What Credit Score is Needed to Finance a Car? 

You’ve been browsing the new BMWs at BMW of Escondido, and you’re wondering if you can afford one for driving in San Marcos or Poway. When it comes to financing, where do you begin? Understanding your credit score is a good start. We can help you learn how car financing works, but first, let’s take a look at 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 October, 2019:

  • Credit score over 750: 4.24%
  • Credit score 700-749: 4.49%
  • Credit score 650-699: 7.92%
  • Credit score 450-649: 14%
  • Credit score below 449: 18.4%

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. To see how much car you can afford, calculate your payments in advance. 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.

"WARNING*: Operating, servicing and maintaining a passenger vehicle or off-road vehicle can expose you to chemicals including engine exhaust, carbon monoxide, phthalates, and lead, which are known to the State of California to cause cancer and birth defects or other reproductive harm. To minimize exposure, avoid breathing exhaust, do not idle the engine except as necessary, service your vehicle in a well-ventilated area and wear gloves or wash your hands frequently when servicing your vehicle. For more information go to http://www.P65Warnings.ca.gov/passenger-vehicle.
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