What is the Average Credit Score Needed to Finance a Car?

Whether you’re shopping for a new vehicle or a used one, Cooley Mazda offers a wide selection of budget-friendly options. If you plan on financing your next vehicle, it’s not uncommon to have some questions, one of the most common being, “What is the average credit score needed to finance a car?” To ensure you find the right vehicle for both your budget and your Albany drives, our finance center answers this question in detail below.

What Credit Score Do You Need to Finance a Car?

First, let’s answer the question, “What is the average credit score needed to finance a car?” The average is 735 for new vehicles and 690 for pre-owned cars. With that said, these are only averages; most lenders require a credit score of at least 600 to qualify for a traditional car loan. All car shoppers fall into one of five categories, which lenders use when determining your loan eligibility:

• Superprime – 781 to 850
• Prime – 661 to 780
• Non-prime – 601 to 660
• Subprime – 501 to 600
• Deep Subprime – 300 to 500

How Do You Get an Auto Loan with Bad Credit?

Even if you fall below the average or below the minimum needed to finance a car, you still likely have options worth exploring. Our finance team is more than happy to work with buyers from Troy to Latham and beyond, regardless of credit history. So, how do you get an auto loan with bad credit? Here are some of our suggestions:

• Bring Documentation – Gather proof of your income and any other documentation that shows you’re a responsible borrower who can repay what they owe. This might include pay stubs, current car insurance documents, and any prior loan pay-off letters or proof of paid-off balances, like credit card statements.
• Show Collateral – Collateral is simply a way to secure the repayment of your auto loan. For instance, a homeowner may be able to use their home equity as collateral for an auto loan, which can increase your chances of getting approved.
• Make a Sizable Down Payment – If possible, put at least 25% down toward the purchase of your vehicle. This shows lenders you’re a serious buyer–and it ultimately decreases how much you’ll need to finance.

Contact Us to Learn More About Auto Financing and Credit Scores

We’ve answered some important questions here: What is the average credit score needed to finance a car? How do you get an auto loan with bad credit? If you have any further questions, don’t hesitate to contact us or stop by and visit our Rensselaer location. Whatever your credit history might be, we will work to get you into a vehicle that surpasses your expectations–not your budget.