Which Credit Scores Qualify for the Best Auto Loan Rates?
Many people don't realize lenders change their requirements on a regular basis - a lot depends on the economy and local market conditions.
Before the financial melt-down in 2008, many people with credit scores above 650 were qualifying for the best rates.
These days, it's harder to get financing. To qualify for the best auto loan rates, you generally have to have a credit score of 720 or above.
Here's a breakdown of credit scores and the rates they qualify for as of May 2011.
|Credit Score||Interest Rate|
|720 - 850||4.7%|
|690 - 719||6.2%|
|660 - 689||8.1%|
|620 - 659||11.7%|
|590 - 619||17.6%|
|500 - 589||18.6%|
Right now, in order to qualify for the best financing deals such as 0% for 60 months, you need to have a credit score of at least 720.
To see what your credit score is, go to FreeCreditScore.com
My Recommendation for Car ShoppersTrueCar No-Haggle, CarsDirect, and NADAGuides are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid