Minimum Credit Score To Get The Best Rate On Your Next Auto Loan

Minimum Credit Score To Get The Best Rate On Your Next Auto Loan

Word from two executives from businesses that deal with interest rates, credit cards, and credit scores state that a score of 750-760 is all that is needed to qualify for the best rates (they also note that other factors are weighted in the credit granting process).

Jlomb436 | 10/10/2018

This is going to vary a lot, and even more so on car loans. These generally have quite a bit of flexibility due to the collateral. The employer I work for considers a FICO of 740+ (Fair Isaac 2) to be premium tier. I do recall seeing others advertise 700+ as premium as well.

Also, I skimmed the article, but I certainly wouldn't want to be at 761, miss a payment, and now have a 725 score due to my record being hit. Good credit is certainly the easiest way to save yourself some money :)

Ref: I'm a banker.

staze | 10/10/2018

Just recently looked into rates. Was told the old threshold for great credit was 730+ but is now 800+. I'm at 760 due to credit pulls. Yes, I bought a home 18 months ago. Yes, I cosigned for my wife on her Tesla. Yes I buy properties as part of my business. You would think my stellar payment history and all those investments would make my score higher. Alas, another part of the finance industry where common sense doesn't prevail.

CST | 10/10/2018

USAA are being bastards require 800, and they pick the rating system. Got denied with an 820 by thieir credit score checking plan, they claim I'm 790 on another version of the scale.

Coastal Cruiser. | 10/10/2018

Jlomb436, given your trade, nice to hear your point of view.

staze, you likely know too that credit utilization is a fairly large weighting on the score. Seems like you have a pretty decent score regardless.

CST, can't believe a denial with an 820. Gosh.

The whole scoring game is a moving target.

staze | 11/10/2018

Agree Coastal Cruiser. I pulled a 2.49% with FPCU - same back we financed my wife's M3. They still uphold the 730+ as excellent AND they use FICO which appears to be a more lenient scoring system.

hmgolds | 11/10/2018

My credit union required 790 for the best rate. But it varies a bit depending on what credit reporting they use. So 790 on one might equal 800 on another.

Rates have gone up. The 2.49% we got a month ago is now 2.74% First year on both is .5% less.

CST | 11/10/2018

Denial for the best rate.. Sorry.

Jlomb436 | 11/10/2018

Also, I should have mentioned this in my other post, but demand is also a key factor for some of these banks when it comes to scoring. For instance, if we (the bank) have a surplus of deposits, we're going to be more lenient with our underwriter criteria to lend out the money we've taken in. Deposits leave, you see the opposite. Rising rate market is certainly coming, should be an interesting year or 2.

Jlomb436 | 11/10/2018

In short, shop around. And I wouldn't take it personally, for the reasons mentioned above :)

michaelebowers | 13/04/2019

Anyone looked at rates lately? I'm seeing about 2.99% is the lowest for most credit unions. And that is their "as low as" rate. Anyone who lives in Hawaii or Howard County, Maryland, has an elite rate of 1.99%. The spreadsheet that is published with rates only has a few that are low, and didn't help me much.