Which Credit Scores Qualify for the Best Auto Loan Rates?Everyone knows you need a good credit score to qualify for the lowest auto financing or lease rates, but what exactly constitutes a good credit score?
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
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