Kreditiweb community
How can we help you?
Question

Ash Hill
January 10, 2020
Credit score for an auto loan
Is it necessary to be excellent? Mine is 590, not the best but i hope i can get one
0
0
Answer this question
1 answer

Kreditiweb
Asesor financiero
January 14, 2020
Kreditiweb
Asesor financiero
January 14, 2020

Hello Ash,
There is no specific requirement in credit score to get a car loan. There are multiple lenders - banks, credit unions, online lenders, etc. - and dealerships out there trying to sell, so they won’t let your credit be an impediment to make the purchase. However, your credit will define your loan terms, interest rates and fees. So, the better your credit is, the better conditions you will get for your auto loan.
According to Bankrate, this is an average car loan rate according to credit score:
Credit score range |
New car loan |
Used car loan |
Super prime: 781 to 850 |
4.19% |
4.69% |
Prime: 661 to 780 |
5.01% |
6.38% |
Nonprime: 601 to 660 |
7.91% |
10.91% |
Subprime: 501 to 600 |
12.17% |
16.78% |
Deep subprime: 300 to 500 |
14.88% |
19.62% |
We would recommend that unless you are okay by paying a bit more for interests and you cannot wait, to work on your credit and increase it a few points in order to upgrade the conditions you may get for the auto loan. You could also save up or use some of your cash to put a downpayment on your next vehicle, so it can improve the conditions of your loan and guarantee less interests.
Want to check rates for your auto loan? Use our loan comparator and find the best car loan for you.
Have we been useful?
If the answer solved your question, please help us by rating our service
Answer the question
Lastest questions
April 14, 2020
Checking my credit score onlineApril 14, 2020
PAYDAY LOANApril 14, 2020
How risky is filling out online applications?April 14, 2020
Microloan of 100 bucksApril 09, 2020
Contacting LENDKEYApril 09, 2020
Rates for a payday loan