Is 700 a Good Credit Score to Buy a Car?
Your credit score is an important factor when locking down financing. 700 is a good credit score to buy a car because it proves you are a responsible borrower with a credit history in the prime range. Even if your score is under 700 there are still ways to obtain affordable financing, especially at Green Light Auto Credit! Let’s evaluate how good a 700 credit score is and what you should know before buying your next vehicle.
How Good is a 700 Credit Score?
Credit scores can be anywhere from 300-850, with five qualifying bands ranging from “poor” to “excellent”. The higher your score, the more likely you are to secure better rates and loan terms, but you don’t have to have perfect credit to buy a car. In fact, most people don’t!
Lenders will consider your credit score when determining rates. According to Experian, here is a snapshot of what type of loan and rate you can expect based on your history:
- 781-850: Superprime loan at 3.65% (new) or 4.29% (used)
- 661-780: Prime loan at 4.68% (new) or 6.04% (used)
- 601-660: Nonprime loan at 7.65% (new) or 11.26% (used)
- 501-600: Subprime loan at 11.92% (new) or 17.74% (used)
- 300-500: Deep subprime loan at 14.39% (new) or 20.45% (used)
As you can see, a 700 credit score puts you in the “good” or “prime” category for financing, making 700 a good credit score to buy a car. While it’s always a good idea to get your credit score in its best possible shape before buying a car, if you’re already around the 700 range you will be good to go.
Can I Buy a Car With a 700 Credit Score?
In 2020, Experian reported that the average credit score to secure a used-car loan was 657, with 721 being the average for new-car loans. You can buy a car with a 700 credit score, but even if you are under 700, there are still ways to get financing.
Those with bad credit will need to supply additional proof of their financial history, including pay stubs, proof of residence, or other supporting documents that illustrate your ability to pay bills on time. You may also consider putting down a larger down payment or getting a cosigner or guarantor on your loan to improve your rate.
Buy a Car With a 700 Credit Score at Green Light Auto Credit!
At Green Light Auto Credit, our finance experts want to help you get into a good car that fits your needs and budget, and we’ll work with you to find financing that works. Contact us to get started today.
