit score is needed to buy a car? You will likely need a credit score of 500 or above to qualify for an auto loan. A credit score range of 780 or better typically gets you the best rates. There are two main factors lenders look at when approving an applicant for an auto loan.
The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus. This means a couple of things: The scores we provide are actual credit scores pulled from two of the major consumer credit bureaus, not just estimates of your credit rating.
An individual with a 619 credit score will typically receive a credit card interest rate of between 20.5 and 16.5 percent. In comparison, someone with excellent credit can receive an average credit card interest rate of 13.5 percent.
Answer provided by. A 612 credit score puts you in the nonprime range. With a 612 credit score, you might get approved, but it's wholly dependent on the lender and their lending practices. Shopping around will help you find the best rate possible.
For best results, you should aim for at least a FICO score of 660 before applying for a new car loan.