What is the standard credit score to purchase a used car?
Miss Stylish Ladi asked:
I could not get a car since my credit is not good enough. Does anyone know what is the actual credit score to obtain in order to purchase a used car? Specific answers would help. Please no “IDK” answers.
I could not get a car since my credit is not good enough. Does anyone know what is the actual credit score to obtain in order to purchase a used car? Specific answers would help. Please no “IDK” answers.
Different banks use different scores. I would say that equifax is the most common in the car biz. Good luck.
As I understand it, the car loan market is typically lumped into 3 categories:
- The sub-prime market. These are individuals who have credit scores less than 620. Bank financing is usually difficult (or impossible) - When it is provided, it’s usually contingent on substantial money down.
- The mid-prime market. These are individuals between 620 and 680 who can probably obtain financing (potentially without money down), but most likely will have to accept an interest rate well above 10%.
- The prime market. These are individuals with credit scores above 680 and will command a respectable rate between 5% and 9%, depending on the term of their loan and other factors. Loans with no money down are usually not a problem, given the fact that risk of defaulting is percieved to be low.
If you want easily get financing from a bank with little money down, you’ll probably have to bring your credit rating at least up to 650 or more.
your “score” is only a small part of what goes into determining if you are worthy of obtaining credit.
Your job history, your income, how much debt you have. What type of car you want to buy are all factors.