What credit score is needed to buy a car?

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In Canada’s car-buying scene, your credit score is key. A score of 600-650 is the minimum for decent bank or credit union rates. Hit 700 or more and you’re in optimal territory for the best deals. Scores between 630-700 may see slightly higher rates. Under 600? Expect high interest and consider subprime options, collateral, or a cosigner. Questions? Reach out via phone, text, or live chat.

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Credit Score Car Buying Question

What credit score is needed to buy a car? What’s the minimum credit score I’d need to buy a car without facing high-interest rates?

From: Anonymous Question
Location: Thunder Bay, Ontario (ON)
Category: credit rebuilding

Credit Score Car Buying Answer

Canada’s car-buying scene gives credit scores a starring role. If you’re dealing with banks or credit unions, you’re looking at needing a minimum score of around 600 to 650 for decent interest rates. Score 700 or higher and you’re golden—think best rates and terms. In the 630 to 700 range? You’re likely still in the game but might see those interest rates climb a tad. For scores under 600, brace yourself for a steep hike in interest rates. You’ll likely need to turn to subprime lenders or consider putting something up as collateral or grabbing a cosigner to help you out.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

If you’re considering financing a vehicle, keep in mind that a credit score of 620 or higher is often necessary for securing favorable financing terms on a car loan. For the best rates, a score of 700 or more is typically preferred. To better understand how your financial decisions can impact your credit, you might want to explore options like credit rebuilding. For definitive guidance, consult financial institutions or resources focused on automotive finance.

From: OSB Helper

Related Questions to What Credit Score Is Needed To Buy A Car

Here are the top 5 most frequently asked questions related to the credit score needed to buy a car, based on current trends and concerns:

1. What is the minimum credit score needed for a car loan?

• A minimum credit score of 600 or 650 is typically required by traditional lenders, but some online lenders may accept scores as low as 300[1][4].

2. How does my credit score affect my car loan interest rates?

• Your credit score significantly impacts the interest rates you’ll pay, with higher scores (above 660) generally resulting in lower interest rates[1][4].

3. Can I get a car loan with bad credit?

• Yes, you can qualify for a car loan with bad credit, but you may need to secure the loan with an asset or get a cosigner, and you’ll likely face higher interest rates[1][4].

4. What are the other requirements besides credit score for a car loan?

• Besides credit score, lenders often require a minimum income (e.g., $1,500 to $2,000 per month), stable employment (3+ months), and in some cases, no recent bankruptcies[1].

5. How can I improve my chances of getting approved for a car loan with a low credit score?

• You can improve your chances by securing the loan with an asset, getting a cosigner, or applying for a bad credit car loan through specialized lenders[1][4].

If you have a question about debt see our debt questions or ask your own debt related question.

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