How Your Credit Score Affects Buying a Car
How Can My Credit Save Me Money?
There may be many auto loan options to consider based on your credit profile. Your credit report and score set the pace for your down payment as well as the interest rate you will pay. Here is a breakdown by credit scores.
- The maximum amount you are permitted to borrow and your interest rate depend on two main factors, the lender and your credit score
- Know your choices; there are many lenders who consider financing
- Typically, a credit score under 620 should not prevent you from borrowing money to purchase a vehicle
620-679
- May be able to negotiate better financing
- Co-signer may be able to help in negotiating process
- May be able to negotiate a lower rate as credit improves
680 and up
- Most flexible financing options
- More likely to receive cash back rebates
- May be eligible for competitive interest rates and zero-interest financing
- May be eligible for zero down payment financing
Tips to Consider when Buying a Car
- Shop rates. Auto loan inquiries will not hurt your score if bunched into a one or two week window. Typically, multiple inquiries are only counted once to make sure rate shopping isn’t penalized.
- Know your credit. Higher credit scores and shorter term loans may increase your chances of securing the best rate.
- Buying vs. leasing? Similar credit rules apply. Know your required down payment along with the term of financing, mileage requirements, and interest rate.
Posted by: Carlson Mortgage – a St. Louis mortgage broker providing home loans in the state of Missouri. We can be reached at (314) 329-7314 seven days a week. Let us be your source for some of the lowest mortgage interest rates in St. Louis on conventional, FHA, Veterans (VA), USDA, Jumbo and condominium (condo) financing. We have 11 years of experience providing home loans and mortgage services in St. Louis that are tailored individually to your unique needs and to your financial situation. We speak English, Spanish and Russian. Call us today to inquire about home loan interest rates. to get pre-approved for a purchase or a refinance mortgage, or if you have any general mortgage questions.
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