Average Car Loan Interest Rates by Credit Score - NerdWallet (2024)

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Average Car Loan Interest Rates by Credit Score - NerdWallet? ›

This allows them to look at your history from the past seven years and see whether you've typically made payments on time. For a $30,000 loan, you'll typically need a credit score above 600 just to qualify or above 700 to get a competitive rate.

This allows them to look at your history from the past seven years and see whether you've typically made payments on time. For a $30,000 loan, you'll typically need a credit score above 600 just to qualify or above 700 to get a competitive rate.

The lowest rate for a car loan is offered by Autopay at a starting APR of 5.69%, but your rates may vary. AutoPay have the best auto refinance loans with low rates starting at 4.67%. Auto Credit Express and iLending offer low APRs for car loans with bad credit with their network of lenders.

According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.

Car loan options with a 750 credit score

Even though your credit score is only one factor in your car loan interest rate (the other two are your income and your debt-to-income ratio), you can expect an average rate between 3% and 6% for a new car and between 5% and 9% for a used car.

I... Top Banks like Canara Bank, HDFC Bank, ICICI Bank, Punjab National Bank, and State Bank of India are providing the cheapest car loans. Canara Bank interest rates range from 8.80 percent to 11.95 percent. HDFC Bank car loans start from 8.75 percent.

For instance, using our loan calculator, if you buy a $20,000 vehicle at 5% APR for 60 months the monthly payment would be $377.42 and you would pay $2,645.48 in interest.

This is known as the “buy rate.” The dealer will choose the offer to present to you, but they may have an incentive to charge you more than the proposed buy rate. This means that the interest rate you receive through a dealership is generally higher, but you can negotiate this rate, along with other loan terms.

Strong credit borrowers may access more competitive rates

McBride shares that while the high-rate environment will persist, rates will ease for most borrowers in 2024. Increased competition between lenders may help drivers secure a good rate.

Key Takeaways. Your credit score is a major factor in whether you'll be approved for a car loan. Some lenders use specialized credit scores, such as a FICO Auto Score. In general, you'll need at least prime credit, meaning a credit score of 661 or up, to get a loan at a good interest rate.

What is the average interest rate on a car loan with an 800 credit score? ›

To understand what car loan interest rate you might qualify for based on your credit score, check out the average rates below for different credit tiers: Excellent (750 - 850): 2.96 percent for new, 3.68 percent for used. Good (700 - 749): 4.03 percent for new, 5.53 percent for used.

To get your car loan approved, your CIBIL score should be at least 750. To obtain a car loan, you should qualify certain eligibility criteria like your minimum age limit should be at least 21 years, having a regular source of income, as well as having a strong credit history.

A FICO^® Score of 670 provides access to a broad array of loans and credit card products, but increasing your score can increase your odds of approval for an even greater number, at more affordable lending terms.

You can borrow $50,000 - $100,000+ with a 730 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.

Rates and terms are subject to change without notice. Example: A six year fixed-rate loan for a $25,000 new car, with 20% down, requires a $20,000 loan. Based on a simple interest rate of 3.4% and a loan fee of $200, this loan would have 72 monthly payments of $310.54 each and an annual percentage rate (APR) of 3.74%.