Your score falls within the range of scores, from 670 to 739, which are considered Good. The average U. S. FICO® Score, 714, falls within the Good range. Consumers with good credit scores are seen by lenders as “acceptable” borrowers, and they may be offered a range of credit products, though perhaps not at the lowest possible interest rates.
Approximately 9% of consumers with Good FICO® Scores are likely to become seriously delinquent in the future.
Buying a car with a 708 credit score is definitely possible, but it’s important to understand what this score means and how it can impact your car-buying experience
Firstly let’s understand what a 708 credit score signifies. According to Upstart Learn, a 708 credit score falls within the “good” credit range which is generally considered a positive indicator of your financial responsibility. This score suggests that you’re likely to be approved for a car loan, but it might not guarantee the best interest rates or loan terms.
Here’s a breakdown of what you can expect with a 708 credit score when buying a car:
Getting a car loan approved: With a credit score of 708, you ought to have no problem getting approved for a car loan. Since most lenders view this score range as relatively low risk, there’s a greater chance that your loan application will be approved.
Interest rates: Your 708 credit score may not get you the best interest rates on a car loan, even though you’ll probably be approved for one. The best rates are usually reserved by lenders for borrowers with excellent credit (750 or above). This implies that, in comparison to someone with a higher credit score, you may wind up paying marginally higher interest rates.
Loan terms: Similar to interest rates, your loan terms might not be as favorable as those offered to borrowers with exceptional credit. This could translate to a higher monthly payment or a shorter loan term.
It is imperative to shop around for the best car loan rates and terms, even if one has excellent credit. Comparing offers from several lenders can help you get the best possible deal because different lenders have different rates and terms to offer.
Here are some more pointers for purchasing a car with a credit score of 708:
- Make a significant down payment: Putting down a larger down payment can reduce your loan amount, potentially lowering your monthly payments and interest charges.
- Improve your credit score: If possible, take steps to improve your credit score before applying for a car loan. This could involve paying down existing debt, reducing credit card utilization, or disputing any errors on your credit report.
- Consider a co-signer: If you’re struggling to qualify for a loan with a favorable interest rate, consider asking a friend or family member with good credit to co-sign the loan. This can improve your chances of approval and potentially secure a lower interest rate.
Remember, a 708 credit score is a good starting point for buying a car. By understanding your credit score and its impact on your car loan options, you can make informed decisions and secure the best possible deal for your new vehicle.
What’s so good about a good credit score
A short credit history with sound credit management practices may be reflected in a good credit score. Additionally, it could indicate a longer credit history tainted by a few errors along the way, like sporadic missed or late payments, or a propensity for relatively high credit usage rates.
Lenders see people with scores like yours as solid business prospects. With a good credit score, most lenders will give credit to borrowers; however, they might not give their best interest rates, and card issuers might not give you their most alluring rewards and loyalty bonuses.
How to improve your 708 Credit Score
Access to a wide range of credit card and loan products is possible with a FICO® Score of 708; however, improving your score can improve your chances of being approved for even more loans with more favorable terms.
A 708 FICO® Score is also towards the lower end of the Good range, so you should definitely watch your score to avoid falling into the more restrictive Fair credit score range (580 to 669).
The best way to determine how to improve your credit score is to check your FICO® Score. You’ll get information about how to raise your score based on particular details in your credit file, along with your score. Youll find some good general score-improvement tips here.
What Credit Score Do Car Dealers Use?
FAQ
Is 708 a good credit score to buy a car?
What is the lowest credit score to buy a car?
How much of a car loan can I get with a 700 credit score?
What credit score do I need to buy a $40000 car?
Is a 708 credit score a good credit score?
A 708 credit score is considered a good credit score by many lenders. “Good” score range identified based on 2023 Credit Karma data. A credit score is a number that lenders use to help assess how risky you might be as a borrower. Credit scores are based on credit reports, which contain information about your credit history.
What credit score do you need for a car loan?
Most used auto loans go to borrowers with minimum credit scores of at least 675. For new auto loans, most borrowers have scores of around 730. The minimum credit score needed for a new car may be around 600, but those with excellent credit often get lower rates and lower monthly payments.
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.