As a parent, having your child buy a car for the first time can be a bittersweet experience! You’ll be happy to know that a credit score of 660 is what most lenders will find acceptable when evaluating credit for a car loan.
This number is more of a bare minimum and should not be treated as the best possible figure. When it comes to having a good credit score for a car loan, you’ll find most lenders find a score of 720 to be good. You should get an average interest rate on the loan with this score.
If your daughter’s score isn’t quite as high as 720 yet, she should still be okay to get a loan.
After some time, you can consider refinancing. Before then, to help her get lower rates, you can also be a cosigner on her loan.
Remind your daughter that she will need to have full coverage car insurance on a financed vehicle, so she’ll need to budget for that in addition to paying for the loan. To help her save money, we recommend she try out the Jerry
app. Jerry compares personalized rates from 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!