What Credit Score is Needed to Finance a Car?

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If you’re one of the many people in the Powell and Cody area whose credit has taken a hit in recent years, you might be wondering how this will impact your ability to finance a new or used car. The good news is that most dealerships will work with you even if your credit score isn’t where you’d like it to be. Making monthly car loan payments on time is a great way to rebuild your credit score, too. Find out what you need to know about credit scores and auto loans with Yellowstone Toyota. 

Average Credit Score to Finance a Car

Drivers who took out an auto loan in 2022 had an average credit score of 735 for new vehicle purchases and 690 for pre-owned purchases. Those numbers are in the Prime category of credit scores. Here’s how credit scores are classified: 

  • Superprime: 781 to 850
  • Prime: 661 to 780
  • Non-prime: 601 to 660
  • Subprime: 501 to 600
  • Deep Subprime: 300 to 500

Even if your credit in Billings, MT falls below the Prime level, you can still likely get an auto loan. It’ll have a higher interest rate than loans made to borrowers with higher credit scores. 

How to Get Car Financing With Bad Credit

If you have a credit rating that’s below Non-Prime, there are some things to do when it’s time to purchase a car: 

  • Focus on Positives: Even with a bad credit score, you can do some things to improve your odds of getting an auto loan. If you’ve made all your personal credit payments on time but business debt has impacted your score, you’re in a better position for loan approval. 
  • Bring Proof of Financial Stability: Meet with potential lenders and bring proof that you’re financially stable. You can do this with pay stubs, proof of address, utility bills, proof of insurance, and proof that you’re reliably employed. 
  • Show Collateral: If you own your home or have the cash for a down payment of at least 25 percent, your chances of getting an auto loan with a good interest rate greatly increase. 

Discuss Your Options With Yellowstone Toyota

When you’re ready to purchase your car but you’re concerned about your credit score, contact Yellowstone Toyota. Our finance professionals would love to help you! You can also learn more about auto financing and ways to save money on your next vehicle purchase when you visit our car-buying tips.