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
“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:
  • Income
  • Amount of debt
  • Employment status
  • Residency
  • 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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Eric Schad
Answered on May 05, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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