What is a good FICO score for auto loan?

What is a good FICO score for auto loan?

Better credit means lower costs A target credit score of 661 or above should get you a new-car loan with an annual percentage rate of around 3.64% or better, or a used-car loan around 5.35%.

What FICO score do banks use for auto loans?

FICO Score 8
There are also several versions of FICO Auto Scores, which are based on your general score and adjusted to predict how likely you’ll repay an auto loan on time. Generally, auto lenders use the FICO Score 8 model. But VantageScore, which the three main credit bureaus founded, is still used quite often.

Which FICO score do car dealers use?

FICO Score 8 vs. The FICO credit scoring model is the most commonly used credit scoring model by auto lenders and car dealerships, and is also the oldest and first-ever credit scoring model. It’s estimated that 90% of auto lenders use the current FICO Score 8 model when making lending decisions.

Is a 650 credit score good to buy a car?

While 650 is considered a “fair” credit score, it is very close to being considered a poor rating. Even dropping a single point will put you in the poor category. As a result, lenders may be a little jumpy when offering you a loan for a car. That said, you shouldn’t have a hard time getting some loan from most lenders.

Do car dealerships check FICO scores?

Many auto lenders use base FICO Scores to make credit-granting decisions. Base FICO scores predict the likelihood that you’ll make a late payment on any credit obligation within the upcoming 24 months. They also feature the traditional score range of 300-850. Lenders use numerous versions of base FICO Scores.

Is 644 a good credit score to buy a car?

A credit score above 740 is optimal for securing an auto loan with good interest rates. According to Experian, 717 is the average credit score for those with a lease and 644 is the average for those with a used car loan. Consider getting pre-approved for a car loan rather than getting it through a dealership.

Do auto lenders use FICO 8?

Most auto lenders use FICO Auto Score 8, as the most widespread, or FICO Auto Score 9. It’s the most recent and used by all three bureaus. FICO Auto Score ranges from 250 to 900, meaning your FICO score will differ from your FICO Auto Score.