Do you have some tips for getting a car loan for a first-time buyer with a 700 credit score?
I'm buying a car for the first time with a car loan. I currently have a credit score of 700. Is this good enough to get a car loan, and do you have any other tips?
Answer provided by
Answered on May 05, 2021
“A 700 credit score is considered good, which means you can probably snag about four percent to five percent on a new car loan or six percent to eight percent on a used car loan.
However, this is only one aspect that a lender considers. They also examine:
- Amount of debt
- Employment status
- Loan-to-value ratio
- Debt-to-income ratio
The first step you need to take is to pay off all your debt, or as much as you can to lower your credit utilization to 10% or under. Next, start thinking of ways to get a bit of extra cash for a down payment. Hopefully, you get approved.
But also remember that if you’re getting a car loan, you’ll also need full-coverage car insurance, not just liability coverage. So go to Jerry to get competitive quotes and figure out how much you’ll spend in a month on your car.”
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