shopping for your car
How Your Credit Affects Buying a Car
Your credit score is a numeric snapshot that's based on the information in your credit report. Lenders check it to see how well you've used credit in the past. This review helps determine if you qualify for a car loan and what terms you'll receive. The most common credit scoring system is known as "FICO." FICO scores range from 300 to 850. To obtain financing, how high should your FICO score be?
- 450
- 570
- 620
"C" is correct. To qualify for a loan with an affordable interest rate, you'll need a credit score that's at least this high. If you want the best possible interest rate, you'll need to score in the mid-700's or higher.