Credit Score Ranges

Are you looking for a way to pay for one of the high-quality vehicles you've found in our Jersey City Showroom? Here at New Jersey State Auto, we pride ourselves in helping our customers access auto financing deals tailored to meet their personal needs. We get many questions from new applicants about how financing works, so we decided to answer on this page some of the most common topics that interest potential car buyers. If you can’t find the answer to your question here, give us a call at (201) 200-1100.

What's the Average Credit Score for Buying a Car?

The typical credit score you'll need to secure an auto loan varies depending on the requirements of the lender. However, as a general rule, traditional auto financing offers are available to people with a credit score of 600 or above. This figure is based on the FICO credit score scale, which ranges from 300 to 850, with 300 being a low credit score and 850 the highest. Some lenders use different credit score scales, but the numbers don't usually vary too much.

Here at New Jersey State Auto, we seek to work with all customers who need an auto loan. We don't stick to the traditional lower limit of a 600 credit score for loan eligibility. Instead, we work with each customer to find a loan that meets their personal situation. We also consider other factors alongside your credit score as part of your application, including your income and employment history. We can also consider the type of vehicle you want to purchase and whether you can make a down payment toward the total cost.

Is There a Minimum Credit Score for Loan Approval?

There's no minimum credit score required to apply for an auto loan. However, you should be aware that the lower your credit score is, the harder it'll be to find a lender. Loans offered to people with low scores generally have higher interest rates than those given to people with high scores. Some financing deals, including those offered directly by auto manufacturers, may be restricted to people with the best credit scores.

Luckily, you can take several steps to improve your credit score if it's currently low. First, try to make several regular payments on any existing debt you have, such as credit cards or other loans. If credit rating agencies see that you're making payments often, they'll be more likely to increase your score. If you're struggling with your credit score because you haven't been able to get credit anywhere yet, you could try finding a cosigner for your loan. Cosigners have higher credit scores and commit to covering your debt if you prove unable to pay.

FICO Credit Score Overview

If you want a clearer idea of your credit score, you can request a credit report for free from the main rating agencies once a year. This report will contain your score and list the types of credit you have.

If you're using the FICO credit score for your financing application, you'll want to aim for a score of 600 or higher if possible. The best scores range from 780 to 850. People with scores in this area are eligible for super-prime loans, which often include zero-interest offers. These loans may also be offered without a down payment.

Prime loans are offered to those with a score between 660 and 780. A credit score from 601 to 660 is considered fair and will qualify you for a non-prime loan. Credit scores ranging from 501 to 600 fall into the subprime category. Borrowers may have a harder time finding a lender with a score in this area.

Anyone with a credit score below 500 is said to be in the deep subprime range, where loans typically have the highest interest rates. If your credit score is at the lower end of this scale, there's no need to worry because you could still get a good loan deal.

Tips for Securing Auto Financing

Your credit score is an important part of your auto loan application, but it's not the only deciding factor. Lenders will also take a look at your earnings and your debt-to-income ratio. This ratio is the percentage of your total income made up by your debt. Even if your credit rating is a little lower than average, you may qualify for a good interest rate if your debt-to-income ratio is low and you have a solid regular income.

You should also consider whether you can make a significant down payment toward the cost of your car. For example, you may have a vehicle that you're trying to sell. You could take advantage of our trade-in program, which allows you to get a no-obligation quote in just a few minutes. If you go ahead with the sale, you could have thousands of dollars to put toward your purchase and reduce the amount you need to borrow.

Bad Credit Loans at New Jersey State Auto

Here at New Jersey State Auto, we aim to make competitive auto financing available to all of our customers. We work especially hard to help those of you who have struggled to secure a loan because of bad credit. Thanks to our network of local and national lenders, as well as in-house financing options, we're confident that we'll be able to put together a loan package that suits your needs.

We also have several tools to help you apply as easily as possible. Our online application form allows you to complete the process in the comfort of your own home and get preapproved by one of our finance experts. If you're unsure how much you can afford to borrow, you can use our payment calculator to figure out what your monthly payments might be. Just enter the amount you're thinking of borrowing and the repayment period you'd like, and our calculator will give you an estimate.

Do you still have questions about our auto financing offers? Or perhaps you'd like to talk to one of our loan experts about your situation? We'd be delighted to take your call or chat with you in person at our Jersey City dealership. Feel free to contact us today to make an appointment or get your application process started. We're looking forward to helping you finance your next vehicle purchase.

High credit scores indicate a better chance of you paying off the car loan at the end of the term (which is the reason the bank is in the auto lending business). Lower scores, in turn, indicate greater risk.

But, we can help get you approved for auto financing with our experience and strong banking relationships with the top auto lenders in the NJ tri-state area.

See if you pre-qualify for auto financing: pre qualify without hurting credit

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