What Credit Score is Needed to Finance a Car?

Whether you’re just starting to establish your credit history or you’re working to improve your score, you may be curious about your ability to finance a car. So, what credit score is needed to finance a car? While a prime or superprime credit score will certainly help you along the way, many dealers offer bad credit car finance options. Here at Serra Traverse City, we take great pride in providing competitive rates and flexible options at all of our stores. You may be surprised to find out that responsibly taking on a car loan may even help you to improve your overall credit score! Continue reading below with our expert financiers to learn more about getting the right credit score to finance a car, bad credit score car financing, and more!

Average Credit Score to Finance a Car

As recently as 2020, the average credit score for a driver buying a new car was 721. Drivers who were looking for a pre-owned vehicle had an average credit score of 657. Knowing the average credit score to finance a car can help you set your expectations for the type of vehicle you can afford. While you’ll likely be able to upgrade your Bellaire commute with a bad credit car finance deal regardless, here’s a breakdown of how credit scores are categorized:

• 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

So, what credit score is needed to finance a car? As we touched on above, that will depend on the type of car you’re trying to buy and a variety of other factors. Even if you have a deep subprime credit score, you can still obtain a bad credit car finance offer. However, you’ll want to keep the following in mind as you search for a fair loan:

• Focus on Positives: If you can demonstrate the positive habits in your credit history, you’ll increase your odds of securing a loan. For instance, if you have a strong payment history but your score has been dropped by business debt, you’re still in good shape for a car loan.
• Bring Proof: Here at Serra Traverse City, we understand that you may be working through a financial rough patch. That doesn’t mean that you shouldn’t have a reliable vehicle. Bring your pay stubs, proof of address, cell phone bills, auto insurance documents, and proof of employment. Documentation to prove you’re working to improve your score will help you secure a loan.
• Show Collateral: If you’re a homeowner or you can put down a sizable down payment (at least 25%) your odds of scoring a solid loan and competitive interest rate will skyrocket. 

Explore Your Options With Serra Traverse City

If you’re committed to improving your commute from Kalkaska to Lake City, but you’re not sure about the financial side of the equation, Serra Traverse City has your back! Our expert finance team has experience working with drivers of all financial backgrounds, and we can serve you next. Feel free to get in touch with our team for support, or apply for financing online to get your upgrade started.