What Credit Score is Needed to Finance a Car?

Do you have a competitive credit score to finance a car? If you’re considering getting a new or pre-owned vehicle near Clearfield, you might be wondering if you’re in a good spot. The necessary credit score to finance a car will depend on whether you want a new or pre-owned model. Plus, if you have a less-than-ideal credit score, most dealers offer bad credit car finance options. Car shoppers can use a bad credit car finance plan to get a vehicle and build up their credit when they’re in a position to make the car payments on time. Find out more with Spitzer Subaru’s finance team below.

Average Credit Score to Finance a Car

In 2023, the average credit score of drivers who have secured auto loans was 743 for a new vehicle and 684 for a used car. However, regardless of your credit score, it’s likely you will be able to secure car financing, including bad credit car finance options. While you might still qualify for a loan, you should know that the lower your credit score, the higher the interest you’ll pay in Philipsburg. You should also be aware of the different health categories for credit scores when trying to finance a vehicle. Here’s the breakdown:

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

How to Get Car Financing With Bad Credit

If you have a less-than-ideal credit score, you might be nervous about financing a car. It is possible for Clarion drivers with a deep subprime credit score to secure bad credit car finance loans. There are things you can do when you’re trying to secure financing with bad credit. For example, you should:

• Focus on Positives: If you’ve made positive financial actions, be sure to show that to lenders as it will help increase your odds of securing a loan. For example, if you’ve never missed a credit payment, but your credit score has been marred by business debt, you’re in a better position.
• Bring Proof: A concrete way of showing those positive financial actions is by bringing proof. You can bring any document that shows you’re responsible and you’re able to pay off your car loan despite your credit score. Examples of proof include pay stubs, proof of address, cell phone bills, and auto insurance documents.
• Show Collateral: If you own a home or can put down a substantial down payment (at least 25%), you’re far more likely to qualify for auto financing and get a good interest rate to boot.

Discuss Your Options With Spitzer Subaru

We’re here to help you secure auto financing in the DuBois area regardless of what your credit score is. Feel free to learn more about how car financing works or get in touch with us with any questions!