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.
The short answer: Absolutely!
Your 715 credit score is well within the “good” range, which means you’ll qualify for an auto loan with most lenders However, the specific terms you receive will depend on several factors, including your credit score, debt-to-income ratio, and employment history.
Let’s dive deeper into what a 715 credit score means for your car-buying journey
What a 715 Credit Score Means for Car Loans
A credit score of 715 puts you at the top of the “good” band (690-719) on the commonly used credit score range of 300 to 850. This score indicates a solid credit history and responsible borrowing behavior making you a desirable borrower in the eyes of lenders.
Here are some of the benefits you can expect with a 715 credit score:
- Access to a wider range of lenders: With good credit, you have more options when it comes to choosing an auto loan. You can compare offers from various banks, credit unions, and online lenders to find the best rates and terms.
- Lower interest rates: A good credit score typically translates to lower interest rates on your car loan. This can save you thousands of dollars over the life of the loan, especially if you’re financing a larger amount.
- More favorable loan terms: Beyond interest rates, a good credit score can also unlock more flexible loan terms. This might include longer repayment periods, lower down payments, and fewer fees.
But keep in mind that, even with a high credit score, you still need to compare auto loans to find the best offer. Don’t settle for the first offer you receive. Compare interest rates, terms, and fees from multiple lenders before making a decision.
How a 715 Credit Score Impacts Car Loan Rates
Your credit score plays a significant role in determining the interest rate you receive on your auto loan. Generally, the higher your credit score, the lower your interest rate will be.
In Q42023, the average interest rate for a new car loan was 7.8 percent, according to Experian’s State of the Automotive Finance Market report. 01% for borrowers with a 715 credit score. For used cars, the average rate was 9. 73%.
Even though these are only averages, they provide you with a decent indication of the kinds of rates that a 715 credit score might lead to.
Here’s a table summarizing average auto loan interest rates based on credit score:
| Credit Score Range | Average New Car Loan Rate | Average Used Car Loan Rate |
|---|---|---|
| 780+ | 4.65% | 6.23% |
| 740-779 | 5.49% | 7.07% |
| 690-739 | 7.01% | 9.73% |
| 660-689 | 9.45% | 12.41% |
| 620-659 | 12.29% | 15.77% |
You can see that your interest rate can be greatly affected by even a small improvement in your credit score.
Thus, before applying for an auto loan, think about improving your credit score if you want the lowest possible rate.
Tips for Getting the Best Auto Loan Rates with a 715 Credit Score
Even though a 715 credit score puts you in a good position, there are still ways to optimize your chances of securing the best possible auto loan rates. Here are a few tips:
- Check your credit report for errors: Mistakes on your credit report can negatively impact your score. Before applying for a loan, review your credit report from all three bureaus (Experian, TransUnion, and Equifax) and dispute any inaccuracies you find.
- Pay down existing debt: Reducing your overall debt can improve your debt-to-income ratio, making you a more attractive borrower to lenders.
- Increase your credit limit: While keeping your credit utilization low is crucial, increasing your credit limit can also help improve your credit score. Just make sure you don’t use the extra credit available to you.
- Shop around for the best rates: Don’t settle for the first offer you receive. Compare rates and terms from multiple lenders to find the best deal.
- Consider getting a cosigner: If you have a limited credit history or a lower credit score, getting a cosigner with good credit can help you qualify for a lower interest rate.
An excellent starting point for getting a good auto loan is a credit score of 715. By heeding the advice provided above, you can improve your chances of obtaining the most favorable terms and rates for your auto loan.
Remember, even a small improvement in your credit score can make a significant difference in the long run, saving you thousands of dollars over the life of your loan.
How to improve your 715 Credit Score
Access to a wide range of credit card and loan products is possible with a FICO® Score of 715, but raising your score can improve your chances of being approved for even more loans with more favorable terms.
A 715 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’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.
Credit Scores for Buying a Car: Current Tiered Rates & Scores (Former Dealer Explains)
FAQ
Can I buy a car with a 715 credit score?
What can you do with a 715 credit score?
What credit score do you need to buy a $30000 car?
What is an excellent credit score to buy a car?
Can you get a car loan with a 715 credit score?
You should be able to get approved for a decent car loan with a 715 credit score, considering that more than 60% of all auto loans go to people with credit scores below 740. Still, it’s important to compare your auto loan options carefully if you want to get a low APR.
What is a good credit score for a car loan?
A target credit score of **661 or above** should get you a new-car loan with an annual percentage rate (APR) of around **6.88%** or better, or a used-car loan around **9.33%** or lower. 2. **The
Is 715 a good credit score?
Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted. A 715 credit score is considered a good credit score by many lenders. “Good” score range identified based on 2023 Credit Karma data.
How to improve a 715 credit score?
For example, you might be able to qualify for the best credit cards and some of the best personal loans. Best Way to Improve a 715 Credit Score: Reduce the credit utilization on your credit card accounts and continue paying bills on time moving forward.