What interest rate can I get with a 720 credit score?
According to MyFICO, as of November 2022, the average APR on a 60-month new auto loan for someone with a FICO Score of 720 or higher is 5.64%. With a score in the 690-719 range, it's 6.83%. And for a borrower with a score in the 660-689 tier, the average APR is 9.19%.
According to MyFICO, as of November 2022, the average APR on a 60-month new auto loan for someone with a FICO Score of 720 or higher is 5.64%. With a score in the 690-719 range, it's 6.83%. And for a borrower with a score in the 660-689 tier, the average APR is 9.19%.
You can borrow $50,000 - $100,000+ with a 720 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
| Credit category | Credit score range | Average credit line |
|---|---|---|
| Super prime | 720-850 | About $10,000 |
| Prime | 660-719 | Less than $6,000 |
| Near prime | 620-659 | About $3,000 |
| Subprime | 580-619 | About $2,000 |
| Average Auto Loan Interest Rate by Credit Score | ||
|---|---|---|
| Average New Car Rate | Average Used Car Rate | |
| Nonprime (620-659) | 8.86% | 13.28% |
| Prime (660-719) | 6.40% | 8.75% |
| Super prime (720 or above) | 5.18% | 6.79% |
Can I get an auto loan with an 640 credit score? The short answer is yes, but you're likely to get a significantly higher-than-average interest rate.
| Lender | Loan Amounts | APRs |
|---|---|---|
| SoFi | $5,000 - $100,000 | 8.99% - 29.99% Fixed APR with all discounts |
| Wells Fargo | $3,000 - $100,000 | 7.49% - 23.24% |
| USAA | $1,000 - $100,000 | 10.34% - 18.51% |
| Discover | $2,500 - $40,000 | 7.49% - 24.99% |
There isn't one specific score that's required to buy a car because lenders have different standards. However, the vast majority of borrowers have scores of 661 or higher.
Requirements for a $20,000 Personal Loan
This means they'll want to see your credit score, income level and DTI ratio. Requirements vary by lender, but most lenders require borrowers to have a credit score in the good to excellent range — meaning a score of at least 670.
In general, lenders extend $30,000 loans to borrowers with good to excellent credit, which is typically 670 and higher. But there may be lenders who lend to borrowers with bad credit. If you're having difficulty qualifying, you may consider getting a cosigner or co-borrower to help you get approved for the loan.
Can I buy a car with a 720 credit score?
The credit score needed for the best car loan depends on the lender, but in general, a credit score of 720 or higher will allow you to qualify for a lender's best rates.
To get approved for high-limit credit cards, you'll most likely need to have good or excellent credit and a steady income to support a higher credit limit. Picking the right card is important, too. You may be able to find the minimum starting credit limits listed in some cards' terms and conditions.
- Chase Sapphire Preferred® Card.
- Chase Sapphire Reserve®
- The Platinum Card® from American Express.
- Chase Freedom Unlimited®
- Capital One QuicksilverOne Cash Rewards Credit Card (see rates and fees)
- Platinum Secured Mastercard® from First Tech Federal Credit Union.
The score range for the Auto Score is 250-900 (instead of the traditional 300-850). FICO promotes that Auto Score will help dealerships and lending institutions in five distinct ways: Increase regulatory compliance.
Credit score: You might need a credit score of at least 740 to be considered for a 0% APR loan. The minimum credit score depends on the dealership and the car you're interested in purchasing.
People with excellent credit qualified for rates around 5.64 percent, while people with bad credit had an average new car rate of 14.78 percent. Rates for used cars were higher — 11.93 percent across credit scores. And the average rate for bad credit was a sky-high 21.55 percent.
In general, you'll need a FICO credit score of at least 600 to qualify for a traditional auto loan, but the minimum credit score required with vary from lender to lender. As interest rates increase due to inflation, securing a subprime auto loan may be more difficult — but not impossible.
It's essential to be knowledgeable about how your auto loan process will be different than someone with a higher score. You might not have the same options, but you can still get an auto loan with a 600 credit score.
You'll usually need a credit score of at least 640 for the zero-down USDA loan program. VA loans with no money down usually require a minimum credit score of 580 to 620. Low-down-payment mortgages, including conforming loans and FHA loans, also require FICO scores of 580 to 620.
| Annual Salary | $70,000 | $70,000 |
|---|---|---|
| Down Payment | $30,000 | $30,000 |
| Current Monthly Debts | $150 | $500 |
| Mortgage Rate | 7.0% | 7.0% |
| Home Buying Budget | $275,502 | $270,492 |
How much house can I afford if I make $70,000 a year?
One rule of thumb is that the cost of your home should not exceed three times your income. On a salary of $70k, that would be $210,000. This is only one way to estimate your budget, however, and it assumes that you don't have a lot of other debts.
If you earn $90,000 per year, your monthly income comes to $7,500. So your monthly housing payments should be no more than 28 percent of that, or $2,100.
Calculator Results
A $30,000 auto loan balance with an average interest rate of 5.0% paid over a 6 year term will have a monthly payment of $483. In total, the loan will cost $34,787 with $4,787 in interest.
How fast will a car loan raise my credit score? There's no set time frame for how long it takes a car loan to improve your credit score. After buying a car, you can expect to see your score improve after making monthly payments on time and paying down your loan balance.
Average Credit Scores FAQs
Consider yourself in “good” shape if your credit score is above the average for people in your age group. Given that the average credit score for people aged 18 to 25 is 679, a score between 679 and 687 (the average for people aged 26 to 41) could be considered “good”.
