What Credit Score is Needed to Finance a Car?

Car keys and a credit card on top of a signed car loan

The credit score to finance a car that you need depends on what dealership you shop at. However, most dealers will accept credit scores of 300-850 or up. That said, your credit score will determine what deal you’re able to get, and the lower your credit score the higher your monthly payments and interest rate will be. A “good” credit score is anything over around 570, and a “poor” credit score is anything under it. Run a credit check on yourself before you start shopping for a new car to help you prepare for the financing costs.

One of the most common questions we hear from car shoppers is, “What credit score is needed to finance a car?” Your credit score is an important factor when car shopping because it can affect your APR or even whether you qualify for a loan in the first place. If you are trying to secure affordable auto financing near Toledo or Marshalltown, you will want to keep the following information in mind. A new car can be even more affordable than you may think.

What Credit Score Do You Need to Finance a Car?

On average, the credit score you need to secure an auto loan on a new car was 714. For a used car, that number is 655. That doesn’t mean that you can’t get a car if your score is lower than that. However, when you have a higher credit score, your interest rates will be lower. Here is how credit scores are classified:

  • Superprime: 781 to 850
  • Prime: 661 to 780
  • Nonprime: 601 to 660
  • Subprime: 501 to 600
  • Deep Subprime: 300 to 500

How to Get Car Financing With Bad Credit

If your credit score is less than ideal, car finance loans are not out of reach. If you are worried about how your credit score will affect your auto loan, there are a couple of simple steps you can take to get car financing with bad credit near Cedar Rapids.

  • Focus on Positives: If you demonstrate positive financial actions, you can secure a loan even with bad credit. If your poor credit score is due to business debt, but you’ve been diligent in making your car payments on time, lenders might be more lenient.
  • Bring Proof: You’re more likely to get financing if you can show pay stubs, proof of address, cell phone bills, auto insurance documents, and proof that you’re currently working.
  • Show Collateral: If you own a home or are able to put down a substantial down payment (at least 25%), you’re far more likely to qualify for auto financing as well as get a better interest rate.

You Likely Have the Credit Score Needed to Finance a Car with Thys Automotive Family

Are you still unsure of the answer to, “What do I need to finance a car?” Speak with our finance team,  at Thys Automotive Family. There is a good chance that you have what you need to get approved for a vehicle that you will love for many years to come. Contact us today if you have any questions. We can also explain more about liability insurance and MSRP.

Thys Automotive Family 41.8857049, -92.2809576.