Is 645 a good enough credit score for a car loan?

I want to get a car loan, but my 645 credit score makes me worried. Is this a good enough credit score?

Answer
A 645 credit score puts you in the nonprime range for all credit scores, which is about right in the middle. In the case of a car loan, you can probably find a lender to approve you, but you might not fall in love with the interest rate they provide you.
The average car loan interest rate for someone with your credit score is 6.61% for a new car or 10.49% for a used car; not optimal, but hardly the worst rates you’ll find. If you have steady income and a low debt-to-income ratio, you should be able to find a lender willing to give you a decent rate.
Keep in mind that the length of the loan and the amount of your down payment will also factor into how much you’re going to pay in interest.
Shopping around for a car loan is the only surefire way to make certain you can get the best rate and starting with local banks and credit unions might yield better results. If you can find a decent rate, use the time to start rebuilding your credit score, wait six months to a year, and then see what your credit score looks like then.
Once you do get that loan, remember to shop around for car insurance. Lenders will require you to carry full coverage for your financed vehicle, which can get pricey. That’s where the number-one-rated car insurance app, Jerry comes in. Jerry compares rates with more than 50 top providers, including Nationwide, Allstate, and Travelers, and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!
Eric Schad
Answered on Nov 23, 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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