You need a loan to buy a car, but with fair credit — generally a credit score between 630 and 689 — you worry you won’t qualify for a good interest rate.
However, by following these steps, you’ll not only get the best rate available to you, but also be in a stronger position when you go car shopping.
Is 635 a good credit score to buy a car?
The average credit score to buy a new car is 713; it’s 656 for a used-car loan. But nearly 20% of car loans go to borrowers with credit scores below 600, according to Experian. Almost 4% go to those with scores below 500.
What’s considered a good credit score to buy a car?
Average Car Loan Rates by Credit Score
|Credit Score Range||New Car Loan||Used Car Loan|
|Super Prime: 781 to 850||2.6 percent||3.4 percent|
|Prime: 661 to 780||3.59 percent||5.12 percent|
|Nonprime: 601 to 660||6.39 percent||9.47 percent|
|Subprime: 501 to 600||10.65 percent||15.72 percent|
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Is a 630 a good credit score?
A credit score of 630 isn’t “good.” Rather, a 630 credit score is actually considered “bad,” according to the standard 300 to 850 credit-score scale. Such a score will make it difficult to get approved for a decent loan or line of credit and could even prevent you from renting an apartment or landing certain jobs.
Can you buy a house with a credit score of 630?
FHA Loan with 630 Credit Score. FHA loans only require that you have a 580 credit score, so with a 630 FICO, you can definitely meet the credit score requirements. With a 630 credit score, you should also be offered a better interest rate than with a 580-619 FICO score.
Photo in the article by “Solar System Exploration Research Virtual Institute – NASA”