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.
You should be able to get a car loan with a 633 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 633 may get you an interest rate of between 11.92 percent and 4.68 percent on a new car loan.
Don't worry! While a credit score of 630 isn't the best, it's far from the worst. A 630 credit score should be good enough for a car loan, so long as you: Prepare for high interest rates—Lower credit means higher interest rates, so check to see how much of an additional monthly cost you can afford.
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.
Your score falls within the range of scores, from 580 to 669, considered Fair. A 633 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 credit score of 633 isn't “good.” It's not even “fair.” Rather, a 633 credit score is actually considered “bad,” according to the standard 300 to 850 credit-score scale.
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.
As someone with a 630 credit score, you have just crossed over into the “fair” territory of credit score bands. You can qualify for financial products, like a mortgage or car loan, but you will likely pay higher interest rates than someone with better credit.
630 credit score car loan options
A score of 630 may get you an interest rate of between 11.92 percent and 4.68 percent on a new car loan.
The recommended credit score needed to buy a car is 660 and above. This will typically guarantee interest rates under 6%.
What credit score do auto lenders look at? The three major credit bureaus are Experian, TransUnion and Equifax. The two big credit scoring models used by auto lenders are FICO® Auto Score and Vantage. We're going to take at look at FICO® since it has long been the auto industry standard.
A: It really is quite possible to successfully obtain an auto loan with only a 635 credit score. Think about this finance data from Experian: Furthermore, Experian also highlighted that vehicle loans for customers having scores of less than 635 represented twenty percent of all 2019 auto loans!
A good credit score to buy a car is often above 660, as you're then considered a "prime" borrower. There's no industry-wide, official minimum credit score in order to qualify for an auto loan. Generally, the higher your credit score, the better terms you're likely to get on the loan.
For best results, you should aim for at least a FICO score of 660 before applying for a new car loan.
Your score falls within the range of scores, from 580 to 669, considered Fair. A 630 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.
For $40,000 loans, monthly payments averagely range between $900 and $1,000, depending on the interest rate and loan term.
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.
A 625 credit score is slightly below the national average of 711, but that doesn't mean you're limited to undesirable car loan offers. Here are the basics on credit scores and some tips to find a good car loan. Your credit score is the primary way a lender will assess your risk.
A FICO® Score of 670 falls within a span of scores, from 670 to 739, that are categorized as Good. The average U.S. FICO® Score, 711, falls within the Good 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.
Typically, a credit score of 620 or above will enable you to obtain an apartment lease with relatively little trouble. Apartment leasing sources state that credit scores lower than 620 receive a "high risk of default" rating along with a leasing denial.
Pay on time.
One of the best things you can do to improve your credit score is to pay your debts on time and in full whenever possible. Payment history makes up a significant chunk of your credit score, so it's important to avoid late payments.
A 650 credit score can be a solid platform for getting the house you need. It can help you qualify for a mortgage, but it'll likely be one that carries a fairly steep interest rate. It's also a score you can build on to help you get a more affordable loan, today or in the future, when you refinance or buy a new home.
With a credit score of 650-659, you should qualify for a subprime APR rate, which will be higher than someone with a 700 or 800 credit score. The average rate for a used car loan in the 650 to 659 credit score range is 10.48% (47% higher than the average rate for a new car).