If you need a loan in order to buy a car, it is best to make sure that everything in your credit report is correct, however if there are errors, make sure to correct them as soon as possible because this may affect your credit score, which leads to higher interest rates.
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What credit score should you have for buying a car
1. What credit score should you have for buying a car?
If youre going out to buy a new car with your credit card, you will probably look for the best deal there
is. The problem is, you have to have a good credit score to be able to get the best interest rates
available. This is why being knowledgeable about credit score ranges helps, and the more you know
about it, the easier it’ll be for you to improve your credit score.
If you need a loan in order to buy a car, it is best to make sure that everything in your credit report is
correct, however if there are errors, make sure to correct them as soon as possible because this may
affect your credit score, which leads to higher interest rates.
Your credit will range from 300-850, with 850 being the best score, and 300 the lowest. Having a score
between 700-760 can still be good with a 4.4% interest, however, if your score is below 600, you might
have trouble getting a car loan. Although there are dealerships that allow scores below 580, keep in
mind that there is a higher chance for you to pay an interest rate that is 6% or higher.
CREDIT SCORE RANGE
850-700 = Excellent credit score
699-680 = Good credit score
679-620 = Average credit score
619-580 = Low credit score
579-500 = Poor credit score
499-300 = Bad credit score
The higher your score is, the more lenders see you as credit worthy, expect higher interest rates and
that you’ll be spending more money over time. There are websites that help you see the interest rate
you’ll be getting in relation with the credit score that you have. Just make sure that before you get
yourself a car, you check your credit report first. You would want to have enough time if there are
necessary changes required.
What if my credit score is low?
Even if there are deals that let you get a car loan for a very low credit score, it is best not to continue
buying the car. Instead, take your time in raising your credit score, use your card and spend a little, then
try to pay your bills on time. Give yourself a few months and when the time comes, your credit score
should be better than before, you’ll be getting lower interest rates on your loan plus, you’ll be saving
more money in the future.
