Average car loan interest rates by credit score Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make better financial decisions by providing you with interactive tools and financial calculators as well as publishing original and objective content. This allows you to conduct your own research and compare information at no cost to help you make financial decisions with confidence. Bankrate has partnerships with issuers, including but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The offers that appear on this website are provided by companies that compensate us. This compensation could affect how and when products are featured on the site, such as, for example, the order in which they be listed within the categories of listing in the event that they are not permitted by law for our mortgage, home equity and other products for home loans. This compensation, however, does have no impact on the content we publish or the reviews that you see on this site. We do not cover the universe of companies or financial offerings that might be open to you. skynesher/Getty Images

3 minutes read. published December 02, 2022.

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Written by Bankrate Written by The article was created by using automated technology. It was then thoroughly checked and edited by an editor from our editorial team. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since late 2021. They are committed to helping readers to manage their finances. They provide clear, well-researched facts that break down complicated topics into digestible pieces. Written by Mark Kantrowitz Reviewed by Nationally recognized expert on student financial aid Mark Kantrowitz is an expert on student financial aid as well as the FAFSA and 529 plans, scholarships education tax benefits and student loans. The Bankrate promise

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who ensure everything we publish is objective, accurate and trustworthy. The loans reporters and editors concentrate on the areas that consumers are concerned about most — the various kinds of lending options as well as the best rates, the most reliable lenders, ways to pay off debt and more — so you’re able to be confident about investing your money. Integrity of the editing

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If you have questions about money. Bankrate has the answers. Our experts have been helping you master your money for over four decades. We are constantly striving to provide consumers with the expert advice and tools needed to make it through life’s financial journey. Bankrate adheres to strict standards standard of conduct, so you can rest assured that our information is trustworthy and precise. Our award-winning editors and journalists create honest and accurate content that will help you make the right financial choices. The content we create by our editorial team is objective, factual and uninfluenced by our advertisers. We’re open about the ways we’re capable of bringing high-quality content, competitive rates and useful tools for you by explaining how we earn money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for the placement of sponsored products and, services, or through you clicking certain links posted on our site. Therefore, this compensation may affect the way, location and in what order products are listed in the event that they are not permitted by law for our mortgage, home equity and other home lending products. Other elements, like our own website rules and whether the product is available in your region or within your personal credit score could also affect how and where products appear on this site. We strive to provide an array of offers, Bankrate does not include details about every financial or credit product or service. Car loan interest rates are determined by the credit score of your. The less your score is lower, the greater the rate of interest you’ll pay. But, you don’t require a perfect score to get a good rate. To get the best deal best rate, you should look around and try to raise your credit rating if it isn’t in the best state. Average auto loan interest rates based on credit score Car loan rate is tied in direct relation to the credit scores of your. However it’s possible to still secure an acceptable rate even without high-end credit. To gain a better understanding of the magnitude of a difference a credit score can make, as well as an idea of the rate at which your interest might be, you should look at the average rates by credit score. Credit score

Average interest rates for new automobile loans

Average interest rates for used car loans

781-850

3.84%

3.69%

661 to 780

4.9%

5.47%

601 to 601 to

7.25%

9.81%

From 501 to 600

10.11%

15.86%

300 to 500

12.93%

19.81 percent The source: factors that impact the auto loan interest rates While your credit score plays significant roles in determining how much interest you pay, there are other factors to consider alongside it. Credit score Two of the most popular scores used to evaluate auto loans comprise FICO and VantageScore. Both are used to determine various aspects of financial well-being, such as payment history, credit utilization, credit mix and the average time to maturity of accounts. There are some distinctions in the number of metrics used and how they’re weighted. Both scores fall between 300 and the 850 mark. The lenders you choose to apply different credit underwriting requirements. In addition to your credit score, your income and debt-to income ratio are going to be considered. Some may take into account your professional or educational background or weigh it more heavily than other lenders. Beyond the qualification and underwriting guidelines, some lenders offer lower rates as compared to other lenders. It is important to know that the most affordable APRs — those typically listed on lender sites — are available to those who have excellent credit. Amount borrowed Both the price of the vehicle as well as your down payment are factors in the amount of money you’re borrowing. If you’re unable to put more than the minimum amount down, the lender could view this as a riskier proposition and increase the interest rate to compensate. Length of loan The longer your loan duration, the greater the interest you’ll have to pay. However, in addition to the additional interest accrued, lenders may charge higher interest rates when you take out longer loans. How can you get a lower auto loan price There’s a few methods to increase your odds of getting a competitive interest rate whatever your credit history. Shop around Shop around with various lenders, such as banks and auto loan the interest rate. Some lenders don’t report to credit bureaus So if you’re looking to build your credit make sure that you select a lender that has a credit bureau. Apply for preapproval It is an excellent idea to talk to at three or more lenders before settling on one. It is required to submit personal and work information, but not all rate quotes will require a credit test. Because some do require a credit check however, you should limit your application window to about two weeks. Make a larger down payment A down payment reduces the amount you must take out. By decreasing the amount borrowed it means that the lender takes on lower risk. Less risk translates to less interest. Find a co-signer if you have less credit Consider asking a family member or trusted acquaintance with an outstanding credit rating . Your co-signer will assume the obligation if you are unable to pay the loan back, meaning that there’s less risk to the lender. Keep in mind that this can put strain on a relationship when you are unable to pay. Where to find the best car loans There are a variety of ways to find the best auto loan. Banks. If you already have a connection with a bank, and you have a high credit score, the bank might offer one of the most competitive interest rates. But read the entire agreement before signing itcertain banks have an agreement that permits the bank to withdraw funds from your savings or checking account. Credit unions. Similar to banks, if you’re a member of a credit union, they may have a competitive interest rate. And if you have less-than-perfect credit, a credit union might be willing to look past that and still extend the rate at a fair amount. Online lenders. There are many online lenders who offer auto loans that you are able to prequalify for. Similar to the majority of direct lenders, you’ll likely get a better rate that you could get with an auto dealer. Car dealers. This is among the best ways that you could get . Dealers can add markups on rates of interest that means you’ll be in a position to pay more than you . Make sure to speak with several lenders before going to a dealer to secure the best price possible. The bottom line: Low auto loan rates are generally reserved for borrowers with near-perfect credit scores. And while it’s good background to understand the typical rates, you’re never guaranteed to get the figure that is in line with the bracket you’re in. Whether you know your credit score or not, you can make an online application to lenders and off to determine what kind rate you’re qualified for. Learn more

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Written by The article was produced using automated technology, and was thoroughly checked for accuracy and quality by an editor on our editorial team. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate from late 2021. They are passionate about helping readers gain the confidence to control their finances by providing clear, well-researched facts that break down complex subjects into bite-sized pieces.

Auto loans editor

Reviewed by Mark K. Kantrowitz Reviewed by Nationally known expert on student financial aid Mark Kantrowitz is an expert on financial aid for students, including the FAFSA and scholarships, 529 plans as well as tax benefits for education as well as student loans.

Nationally acknowledged expert in student financial aid

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