Is 700 a Good Credit Score to Buy a Car?︱Green Light Auto Credit (2024)

Your credit score is an important factor when locking down financing. 700 is a good credit score to buy a car because it proves you are a responsible borrower with a credit history in the prime range. Even if your score is under 700 there are still ways to obtain affordable financing, especially at Green Light Auto Credit! Let’s evaluate how good a 700 credit score is and what you should know before buying your next vehicle.

How Good is a 700 Credit Score?

Credit scores can be anywhere from 300-850, with five qualifying bands ranging from “poor” to “excellent”. The higher your score, the more likely you are to secure better rates and loan terms, but you don’t have to have perfect credit to buy a car. In fact, most people don’t!

Lenders will consider your credit score when determining rates. According to Experian, here is a snapshot of what type of loan and rate you can expect based on your history:

  • 781-850: Superprime loan at 3.65% (new) or 4.29% (used)
  • 661-780: Prime loan at 4.68% (new) or 6.04% (used)
  • 601-660: Nonprime loan at 7.65% (new) or 11.26% (used)
  • 501-600: Subprime loan at 11.92% (new) or 17.74% (used)
  • 300-500: Deep subprime loan at 14.39% (new) or 20.45% (used)

As you can see, a 700 credit score puts you in the “good” or “prime” category for financing, making 700 a good credit score to buy a car. While it’s always a good idea to get your credit score in its best possible shape before buying a car, if you’re already around the 700 range you will be good to go.

Can I Buy a Car With a 700 Credit Score?

In 2020, Experian reported that the average credit score to secure a used-car loan was 657, with 721 being the average for new-car loans. You can buy a car with a 700 credit score, but even if you are under 700, there are still ways to get financing.

Those with bad credit will need to supply additional proof of their financial history, including pay stubs, proof of residence, or other supporting documents that illustrate your ability to pay bills on time. You may also consider putting down a larger down payment or getting a cosigner or guarantor on your loan to improve your rate.

Buy a Car With a 700 Credit Score at Green Light Auto Credit!

At Green Light Auto Credit, our finance experts want to help you get into a good car that fits your needs and budget, and we’ll work with you to find financing that works. Contact us to get started today.

Is 700 a Good Credit Score to Buy a Car?︱Green Light Auto Credit (1)

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Is 700 a Good Credit Score to Buy a Car?︱Green Light Auto Credit (2024)

FAQs

Is 700 a Good Credit Score to Buy a Car?︱Green Light Auto Credit? ›

A credit score of 700 is good enough for you to negotiate the best interest rates. Dealerships prefer that customers buy new vehicles instead of old ones and the interest rates for financing a new car are much better than the interest rates for buying a used car.

Can I get an auto loan with a 700 credit score? ›

Having a 700 credit score puts you in the “prime” category for borrowing. According to Experian, the average rates for this category are 6.44% for new-car loans and 9.06% for used-car loans.

How much money can I borrow with a 700 credit score? ›

You can borrow from $1,000 to $100,000 or more with a 700 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.

What credit card can I get with a 700 credit score? ›

Comparing the best cards for a 700 credit score
Card nameAnnual feeBankrate review score
Capital One Venture Rewards credit card$954.9/5
Blue Cash Everyday® Card from American Express$04.6/5
Citi® Custom Cash Card$04.4/5
Wells Fargo Active Cash® Card$04.3/5
2 more rows
Jan 25, 2024

What is a typical credit score for an auto loan? ›

However, the vast majority of borrowers have scores of 661 or higher. Borrowers with scores of 501 to 600 account for about 13% of cars financed, while people with scores of 500 or below account for less than 2%, according to Experian.

Can I get a $20000 loan with a 700 credit score? ›

As far as qualifying, you'll often need good or better credit (a FICO score above 670), and a stable income source that shows you can afford the payments. Annual percentage rates (APRs) for personal loans typically range from around 6% to 36%, depending on your credit profile and other factors.

Can I get a $50000 loan with a 700 credit score? ›

With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000).

How to increase credit score from 700 to 750? ›

Here are some of the best ways.
  1. Pay on Time, Every Time. ...
  2. Reduce Your Credit Card Balances. ...
  3. Avoid Taking Out New Debt Frequently. ...
  4. Be Mindful of the Types of Credit You Use. ...
  5. Dispute Inaccurate Credit Report Information. ...
  6. Don't Close Old Credit Cards.
Feb 7, 2021

Can I get a 30k loan with a 700 credit score? ›

You will need a credit score of 580 or higher to get a $30,000 personal loan in most cases, along with enough income to afford the monthly bill payments. Other common loan requirements include being at least 18 years old, being a U.S. citizen or a permanent resident, and having a valid bank account.

How to go from 700 to 850 credit score? ›

Still, if you'd like to take steps to improve your credit, you may want to consider these healthy credit tips:
  1. Pay your credit card bills often. ...
  2. Keep a solid payment history. ...
  3. Consider your credit mix. ...
  4. Increase your credit limit. ...
  5. Don't close old accounts. ...
  6. Regularly monitor your credit report.
Nov 30, 2020

Can I get an American Express card with a 700 credit score? ›

You need a credit score of 700 or higher to get an American Express card, along with a steady income that enables you to afford the monthly bill payments. American Express only offers credit cards for people with good credit or better, so you may have to work on improving your credit score before applying for an Amex.

Can I buy a house with a 700 credit score? ›

Yes. Assuming the rest of your finances are solid, a credit score of 700 should qualify you for all major loan programs: conventional, FHA, VA and USDA loans all have lower minimum requirements, and even jumbo loans require a 700 score at minimum.

What is a good credit score to buy a house? ›

It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly mortgage payments.

What FICO score do car dealers use? ›

The score range for the Auto Score is 250-900 (instead of the traditional 300-850). FICO promotes that Auto Score will help dealerships and lending institutions in five distinct ways: Increase regulatory compliance.

How fast will a car loan raise my credit score? ›

How fast will a car loan raise my credit score? There's no set time frame for how long it takes a car loan to improve your credit score. After buying a car, you can expect to see your score improve after making monthly payments on time and paying down your loan balance.

What is the lowest credit score to buy a car? ›

Most used auto loans go to borrowers with minimum credit scores of at least 675. For new auto loans, most borrowers have scores of around 730. The minimum credit score needed for a new car may be around 600, but those with excellent credit often get lower rates and lower monthly payments.

Can I get a $100,000 loan with a 700 credit score? ›

The highest personal loan amount you can usually find is $100,000. While you may qualify for a $100,000 personal loan with a 700 credit score, it's not guaranteed. If you have a lot of debt or an unfavorable debt-to-income ratio, some lenders may limit how much they are willing to loan.

Is 715 a good credit score to buy a car? ›

Ultimately, a 715 credit score will not be a barrier to purchasing a car, but it won't secure you the best annual percentage rates — those below 6% for a new car — which will likely go to people with a score above 780.

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