If you’re thinking about buying a car and need to take out a loan to do so, it’s important to have a good credit score, not only for securing the loan, but also for getting favorable rates and terms for the life of the loan. So what’s considered a good credit score? Read more to find out.
Credit Score Ranges
While credit score ranges slightly vary for each credit agency, the most commonly used agencies — Fair Isaac Corp. (FICO) and VantageScore — use a range that falls between 300 – 850, with it broken down between bad, poor, fair, good and excellent. A good credit score falls in the 701 – 759 range, while anything 760 and above is considered excellent. Here’s a break down:
- Bad Credit: 300 – 599
- Poor Credit: 600 – 650
- Fair Credit: 651 – 700
- Good Credit: 701 – 759
- Excellent Credit: 760 and above
READ MORE: How to Get Approved for a Car Loan with No Credit
How can good credit help you with a car loan?
If you have a credit score that falls in the good credit range, you’ll likely be approved for whatever car loan for which you apply. However, you may not get the best possible rates. With a credit score in the excellent credit range, you’ll probably get the best possible interest rates that are published.
Purchase a Car with Bad Credit in North Carolina
Here at AutoMax of Youngsville, we recognize that many car shoppers in North Carolina have bad or no credit, so we are open to working with customers with all types of financial situations. With our “Buy Here Pay Here” financing, AutoMax can sell vehicles to people that have had credit challenges in the past, including those with prior repossessions, bankruptcies, charge-offs and even derogatory credit. Feel free to contact us to learn more!