What Is A Good Credit Score To Buy A Car?

What is a good credit score to buy a car

What is a good credit score to buy a car? Loan companies use your credit score or FICO score to determine which percentage of interest you will pay on a car loan.

See the following credit score for a good credit score to buy a car:

Credit Score Range      New Car Loan         Used Car Loan
781 to 850                       2.6 percent              3.4 percent
661 to 780                       3.59 percent            5.12 percent
601 to 660                      6.39 percent            9.47 percent
501 to 600                    10.65 percent           15.72 percent

A good credit score to get a car loan may also be determined by the auto score on the credit reporting agencies credit report. For example, if the lender is determining your car loan based on an Experian credit report, then he’ll likely be using Auto Score 8 and 2. Equifax would be Auto Score 8 and 5 while TransUnion is Auto Score 8 and 4. The Base FICO Score will probably be FICO Score 8.

FICO Auto Score Explained

You can get an approximation of your FICO Score for free through a variety of tools including credit cards and websites. Or you can pay to gain access to your official FICO scores. If you elect to pay for access, then you should be sure to pull the specific scores your lender is using.

Car lenders don’t share about which versions of your FICO they are using

They may use a good credit score to buy a car from the FICO Auto Score or the normal FICO score.  However, you may be able to figure out the scores they’d be using based upon which credit bureau from which the lender pulls your report. For example, if the lender is determining your car loan based on an Experian credit report, then he’ll likely be using Auto Score 8 and 2. Equifax would be Auto Score 8 and 5 while TransUnion is Auto Score 8 and 4. The Base FICO Score will probably be FICO Score 8. You can find more details here on MyFICO.

You can also call and ask the finance department at a dealership which bureau they pull from or which scores they use before you go in to negotiate for a car loan. In order to get the best rate, you should also be doing all the research, including credit repair, about borrowing for a car before you go into a car dealership.