In summary, having less-than-ideal credit may not prevent you from obtaining a car loan, but it may have an impact on the interest rate and other loan conditions. Generally, the lower your credit scores, the higher your interest rate will be. However, there might be methods to obtain a better rate, such as obtaining a co-signer or making a down payment. Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect.
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Is 665 a good credit score for a car loan?
Absolutely! While a 665 credit score isn’t the highest, it’s still considered a good score and qualifies you for a prime loan with decent interest rates. This means you’ll avoid the high rates associated with subprime loans, saving you money in the long run.
What does a 665 credit score mean?
Credit scores range from 300 to 850, with 665 falling right in the middle of the prime range (661-780). This means lenders consider you a reliable borrower with a good track record of managing debt.
How does a 665 credit score affect my car loan rates?
The higher your credit score the lower your interest rate will be. With a 665 credit score you can expect to get a prime loan rate, which is significantly lower than the rates offered to borrowers with lower credit scores.
Here’s a breakdown of average car loan rates based on credit score:
| Credit Score Range | New Car Loan Rate | Used Car Loan Rate |
|---|---|---|
| 781-850 (Superprime) | 3.65% | 4.29% |
| 661-780 (Prime) | 4.68% | 6.04% |
| 601-660 (Nonprime) | 7.65% | 11.26% |
| 501-600 (Subprime) | 11.92% | 17.74% |
| 300-500 (Deep Subprime) | 14.39% | 20.45% |
You can see that you can save a lot of money on your auto loan with even a slight improvement in your credit score.
How to get a car loan with a 665 credit score:
1. Shop around for the best rates. Don’t settle for the first offer you receive. Compare rates from multiple lenders to find the best deal. 2. Make a down payment. Making a larger down payment can help you get approved for a lower interest rate and reduce the amount of your loan. 3. Consider a co-signer. You can qualify for a better rate on your loan by having a friend or family member with good credit co-sign it.
Remember, even with a 665 credit score, you can still get a great car loan. By following these tips, you can find a loan that fits your budget and helps you get behind the wheel of your dream car.
Additional Resources:
- Credit Karma: What’s the Minimum Credit Score for a Car Loan?
- Green Light Auto Credit: Is 665 a Good Credit Score?
FAQs:
- Q: What is the minimum credit score needed for a car loan?
- A: There is no minimum credit score required for a car loan, but you will likely need a score of at least 600 to qualify for a loan with a reasonable interest rate.
- Q: Can I get a car loan with bad credit?
- A: Yes, it is possible to get a car loan with bad credit, but you will likely have to pay a higher interest rate. You may also need to make a larger down payment or find a co-signer.
- Q: How can I improve my credit score?
- A: There are several things you can do to improve your credit score, such as paying your bills on time, keeping your credit utilization low, and disputing any errors on your credit report.
Save for a down payment
Putting down money for a car loan could increase your chances of being accepted and possibly lower your interest rate. Additionally, making larger upfront payments will reduce the amount you need to borrow, potentially saving you money on interest over time.
You might be able to obtain a better interest rate or have your loan approved more quickly if you have a co-signer with better credit.
If you haven’t found a rate and loan terms that work for you, continue looking. Credit Karma can help by showing your estimated loan term, interest rate and monthly payment amount across lenders.
While there’s no universal minimum credit score required for a car loan, your scores can significantly affect your ability to get approved for a loan and the loan terms.
According to the Q4 2022 Experian State of the Automotive Finance Market report, borrowers who obtained loans for new cars had an average credit score of 738, while borrowers who obtained loans for used cars had an average credit score of 678.
Lower credit scores can mean fewer offers and higher interest rates. But don’t throw in the towel if your scores aren’t where you want them to be.
Continue reading to find out more about how your credit score affects your chances of being approved for a car loan, as well as how to improve your chances of getting approved and possibly receiving better offers.