Will a small drop in credit score affect your APR when applying for a car loan?
Typically, my credit score hovers around 770, but due to higher credit card utilization, it fell to 755. Will this small drop in credit affect my APR on a potential car loan?
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Answered on Apr 27, 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.
“With such a minor drop, chances are that this change in your credit score will not affect the APR you’re offered. Being in the 740 to 799 range puts you in the “”very good”” category.
While you might get an even better rate with a credit score of 800 or more, your current score will get you a great rate in all likelihood. Just make sure to shop around to get the best deal possible.”
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