Used Car Interest Rates By Credit Score

Understanding Credit Scores 

Your credit score is dependent upon a few key factors and is used to determine your trustworthiness in relation to financial payments. The more consistently you've made payments in the past, the more favorable interest rates you'll receive.

Your credit score range will fall somewhere between 300 and 850. While 300 is the low point, 850 represents the highest credit score you can obtain. Typically, if your credit falls somewhere in the 600 or better vicinity, you'll be able to land an interest rate you're happy about.

Credit Scores & Interest Rates

While not the only measure used to judge potential lenders, your credit score will represent the easiest way for you to receive an interest rate that fits favorably into your budget.

The higher your score may be, the lowest the interest rate as lenders will be taking on less risk. The inverse of this is also true. If lenders believe they will be inheriting large risk by loaning out money, they'll ask for a larger interest rate to compensate.

Boosting Your Credit Score

If you have your eyes on a particular model and want to position your credit score comfortably above 600, there are a few steps you can take to boost your current number.

First, making payments on time and in full is the most effective way to raise your credit score. Doing this consistently and over a lengthy period of time will shine a positive light on your financial standing.

Also, it's good to consolidate various payments onto one card. Along with being more organized, this system makes it easier to track your payments as well as pay them off in a timely fashion. You'll want to avoid paying off one card with another card, too. This process just displaces payments but doesn't make them go away, and lenders will take notice of this practice.

Lastly, avoid large cash advances, which can often be associated with financial instability. If you have specific questions about your credit score and how to get it moving in the right direction, you can always sit down and speak with one of our financial consultants!