Even if you’re not buying a car just yet, it’s wise to check your credit score periodically. Federal law allows consumers to obtain one free report each year from each of the three major credit bureaus, Equifax, Experian, and TransUnion. Banks and credit card providers often provide free credit scores to its customers.
There is no minimum credit score needed to buy a car. However, an Experian report found that the average scores for borrowers are 713 for a new-car loan and 656 for a used-car loan.
If you need to, wait 6 or 12 months to see your credit score improve and then start looking for an auto loan. However, if you simply can’t wait and need to buy a car regardless of your current credit score, you should still inform yourself about all the different loans you can get with your current credit score range.
Credit Scores and Buying a Car The credit score needed to qualify for a car loan depends on the lender you are applying with. Different lenders have different criteria, so the minimum score needed to qualify will vary depending on which company is providing the financing.
The average credit score needed to buy a car Borrowers who received financing for a new car in the third quarter had an average credit score of 714.
What Credit Score is Needed to Buy a Car? For these that want to get credit report (not exactly FICO score, but similar to it), we recommend Credit Sesame, because it is totally free and provide reliable identity theft protection. Get your credit score is minutes. Anyone can buy a car, but to finance one you must jump through some hoops and past a few hurdles.
If you have a low credit score, your best financial move is to “clean up” your credit before you begin the car buying process. Improving your credit score enough to jump from the subprime category (from 501-600) to nonprime (601-660) could lower your rate from an average of 16.23% to 9.98%, according to Experian.
Find Out Your Credit Score Before Buying a Car. First off, if you are new to the game of credit, know that your credit score is different from your credit report. Your score is the number that is associated with ‘bad’ or ‘good’ credit and is formed by the information in your credit report.
The credit score needed to buy a car has a bit more wiggle room. According to Experian, the average score for someone financing a used car at the end of 2017 was 656.
Buying a new or used vehicle is an exciting experience. But before you start thinking about what color, make or model you want to purchase, you’ll need to ensure everything is in order: and one of the most important components of this is evaluating your credit score.