Your credit actually tells a lot about your financial future and when your buying a car it helps the auto lenders know the likelihood of you being able to pay back the auto loan.
Breaking down your credit for a used car
Here is a break down of how auto lenders look at your credit score when you want to buy a car.
- 850-740 is an excellent credit score – 3.2% or below interest rate
- 739-680 is about average for a credit score and that will get you about a 4.5% interest rate
- 680 and below is what auto lenders consider sub-prime – 6.5-12% interest rate
When you’re shopping around for auto loan rates the sweet spot you want to be in is about 740 for a good interest rate. For the people that don’t have that luxury a credit score in the 600’s would work too.
But you will want to gear more towards the 700’s for a new car over a used car in Arlington Virginia.
Check your credit for a used car first
Checking your credit score is one of the best things you can do when buying a car because it will give you a bird’s eye view of the kind of car or suv auto lenders will work with you on.
There are two ways to rebuild your credit if you are struggling to get approved for anything.
- Is to open up a credit card if you can for small purchases like gas or groceries, but pay it off in full once you get the statement
- This is usually the fast and easiest way to help your credit is to make schedule payments on the debt you already have. Like $25-$30 a week on current credit card debt.
Find the right special finance car dealer in Arlington VA
If you are really trying to narrow down the used cars you want to compare work with the auto loan experts at Autoloanseastcoast.com we have a large used car dealer network for special financing in Arlington Virginia.
Most of our car dealers have $99 down used car offers in Arlington or no money down options available on used cars in Arlington VA. These steps will help in all car purchases across Virginia.