A 682 FICO® score is in the Good range, which is composed of scores between 670 and 739. The average U. S. FICO® Score, 714, falls within the Good range. A large number of U. S. Good FICO® Score customers are regarded by lenders as “acceptable” borrowers, which means you can apply for a wide range of credit products, but you might not be offered the best interest rates or the most exclusive products.
Approximately 9% of consumers with Good FICO® Scores are likely to become seriously delinquent in the future.
Absolutely! Your 682 credit score will qualify you for an auto loan, assuming your income justifies it. However, it’s important to realize that your credit score can make a big difference in the interest rate you get. And this is especially true in auto lending.
What Does a 682 Credit Score Mean for Auto Loans?
A 682 credit score falls within the “Good” range, according to Experian. This means you’re a relatively low-risk borrower and lenders will be more likely to approve your loan application. However you may not qualify for the lowest interest rates.
Here’s a breakdown of how your credit score affects your auto loan:
- Credit Score Range: 670-739
- Average APR for New Car Loan: 6.88%
- Average APR for Used Car Loan: 9.33%
As you can see, even a small difference in your credit score can lead to a significant difference in your interest rate. For example, if you have a credit score of 682, you could expect to pay an average APR of 6.88% on a new car loan. But if you had a credit score of 720, you could expect to pay an average APR of 5.61%. That’s a difference of over 1.25 percentage points, which could save you thousands of dollars over the life of your loan.
How to Improve Your Credit Score for a Better Auto Loan
If you’re not happy with your current credit score, there are a few things you can do to improve it before you apply for an auto loan:
- Check your credit report for errors. Mistakes happen, and sometimes these errors can negatively impact your credit score. You can get a free copy of your credit report from each of the three major credit bureaus (Experian, Equifax, and TransUnion) once a year at AnnualCreditReport.com.
- Pay your bills on time. This is the most important factor in your credit score. Make sure you pay all of your bills, including your credit card bills, utility bills, and rent or mortgage payments, on time every month.
- Reduce your credit card debt. The amount of debt you have compared to your credit limit is called your credit utilization ratio. A high credit utilization ratio can hurt your credit score. Aim to keep your credit utilization ratio below 30%.
- Become an authorized user on a credit card with good credit. This can help you build your credit history without having to open a new credit card.
- Dispute any negative items on your credit report. If you find any errors on your credit report, you can dispute them with the credit bureaus.
Getting an Auto Loan with a 682 Credit Score
Even with a 682 credit score, you may still be able to get a great auto loan. Here are a few tips:
- Shop around for the best rates. Don’t just accept the first loan offer you get. Compare rates from multiple lenders to find the best deal.
- Consider a cosigner. If you have a cosigner with good credit, you may be able to qualify for a lower interest rate.
- Make a large down payment. The more money you put down, the less you’ll have to borrow, which can help you qualify for a lower interest rate.
- Get pre-approved for a loan. This can give you a better idea of what you can afford and help you negotiate a better deal with the dealership.
Getting an auto loan with a 682 credit score is definitely possible. However, it’s important to shop around and compare rates to find the best deal. By following the tips above, you can increase your chances of getting a great auto loan with a low interest rate.
Additional Resources
- Experian: https://www.experian.com/blogs/ask-experian/credit-education/score-basics/682-credit-score/
- LendingTree: https://www.lendingtree.com/auto/what-credit-score-is-needed-to-buy-a-car/
FAQs
Q: What is a good credit score for an auto loan?
A: A good credit score for an auto loan is generally considered to be 660 or higher. However, the higher your credit score, the better the interest rate you will qualify for.
Q: Can I get an auto loan with bad credit?
A: Yes, it is possible to get an auto loan with bad credit. However, you will likely have to pay a higher interest rate. You may also need to make a larger down payment or have a cosigner.
Q: How can I improve my credit score?
A: There are a few things you can do to improve your credit score, such as paying your bills on time, reducing your credit card debt, and becoming an authorized user on a credit card with good credit.
Q: Where can I get an auto loan?
A: You can get an auto loan from a variety of lenders, including banks, credit unions, and online lenders.
Q: How can I compare auto loan rates?
A: You can compare auto loan rates by using a comparison website or by contacting multiple lenders directly.
Understand the benefits of 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 682 Credit Score
Access to a wide range of credit card and loan products is possible with a FICO® Score of 682, but raising your score can improve your chances of being approved for even more loans with more favorable terms.
A 682 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.