When it comes time to search for your next car, you'll find there are a lot of moving parts, and you're sure to have many questions. One of the biggest ones on your mind may be, "What is a good credit score for auto loans?"

Well, wonder no more-the team at Thompson Chrysler Jeep Dodge Ram of Harford County is here to let you know a FICO® credit score of 660 or higher will help you secure a great auto loan rate. If drivers from the areas around Edgewood, Bel Air, and Aberdeen, MD, have a different score, there's no need to worry. Allow us to quickly run down the basics of credit scores for you.

What's a Credit Score?

Before we start with how your FICO® credit score is used to assess your possible auto loan, let's first explain what a FICO® credit score is. This scoring model uses information about how much debt you currently have, how regular you are about making payments toward those debts, and if you have been delinquent in making payments or defaulted on any debts in the past. With this data, the model generates numbers on a scale from 300 to 850, and paints a picture of how likely you are to repay any debts you may take on in the future on top of your current debts. Late and on-time payments will cause this score to move down or up.

FICO® credit scores are then ranked on the following scale:

  • Exceptional: 800-850
  • Very Good: 740-799
  • Good: 670-739
  • Fair: 580-669
  • Poor: 300-579

FICO® credit scores of "Good" to "Exceptional" will put you in the best spot for securing great rates on any loans. However, those in the "Fair" range may also be able to finance with ease.

What Credit Score Do You Need for an Auto Loan?

As mentioned before, a FICO® credit score of 660 or higher is desirable for an auto loan. However, some auto lenders may use a different scoring model, such as the following:

  • FICO® 8 and 9: These scores are rankings in the latest scoring model of the traditional FICO® credit score. This scoring model looks at your entire credit history to provide a general look at your overall creditworthiness. You can check this score online or on your monthly credit card statement.
  • FICO® Auto Score: This scoring model only takes data specific to past auto loans to provide a score on how likely you are to repay your next auto loan. If you have a good history of paying for vehicles in the past but have a student or medical debt hindering your traditional FICO® credit score, this may be a better measurement for you.
  • Vantage Score® 3.0 or 4.0: This scoring model was created by Experian, Equifax, and TransUnion. It uses the same information as FICO® 8 and 9, but it may return a slightly different score.

Unfortunately, you have no control over which score lenders are using. Checking your traditional FICO® credit score will better prepare you for financing, or you can get pre-approval from different lenders to compare rates.

How to Improve Your Credit Score

Want to improve your credit score? Follow these helpful tips:

1.Dispute any errors on your credit report.

2.Build a monthly budget and start to chip away at debt.

3.Pay your bills on time.

4.Limit your requests for new credit.

5.Keep old credit cards open.

6.Minimize your credit utilization.

7.Consolidate any debts.

8.Monitor your progress through credit tracking.

It's best to start improving your score before you apply for an auto loan. This affords you plenty of time to raise your score and receive a great rate.

Speak to an Auto Loan Expert Today!

Have further questions about auto loans? Reach out to one of the financing experts at Thompson Chrysler Jeep Dodge Ram of Harford County. We're happy to assist drivers throughout the Edgewood, Bel Air, and Aberdeen, Maryland, areas, in any way we can.

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Contact

Thompson Chrysler Jeep Dodge RAM of Harford County

1102 Business Center Way
Directions Edgewood, MD 21040-1505

  • Sales: (410)-671-5124
  • Service: (410) 216-4686
  • Parts: (410) 698-4243

Hours

  • Monday 09:00AM - 08:00PM
  • Tuesday 09:00AM - 08:00PM
  • Wednesday 09:00AM - 08:00PM
  • Thursday 09:00AM - 08:00PM
  • Friday 09:00AM - 08:00PM
  • Saturday 09:00AM - 05:00PM
  • Sunday Closed