Top best answers to the question «What's the minimum credit score for a car loan»
- Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can. While there’s no universal minimum credit score required for a car loan, your scores can significantly affect your ability to get approved for a loan and the loan terms.
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People with good credit scores of 700–749 average an interest rate of 5.07% for a new car and 5.32% for a used car. Fair Credit (650–699) The average car loan interest rate for people with a fair credit score of 650–699 is 11.69% for a new car and 11.94% for a used car. Poor Credit (450–649)
On the other end of the spectrum, borrowers with scores below 669 are often considered “subprime.”. That means they’ll pay more to finance a car. Though the FICO score is the one used by most lenders, some use a credit score known as the VantageScore, which also uses a scale ranging from 300 to 850.
To buy a car, a good credit score is normally above 620. However, there is no “official” industry-wide minimum credit score in order to qualify for a loan.