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What’s a good credit score for a car loan?
I had to declare bankruptcy a few years ago for various reasons, and I’ve been working hard to build my credit score back up. Now I need a car, but I’m not sure if my credit is up to snuff. What’s a good credit score for a car loan?
Michael Miserendino · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Bankruptcy is never fun to handle, and I’m sorry to hear you had to go through one. While things may seem bleak after a bankruptcy, if you buckle down and practice good financial management you may find yourself in a better financial position than before.
According to most lenders, a credit score of 660 is generally enough to qualify for a car loan. Any lower than this and your odds of finding a lender may decline significantly, so be wary. With a score of 660, you may also find yourself paying slightly higher than average interest rates.
To avoid paying more than the average car loan, a score of 720 is the benchmark lenders seem to look for. With a score of 720, your interest rate should be around average, and it will only improve as your score increases, so make sure to make those payments!
Getting a car loan and making payments quickly
is a great step to building your credit back up, and it’s something that can be accomplished at a surprisingly low score. If your credit score increases after getting your car loan, then you may be paying an unfair interest rate. To fix this, you will need to consider refinancing. Remember that when you finance a vehicle, lenders will require full coverage car insurance on the car to protect their assets. To find the lowest rates on car insurance, try using the number-one-rated car insurance app,
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