Buying a car can be confusing because auto lenders don't use the same categories or ranges that the credit rating agencies do. While credit rating agencies consider a score of 580 to 669 to be in the “Fair” category, you are considered to be in the “subprime” category of car loans once your credit score dips below 600.
With a score of 660 to 669, 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 660 and 669, you'll have to be careful about your credit if you're considering applying for a car loan.
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.
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.
The types of programs that are available to borrowers with a 669 credit score are: conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, and non-prime loans. With a 669 score, you may potentially be eligible for several different types of mortgage programs.
Here's how to improve a 669 credit score:
Pay Off Collections Accounts: Once you bring a collection account's balance down to zero, it stops affecting your VantageScore 3.0 credit score. Reduce Utilization: It's best to use less than 30% of the available credit on your credit card accounts each month.
With a 670 credit score, the FICO Loan Calculator now estimates that you might qualify for an APR around 7.89%. Based on that rate, your monthly payment on the same $38,000 auto loan would be $768.
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 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.
Your score falls within the range of scores, from 670 to 739, which are considered Good. The average U.S. FICO® Score, 711, falls within the Good range.
The recommended credit score needed to buy a car is 660 and above. This will typically guarantee interest rates under 6%.
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.
A 700 credit score puts you firmly in the prime range of credit scores, meaning you can get a competitive rate as long as you shop around, have good income, and have a solid debt-to-income ratio. A 700 credit score gets an average car loan interest rate of 3% to 6% for new cars and 5% to 9% for used cars.
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.
A score between 620 and 679 is near ideal and a score between 680 and 739 is considered ideal by most automotive dealerships. If you have a score above 680, you are likely to receive appealing lease offers. However, if your score is below 660, you still have a 22 percent chance of earning acceptance.
676 credit score car loan options
A 676 score should easily secure you a car loan. On average, your score should get you an interest rate between 3.6- 4.6 and between – and 6 percent on a used car. Scores above 720 are more likely to net you the lower percentage rates.
Our Verdict: Credit Karma has better credit monitoring and more features, but Experian actually gives you your “real” credit score. Plus it offers the wonderful Experian Boost tool. Since they're both free, it's worth it to get both of them.
Credit Karma touts that it will always be free to the consumers who use its website or mobile app. But how accurate is Credit Karma? In some cases, as seen in an example below, Credit Karma may be off by 20 to 25 points.
The types of programs that are available to borrowers with a 670 credit score are: conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, and non-prime loans. With a 670 score, you may potentially be eligible for several different types of mortgage programs.
If you have a credit score of 680, the maximum amount you can borrow for a personal loan is $100,000. $100,000 is the maximum loan amount for personal loans no matter what your credit score is.
You will likely need a credit score of at least 660 for a $20,000 personal loan. Most lenders that offer personal loans of $20,000 or more require fair credit or better for approval, along with enough income to afford the monthly payments.