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 is a major life event, and your credit score plays a crucial role in determining the terms of your loan. If you’re wondering whether a 719 credit score is good enough to buy a car, the answer is yes, it is. However, understanding what this score means and how it affects your loan options is essential for making an informed decision.
What Does a 719 Credit Score Mean?
A 719 credit score falls within the “good” range, according to Experian. This means that lenders consider you a relatively low-risk borrower and are more likely to approve your loan application. However, it’s important to note that your score isn’t the only factor that determines your loan terms. Other factors, such as your income, debt-to-income ratio, and employment history, also play a significant role.
How Does Your Credit Score Affect Car Loan Rates?
Lenders typically offer lower interest rates to borrowers with higher credit scores. This is because they view these borrowers as less likely to default on their loans. According to MyFICO, as of November 2022, the average APR on a 60-month new auto loan for someone with a FICO Score of 720 or higher is 5.64%. With a score in the 690-719 range, it’s 6.83%. And for a borrower with a score in the 660-689 tier, the average APR is 9.19%.
This means that even a small difference in your credit score can significantly impact the total amount of interest you pay on your car loan. For example on a $40,000 new car loan, someone with a 730 credit score would pay about $4,000 less in interest than a borrower with a 680, even though both scores are in the “good” category.
Tips for Getting a Good Car Loan with a 719 Credit Score
Shop around for the best rates: Don’t settle for the first loan offer you receive. Compare rates from multiple lenders to find the best deal.
Make a larger down payment: A larger down payment will reduce the amount you need to borrow and can improve your chances of getting a lower interest rate.
Improve your credit score: If you have time before buying a car, consider taking steps to improve your credit score. This could include paying down debt, making on-time payments, and disputing any errors on your credit report.
Consider a cosigner: If you have a low credit score, you may be able to get a better interest rate by having someone with good credit co-sign your loan.
Be prepared to negotiate: Don’t be afraid to negotiate the terms of your loan with the lender. This includes the interest rate the loan term, and the down payment amount.
A 719 credit score is good enough to buy a car, but it’s important to shop around for the best rates and consider ways to improve your score before you apply for a loan. By following these tips, you can increase your chances of getting a good deal on your car loan.
How to keep on track with a Good credit score
Having a Good FICO® Score makes you pretty typical among American consumers. That’s not necessarily a bad thing, but you can raise your score to the Exceptional (800–850) or Very Good (740–799) range with a little more time and effort. Understanding the actions that raise your score and those that lower it will be necessary to move in that direction:
Late and missed payments are among the most significant influences on your credit score—and they arent good influences. Lenders prefer borrowers who make their payments on schedule, and statisticians estimate that late payers are more likely to default on their debt (i.e., let it go 90 days overdue) than on-time payers. If you’ve previously missed or made late payments, breaking the habit will have a positive impact on your credit score. The percentage of your score that is affected by late or missed payments is greater than one-third (35%) of your total score.
Technically speaking, utilization rate, also known as usage rate, indicates how near you are to “maxing out” your credit card accounts. By dividing each outstanding balance by the card’s spending limit and multiplying the result by 100, you can calculate utilization on an account-by-account basis. By totaling all of the balances and dividing by the total of all spending limits, you can find your overall utilization rate:
| Balance | Spending limit | Utilization rate (%) | |
|---|---|---|---|
| MasterCard | $1,200 | $4,000 | 30% |
| VISA | $1,000 | $6,000 | 17% |
| American Express | $3,000 | $10,000 | 30% |
| Total | $5,200 | $20,000 | 26% |
The majority of experts concur that higher utilization rates on individual accounts and higher overall account utilization percentages in percentage E2%80%94 will result in lower credit scores. The closer you are to 20%E2%80%9Cmaxing%20out%E2%80%9D%20any%20cards%E2%80%94that is, the more you damage your credit score by shifting their utilization rates toward 10% of 20100%%E2%80%94. In terms of its impact on your credit score, utilization comes in second only to timely payments; it accounts for nearly one-third (30%) of your credit score.
Its old but its good. With all other things being equal, your credit score will probably be higher the longer your credit history is. If your recent credit history is marred by late payments or high utilization, that doesn’t help much, and if you’re a new borrower, there isn’t much you can do about it. However, if you carefully monitor your credit and make your payments on time, your credit score will eventually rise. Age of credit history is responsible for as much as 15% of your credit score.
New credit activity typically has a short-term negative effect on your credit score. Credit-scoring systems assess your risk of not being able to repay debts whenever you apply for new credit or take on more debt. When that occurs, credit scores usually slightly decline but then rise again in a few months as long as you pay your bills on time. This is why it’s a good idea to “rest” for about six months between applying for new credit, and to avoid opening new accounts in the months leading up to your intended application for a large loan, like a mortgage or auto loan. New-credit activity can contribute up to 10% of your overall credit score.
A variety of credit accounts promotes credit-score improvements. Many credit accounts, both revolving (accounts like credit cards that allow you to borrow against a spending limit and make payments of varying amounts each month) and installment (loans that are paid back over time) are generally favored by the FICO® credit scoring system. g. , car loans, mortgages and student loans, with set monthly payments and fixed payback periods). Credit mix accounts for about 10% of your credit score.
Bankruptcies and other public records are not included in every credit report, so it is impossible to compare their entries to other score influences in percentage terms. One or more of these can significantly reduce your credit score if they are shown on your credit report, taking precedence over all other factors. For instance, a bankruptcy may appear on your credit report for ten years and prevent you from obtaining credit of any kind for the majority of that period.
How to build up your credit score
Because of your strong FICO® score, you have a decent chance of being approved for a range of loans. However, you may be able to qualify for better interest rates and save thousands of dollars in interest over the course of your loans if you can raise your credit score and eventually fall into the Very Good (740-799) or Exceptional (800-850) credit-score ranges. Here are few steps you can take to begin boosting your credit scores.
Consider credit score monitoring. Continually tracking your FICO® Score can provide good reinforcement for your score-building efforts. Rewarding consistent growth while acknowledging that sporadic setbacks are normal can serve as a useful reminder to uphold sound credit practices. Additionally, monitoring will notify you of any abrupt drops in your credit score, which could indicate that there has been unauthorized activity on your credit accounts.
Avoid high credit utilization rates. High credit utilization, or debt usage. According to this measurement, the FICO%C2%AE%20scoring%20system%20bases%20your%20credit%20score%20on%20this%20measurement%E2%80%94, which is the percentage of your available credit limit that is represented by your outstanding payment balances. Try to keep your utilization across all your accounts below about 30% to avoid lowering your score.
Try to establish a solid credit mix. Multiple credit accounts and a variety of credit types, such as installment loans like mortgages or auto loans and revolving credit like credit cards and some home equity loans, are preferred by the FICO® credit-scoring model. This implies that you shouldn’t be afraid to borrow wisely when the time is right—it doesn’t mean you should take on debt you don’t need.
Make sure you pay your bills on time. One of the best ways to raise credit scores is to avoid making late payments and to pay off past-due accounts. Establish a system and stick to it. Find an automated solution that works for you, whether it be sticky notes and paper calendars or smartphone reminders and automatic bill-payment services. After about six months of perseverance, you’ll start remembering things without being reminded—but just in case, keep the reminders handy).
Why a 700 Credit Score SUCKS for a Car Loan / Lease
FAQ
Can I get a loan with 719 credit score?
What credit score do I need to buy a $60000 car?
What is an ideal credit score to buy a car?
Can I get a 40k car with 700 credit score?
Is a 719 credit score a good credit score?
Our content is accurate to the best of our knowledge when posted. A 719 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 percentage of people with a 719 FICO ® score have a mortgage?
39% Individuals with a 719 FICO ® Score have credit portfolios that include auto loan and 31% have a mortgage loan. Public records such as bankruptcies do not appear in every credit report, so these entries cannot be compared to other score influences in percentage 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.
What is a good FICO score for a car loan?
There is no set minimum FICO® Score to get a car loan. However, a good score at 720 or better will get you the best rate. Consider spending some time improving your credit score before shopping for your next car. Even moving up a few points can make a big difference if you have a low score. What is a good credit score?