Question

What credit score is needed to get an auto loan?

Answer 1

When getting an auto loan or car loan the credit score that most lenders look for is between 600 to 700.

The higher your credit score the more chance you have at getting approved for the auto loan and the less interest you'll usually pay for your auto loan.

The lower your credit score the less chance you have at getting an auto loan and the higher interest rates you'll pay on the auto loan.

If you have a credit score of less than 600 then you're unlikely to get approved for a car loan especially if the car loan is for a new car.

You can usually get approved for a used car loan from a used car lot if you have lower credit scores or you can get a cosigner with a good credit score.

If you have a bad credit score then you can use a secured credit card to help build your credit and then apply for a new auto loan.

I had to wait until I had at least a 700 credit score to get a new car loan but was able to get a used car loan with my 640 credit score.

Some used car dealers will also work with people who have bad credit and you pay a down payment and then pay monthly too the car dealer and they improve your credit score as long as you keep your car payments up and do not miss the car payments.

Answer 2

If you want to get a loan at the bank, I think your credit score should be not lower than 600. Even if you don't take it out, you can look for a good loan company. My advice is to use a loan payments calculator. It allows to find out how much you will overpay (it depends on the interest rates). Also, you will know your monthly payment at once. In my opinion, it is very convenient.

Answer 3

Taking a loan is not a problem if you need money

Answer 4

Why do we need a credit rating and credit history, why do financial companies rely on them to make a decision on a loan?

Answer 5

Hello, the credit history includes comprehensive information about all the borrower's loans and the discipline of their repayment. Credit organizations most often rely on a credit rating when deciding whether to lend money. This is due to the fact that the analysis of credit history takes more time for specialists and the scoring system. Therefore, in order to speed up the process of making a decision on a loan, banks and financial institutions prefer to request credit rating data. For example, apply.credit9.com does this in just a few minutes.