Is a 13% interest rate a good car loan rate if I have a 675 credit score?

I've been shopping around for car loan rates, but the best I can find is 13%. Is this a good rate if my credit score is 675?

Answer
Your score of 675 puts you in in the prime range of credit scores, which makes a 13% interest rate seem too high for you at first glance. However, this may be the best you can get if you have a limited credit history or are opting for a long-term loan.
As of September 2021, the average car loan rates for prime borrowers are 3.48% for a new car and 5.49% for a used car. While prime borrowers don’t qualify for the best rates out there, they can expect decent loan rates if they have steady income and a low debt-to-income ratio.
If you’re opting for a loan of 84 months or more, expect to pay a high interest rate. If you want to balance low monthly payments with a better interest rate, consider a 60-month or 72-month loan.
If you’re looking to free up some extra cash, consider that you can probably find a cheaper car insurance policy. Use Jerry to find low rates without compromising on coverage. If you find a new policy you like, Jerry can even help you cancel your old one!
Eric Schad
Answered on Oct 28, 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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