What Credit Score Is Needed To Buy A Car?
There’s something very exciting about picking out and owning your own car. However, buying a car is a large purchase, and for most people, it’s difficult to have all of the cash upfront to pay for it. Therefore, getting a car loan is very common. The interest rate that comes with this car loan is directly tied to your credit score, so the better your credit score, the lower the interest you will need to pay for your car loan. Here’s everything you need to know about what credit score is needed to buy a car.
Minimum Credit Score By Auto Lender
The minimum credit score from the largest US auto lenders required is below as of this writing. For the most up-to-date information, you should contact these auto lenders directly to ask about their exact rate for you.
|Auto Lender||Minimum Credit Score|
|Bank of America||600|
|Fifth Third Bank||640|
How your credit score affects your ability to obtain an auto loan
At Credit Upflow, we don’t recommend you take out a loan just because your credit score is above the minimum credit score allowed. This is because the interest you’d be paying may be a huge premium to the actual cost of the car. Typically, those with excellent credit scores (750+) would get the best car loan rates, sometimes even a 0% interest rate if there’s a promotion being offered. It’s typically best to have at least a credit score of 650, and to aim for a credit score of at least 700 to avoid paying a major premium on car loans.
|FICO Score||Ability to Obtain Auto Loan|
|300 – 559||Extremely difficult to obtain traditional loans. Should start credit repair ASAP.|
|560 – 649||May qualify for some loans, but interest rates will be very high. Should start credit repair ASAP.|
|650 – 699||Eligible for many traditional loans, but the interest rates and terms will not be the best. Credit repair would greatly help for these cases.|
|700 – 749||Will qualify for almost all loans, with low interest rates (though not necessarily the best offered). Credit repair will still help in these cases.|
|750 – 850||Easily qualify for most loans and lines of credit with low interest rates. Credit repair will help for those on the lower end of the range.|
If you’d like to learn more about how to repair your credit, view your Credit Repair Guide.