What Credit Score is Needed to Finance a Car?

What You Need: The Credit Score to Finance a Car

Your credit score is like a GPA for your money. It reflects your history with paying bills and acquiring debt. The higher your credit score, the lower interest rate you’ll get on your auto loan. Here’s the average auto loan interest rates on the FICO scale as of March 2021:

Bad Credit Car Finance How-To

Even if you have bad credit – anything below 650 – you can still get a car loan in San Diego. In fact, purchasing a car you can afford and making the payments on time will improve your credit score. Here are some other ways to finance a car when your credit isn’t so great.

• Don’t get discouraged. Look at how your credit score got low in the first place and see where it’s improved. If you’ve been rebuilding credit, your credit score might still be low but your recent prompt payment history will appeal to lenders.
• Bring proof of your income and stability. Pay stubs, proof of address and insurance, and proof that you’re currently employed can help.
• Make a higher down payment. This will mean that you’ll need to borrow less money.
• Shop around to different lenders and see how their car loan rates compare. Consider a loan for a used car instead of a new car. Used car loan rates are a few percentage points lower.

Let BMW of Escondido Help You Finance Your New BMW!

Contact BMW of Escondido and we’ll answer all of your questions about credit scores, financing, and how to get a car loan. We can help you understand your credit score, then choose the best car that fits your budget – something a non-dealership lender can’t do.