What Credit Score is Needed to Buy a Car?
Your credit score is very important when shopping for an auto loan. Your credit score will determine what rate you will get for your loan and this will affect your overall car payment.
Your credit score gives lenders a snapshot of your financial responsibility which helps them assess the likelihood of you paying on time and in full. Having a weak credit score makes it difficult to secure an auto loan with a low interest rate. So what credit score is need to buy a car?
Best Credit Range for Getting an Auto Loan
A credit score above 740 is optimal for securing an auto loan with good interest rates. You can still be approved for a loan with a score the high 600s but can expect to pay higher interest.
Your credit score will also be looked at for a car lease. According to Experian, 717 is the average credit score for those with a lease and 644 is the average for those with a used car loan.
Consider getting pre-approved for a car loan rather than getting it through a dealership. This lets you shop for the best rate and alleviates the pressure of trying to get one on the spot. Keep in mind auto loan-related credit inquires will be grouped together as one inquiry if made within 14 days of one another.