In a Nutshell Compared to lower scores, a good credit score can unlock better credit opportunities. Although credit and loan applications are evaluated by lenders based on a number of criteria, applicants with better credit scores typically have a better chance of being approved. Good credit scores can also help you qualify for lower interest rates and more-favorable loan terms. That said, if you’re aiming to go higher, there’s still room for improvement. Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect.
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Yes, you can still get an auto loan with a credit score of 727. Indeed, more than 60% of all auto loans are granted to borrowers whose credit scores fall below 640, placing you in a strong financial position based on your 727% score.
However, while you’ll likely get approved, the interest rate you receive will depend heavily on your credit score A higher credit score typically translates to a lower interest rate, which can save you thousands of dollars over the life of your loan
Here’s what you need to know about buying a car with a 727 credit score:
The good news:
- You’re likely to be approved for an auto loan. With a 727 credit score, you’re considered a good credit risk by most lenders, which means you’ll have a wide range of loan options available to you.
- You may qualify for a competitive interest rate. While your interest rate won’t be as low as someone with excellent credit, it will likely be lower than someone with a fair or poor credit score.
- You have options to improve your credit score before buying a car. If you’re not happy with the interest rates you’re being offered, you can take steps to improve your credit score before applying for a loan. This could include paying down debt, disputing errors on your credit report, or becoming an authorized user on a credit card with good credit history.
The not-so-good news:
- You may not qualify for the best interest rates. Even with a good credit score, you may not qualify for the lowest interest rates available. This is because lenders also consider other factors when determining your interest rate, such as your income, debt-to-income ratio, and the length of your loan term.
- You may have to make a larger down payment. If you have a lower credit score, you may be required to make a larger down payment on your car loan. This is because lenders want to reduce their risk of lending to you.
Here are some tips for buying a car with a 727 credit score:
- Shop around for the best interest rate. Don’t settle for the first loan offer you receive. Get quotes from multiple lenders to compare rates and terms.
- Make a larger down payment if possible. This will reduce the amount you need to borrow and can help you qualify for a lower interest rate.
- Consider a shorter loan term. A shorter loan term will mean higher monthly payments, but it will also mean you’ll pay less interest overall.
- Improve your credit score before you apply for a loan. This will give you the best chance of getting the lowest possible interest rate.
Here are some resources that can help you buy a car with a 727 credit score:
- Credit Karma: Credit Karma offers free credit scores and reports, as well as auto loan pre-qualification tools.
- Autotrader: Autotrader is a website where you can search for new and used cars, compare prices, and get pre-approved for an auto loan.
- LendingTree: LendingTree is a website that allows you to compare auto loan rates from multiple lenders.
The ability to purchase a car with a credit score of 727 ultimately depends on your unique financial circumstances. Nonetheless, you can improve your chances of obtaining a favorable rate on your subsequent auto loan by heeding the advice provided above.
Age of open accounts by credit score range
| Credit score range | Average age (years) |
|---|---|
| 300–639 | 2.4 |
| 640–699 | 3.6 |
| 700–749 | 4.0 |
| 750–850 | 7.5 |
Ranges identified based on 2023 Credit Karma data.
A 727 credit score is considered a good credit score by many lenders.
| Generation | Percentage |
|---|---|
| Gen Z | 24.3% |
| Millennial | 16.1% |
| Gen X | 15.3% |
| Baby boomer | 15.8% |
| Silent | 12.8% |
“Good” score range identified based on 2023 Credit Karma data.
You may have an easier time getting approved for mortgages and auto loans with better terms and lower interest rates if your credit score is high. You might also be approved for credit cards with valuable sign-up bonuses and attractive rewards programs.
Why are these three-digit figures so important to your financial health? Because lenders use your credit scores to determine how likely you are to repay loans that they make to you. Thus, having a high credit score can encourage a lender to lend you money on terms that work for you. Although it might not be sufficient to obtain the best terms or financial products, it’s a sign that you’re approaching excellence.
You might be surprised to hear that there are several different credit scores available because people frequently refer to their “credit score” as though they only have one. The credit-scoring model that underpins a credit score varies based on the provider of the score, such as VantageScore or FICO. These models can pull information from Equifax, Experian, or TransUnion—the three major credit bureaus—to create your credit scores.
Each model has its own standard for what qualifies as “good. To further complicate matters, it’s frequently unclear which credit score, model, or data bureau a specific lender is using, as well as what additional variables the lender might consider in addition to scores.
Keeping this in mind, use each credit score as a gauge to better understand your overall credit situation and track your progress. No single score you look at is a guarantee that you’ll qualify for certain products or offer terms.
Here’s what else you need to know about building, maintaining and using a good credit score.
Can I buy a car with a 600 credit score?
FAQ
Is 727 a good credit score for a car loan?
What is the lowest credit score to buy a car?
How much of a car loan can I get with a 700 credit score?
How big of a loan can I get with a 720 credit score?
Is a 727 credit score a good credit score?
Our content is accurate to the best of our knowledge when posted. A 727 credit score is considered a good credit score by many lenders. “Good” score range identified based on 2023 Credit Karma data. With good credit scores, you might be more likely to qualify for mortgages and auto loans with lower interest rates and better terms.
What is a good credit score for a car loan?
Interest rates differ based on your credit score, so knowing what to expect on average can help you budget for your car. Usually, higher scores mean lower interest rates on loans. A target credit score of 661 or above should get you a new-car loan with an annual percentage rate of around 7.01% or better, or a used-car loan around 9.73% or lower.
Do you need a good credit score to buy a car?
That’s why most people who end up taking out an auto loan have a good or excellent credit score. The lower your credit score, the lower your chances of you being able to buy a car. If your credit score needs a lot of work, it may be hard to find a lender who will approve you for a car loan.
Can I buy a car if my credit score is bad?
The lower your credit score, the lower your chances of you being able to buy a car. If your credit score needs a lot of work, it may be hard to find a lender who will approve you for a car loan. If you’re not able to qualify for an auto loan on your own, you may need to find a co-signer with better credit.