You can break up the cost of a new or used car into manageable monthly payments by applying for an auto loan. We have created a helpful car loan calculator to assist you in determining how much interest a car loan will cost you based on your credit score.
This auto loan calculator calculates how much you’ll pay each month and in interest based on your credit score, current interest rates, and the length of the loan. Car Value: $ Down Payment: $ Loan Term Length: 48 Months Credit Score:
Notice: The numbers input on this calculator’s input page and the results it produces are merely for illustrative purposes. The calculator presented does not reflect the view of the Issuing Banks. This calculator does not guarantee the availability of, or your eligibility for, any particular product offered by any financial institution. It is not meant to provide tax, legal, or financial advice. Any particular product that a financial institution offers will have different terms and conditions, which could have an impact on the calculator’s results. Please consult with qualified professionals to discuss your situation. The interest rates for both new and used cars in the credit score band are derived from Experian’s State of the Automotive Finance Market – Q1 2023 report. Current rates may be higher or lower.
The interest rate you’ll get on a car loan depends heavily on your credit score. If you have a 550 credit score, you’ll likely fall into the “subprime” category, which typically comes with higher interest rates than those with good or excellent credit.
Here’s a breakdown of what you can expect:
| Credit Score Range | Average New Car Rate | Average Used Car Rate |
|---|---|---|
| 300-500 (Deep Subprime) | 13.42% | 20.62% |
| 501-600 (Subprime) | 10.79% | 17.46% |
| 601-660 (Nonprime) | 8.12% | 12.08% |
| 661-780 (Prime) | 5.82% | 7.83% |
| 781-850 (Super Prime) | 4.75% | 5.99% |
As you can see, the lower your credit score, the higher your interest rate will be.
Let’s say you have a credit score of 550 and you want to borrow $20,000 for a used car. At an interest rate of 1746%, your monthly payments would be $50245, and you would pay $6,147.20 in interest over the life of the loan.
However, if you could improve your credit score to 600, you could qualify for a lower interest rate of 1208% This would bring your monthly payments down to $427.44 and save you $2,872.76 in interest over the life of the loan.
Here are a few things you can do to improve your credit score:
- Pay your bills on time. This is the most important factor in your credit score.
- Keep your credit card balances low. Aim to use no more than 30% of your available credit.
- 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 account.
- Dispute any errors on your credit report.
By taking steps to improve your credit score, you can save a significant amount of money on your car loan.
Here are some additional resources that you may find helpful:
- CNN Underscored: Auto loan interest rates by credit score in 2024
- Self.inc: Car Loan Interest Rate by Credit Score Calculator
Remember, the best way to get the lowest interest rate on a car loan is to have good credit. So start working on improving your credit score today!
Disclaimer: The information provided in this article is for general knowledge and informational purposes only, and does not constitute professional financial advice. It is essential to consult with a qualified financial advisor for any financial decisions or before making any investments.
Car Loan Interest Rates for Nonprime Credit Scores (601 – 6
If your credit score is between 601 and 660, this is classed as Nonprime. If you’re looking for a new or used car, you should be able to get a lower interest rate on an auto loan because lenders will view you as a low-risk borrower.
The latest average APR rates for a new car is 8. 12%, and for a used car are 12. 08% if you have a Nonprime credit rating. These can vary depending on the length of the loan term you choose.
Car Loan Interest Rates for Super Prime Credit Score (781 – 8
If your credit score is between 781 and 850, you’re classed as having Super Prime credit. 850 is the highest possible credit score on the VantageScore and FICO rating systems. Lenders will view borrowers with Super Prime credit scores as extremely financially responsible, so they are likely to offer the lowest interest rates on auto loans. This implies that you will pay less overall than someone with a lower credit score if your score is within this range.
When purchasing a new car, an individual with a credit score between 781 and 850 currently pays an average APR of 4. 75% and 5. 99 when buying a used car.
How to Get a Credit Card with No Credit
Without credit, you can still obtain a credit card, but you’ll need to know what kinds of accounts to apply for (as well as which ones to avoid).
How Do You Get A Car Loan If Your Credit Is Bad?
FAQ
What APR can I get with 550 credit score?
What would my APR be with a 500 credit score?
|
Credit score
|
Average APR, new car
|
Average APR, used car
|
|
Nonprime: 601-660.
|
9.60%.
|
14.12%.
|
|
Subprime: 501-600.
|
12.28%.
|
18.89%.
|
|
Deep subprime: 300-500.
|
14.78%.
|
21.55%.
|
|
Source: Experian Information Solutions.
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|
|
Is 550 a good credit score to buy a car with bad?
What will my APR be with a 600 credit score?
|
Credit score
|
Average APR, new car
|
Average APR, used car
|
|
Prime: 661-780.
|
7.01%.
|
9.73%.
|
|
Nonprime: 601-660.
|
9.60%.
|
14.12%.
|
|
Subprime: 501-600.
|
12.28%.
|
18.89%.
|
|
Deep subprime: 300-500.
|
14.78%.
|
21.55%.
|