1. Home
  2. Credit Scores 101
  3. Is 700 a Good Credit Score to Buy a Car?

Is 700 a Good Credit Score to Buy a Car?

Ali Zane is a credit repair expert, advocate, and author with nearly 20 years experience getting positive results for his credit repair clients.

Understanding your credit score and knowing what is considered a good score can help you make an informed decision about purchasing the car of your dreams.

In this article, we will discuss the answer to whether or not 700 is a good credit score to buy a car, as well as some tips on how to improve your credit score if needed.

What’s a Good Credit Score to Buy a Car?

When it comes to purchasing a car, your credit score plays an important role in determining what kind of loan you can get and the interest rate associated with it. Generally speaking, the higher your credit score is, the better chance you have of getting a lower interest rate on your loan. 

To give a ballpark figure, most lenders consider a score of 700 or higher to be a good credit score. Of course, this can vary depending on the lender, but it is a good benchmark to aim for if you are looking to get the best loan terms possible.

According to Experian Information Solutions, here are the annual percentage rates for car loans you may be able to secure depending on your credit score: 

 

Credit Score Average APR (New Car) Average APR (Used Car)
Superprime: 781-850 3.84% 3.69%
Prime: 661-780 4.90% 5.47%
Nonprime: 601-660 7.25% 9.81%
Subprime: 501-600 10.11% 5.86%
Deep subprime: 300-500 12.93% 19.81%

What is a FICO Auto Score?

The FICO auto score is a scoring system that is tailored for auto lenders to help decide whether or not to approve an application for a car loan. It’s based on information from the individual’s credit report and uses predictive analytics to assess the risk of granting a loan. 

The score ranges from 250–900, with higher scores indicating lower levels of risk. People with higher scores tend to have better loan terms and lower interest rates.

The specifics of the FICO auto score are not made public, but it differs from the standard scores by incorporating factors such as the length of time since a credit inquiry was made, how recent your car loan inquiries are, and the types of vehicles that have been inquired about. 

Learn about the different types of fico scores.

What Credit Score Do Car Dealers Use?

When you’re shopping for a car and start the financing process, the dealership will likely pull your credit report to assess your creditworthiness. It is important to be aware of which type of credit score they use so that you can get an accurate picture of where you stand financially. 

Typically, car dealers use the FICO auto score, taking information from your credit report to assess your risk levels and creditworthiness when it comes to taking out a car loan or lease. In addition to using the FICO auto score, some dealerships might also use their own in-house scoring system to assess potential customers. This score could be based on a variety of factors and is usually not shared with the customer.

We should always keep an eye on the health of our credit score, aim to improve it, and lastly safeguard it against malicious activities like identity theft so we have the biggest chance of covering all the needed factors.

Can I Buy a Car With a 700 Credit Score?

It is possible to buy a car with a 700 credit score, but it depends on what type of loan you are looking for and the terms that come with it. Generally speaking, a 700 credit score will qualify you for more favorable interest rates than those with lower scores. 

That said, having a higher credit score can make it easier to get an auto loan from a lender willing to offer you the best terms. Your credit score may also impact the amount of money down you will need to put on the vehicle and whether or not you are required to make a larger initial payment. 

A high score can also help you get approved for longer loan terms and more lenient repayment options that might not be available to those with lower scores.

Is It Necessary to Pay a Down Payment on a Car If You Have a Credit Score of 700?

The answer to this question really depends on the lender and the type of loan that you’re applying for. Generally, if you have a credit score of 700 or higher, you may not be required to provide a down payment when financing a car purchase. 

However, it is still possible that a lender could require one in certain cases, especially if they feel that you don’t have sufficient funds or income to cover the loan. Certain types of car loans such as those with extended terms (longer than five years) or subprime loans (for individuals with lower credit scores) may require a down payment. 

Ultimately, it’s best to discuss the requirement for a down payment with your lender to see what they require.

How Can You Improve Your Credit Score?

Improving your credit score is possible, but it takes time. To make a significant improvement in your credit score, you need to make sure that all of your payments are made on time and that you do not carry any high-balance credit cards. Reducing existing balances and negotiating with creditors can also help improve your credit score. 

Aside from those, you can use credit-building methods such as obtaining secured credit cards, becoming an authorized user on someone else’s account, and ensuring that your name is not listed on any fraudulent accounts. 

The most important thing you can do is monitor your credit score over time, as this can give you an idea of how effective your efforts have been. You can request a free credit report once a year from each of the three major bureaus: Equifax, Experian, and TransUnion. Once you get your hands on your credit report, check for errors and dispute them with the credit bureaus. 

Does It Hurt Your Credit Score to Buy a Car?

It is true that buying a car can have an impact on your credit score, but the effect is often not as dramatic as people think. When you buy a car, there are two primary ways it can affect your credit: applying for financing and making payments. 

When you apply for financing, lenders will usually do a “hard inquiry” into your credit history. This means they will look at your credit report and score to decide if you qualify for financing and what interest rate to offer you. 

While this does cause a slight dip in your credit score, the effect is usually minor and only temporary — it typically drops no more than 5-10 points, and returns to normal within a few months. 

Once you have the car, it is important to make your payments on time and in full each month. Every missed or late payment will be reported to the credit bureaus and can bring your score down significantly. 

Remember that if you finance a car with a longer loan term (more than 5 years), your credit utilization rate (the amount of available credit you use compared to your total limit) will go up, which can have a negative effect on your score. 

Buying a car does have an impact on your credit score, but if you manage it responsibly by making payments on time and in full each month, it will have a minimal effect. In the long run, your credit score should remain relatively unchanged or even improve if you follow a responsible budget and use good financial habits.

How Fast Will a Car Loan Raise My Credit Score?

Taking out a car loan can significantly raise your credit score. The amount and speed of improvement depend on several factors, including the size of the loan, how quickly you pay it back, and how much debt you already have. 

The larger the loan, the more it will impact your credit score. If you take out a loan for over $10,000 and keep your payments up to date, you could see an improvement in your score of 70 or more points. 

Other factors that can influence the size of the credit score boost from taking out a car loan include: 

  • How much debt you already have
  • How many accounts you have open
  • Whether you have any delinquencies or bankruptcies on your credit report.

Your payment history also plays a big role in how quickly your credit score will go up when you take out a car loan. If you make all of your payments on time, without fail, your score can increase more rapidly than if you miss or delay payments.

Your Car Loan Can Help You Build Better Credit

Taking out a car loan can help rebuild your credit score. When you make timely payments on your loan, this positive action will be reported to the relevant credit bureaus and make it easier to qualify for other forms of financing down the road. 

The good news is that car loans are typically easier to qualify for than other types of financing, such as credit cards or personal loans. This makes it a great way to start rebuilding your credit score and creating a better financial future.

Any Questions?

Find credit repair near me or call us:

(866) 611-4629
Imax Credit Repair Firm
5.0
Based on 127 Reviews
Hountman J.
Hountman J.
2022-12-15 07:43:42
I have worked with several credit repair companies for my credit yet they were not real, and so far it's not horrible although for some reason the numbers...
Regina H.
Regina H.
2022-12-10 14:37:32
Wonderful guy and service. I reached out to get critical help on my credit. His assistant first reached out and requested additional info but then did not...
Evelyn C.
Evelyn C.
2022-11-28 13:21:52
Having a credit card debts can actually be a very bad experience. I didn't get approved because of my debts, I mailed JEFFCLOUD about my credit issues. He...
Kenzo B.
Kenzo B.
2022-11-14 17:11:34
Don't miss out on getting your credit repaired with SKYPLUS760 credit specialist. He gave a very great help to me and my old time friend to fix our credit...
Chris W.
Chris W.
2022-11-10 05:35:25
I recently got in contact with an ethical hacker that erased negative report off my credit and increase my bad score from 500 to 790 excellent score and...
Wilson M.
Wilson M.
2022-11-08 12:15:07
I'll like to share my story too. 2 months ago I was homeless, I desperately needed help in increasing my credit score to be able to obtain a new place to...
Alice K.
Alice K.
2022-11-08 04:47:32
I have never been this happy in my life. I contacted JEFFCLOUD CREDIT SOLUTION 3 weeks ago to fix my credit and the process was supposed to last for 14...
Mylon H.
Mylon H.
2022-11-03 13:30:06
Ali is amazing. He is very proactive and keeps his word. I had a fraudulent account on my credit report and he got it removed and won me a nice settlement...
Anna T.
Anna T.
2022-10-28 16:57:30
A good credit profile is a very important tool for anyone who needs financial freedom. SKYLINK CYBER SERVICES helped me to achieve optimum credit profile....
Jollina D.
Jollina D.
2022-10-22 19:02:55
I came across so many reviews about PARAGON CREDIT SOLUTION for the great job they are doing. And I was very need of a good hacking company to help Me and...
Gordon W.
Gordon W.
2022-10-15 08:35:23
I strongly recommend the immense service of JEFFCLOUD CREDIT SOLUTION, He improved on my FICO ratings from 565 to 802 in 7days across all the 3 credit...
Charlotte S.
Charlotte S.
2022-10-14 13:42:01
I encountered challenges of getting a new home because of awful financial records, I entered a credit repair deal with JEFFCLOUD CREDIT SOLUTION, the...
Allison C.
Allison C.
2022-10-12 14:37:49
After my marriage 3 months ago, I applied for a home loan, so that I and my wife could move to a better apartment, but I got a negative reply, which I was...
Alice L.
Alice L.
2022-10-11 06:03:42
Having a messy credit is definitely one of the biggest financial problem one can have, I needed a loan to get a car so has boost my bad financial condition...
Gordon W.
Gordon W.
2022-10-05 21:06:09
Don't fall Victim like i did, I've been ripped off a couple times before I luckily got a reliable contact named JEFFCLOUD CREDIT SOLUTION that works with...
John R.
John R.
2022-09-13 11:18:37
I had an issue with my BMW account that was not under my control. I spoke to Ali (he even gave his mobile number) and he was professional and optimistic he...
Esseff P.
Esseff P.
2022-09-02 12:21:23
So if you notice my reviews I specifically reserve yelp for horrible experiences. So that should go a long way when I post this incredibly positive...
Addison C.
Addison C.
2022-06-22 07:32:59
I was very VERY skeptical when I set out to have a late payment that was incorrectly posted to my credit removed. I was even skeptical of all of the 5 star...
Shelby L.
Shelby L.
2022-02-12 09:03:57
If you have long term financial goals but are feeling discouraged, then I can assure you that Ali's Team is where you'll find hope. During my initial...
Lazaro V.
Lazaro V.
2022-01-25 15:34:17
Amazing results Ali got 3 collections removed from my credit in very short time worth every penny
Elizabeth K.
Elizabeth K.
2021-10-25 03:44:15
I wish I would have read the reviews before I pick this company. There's a review of mine on there with my picture. I have called the Business Bureau and...
John R.
John R.
2021-10-21 02:21:14
What I expected from the website was more than the service I was rendered, my score is pretty much in the bads and with this company its going to take me...
Alfred H.
Alfred H.
2021-10-20 16:52:02
The last time I had a credit card score increment through a third-party was in 2018 because I needed it for an emergency then and there was no alternative....
Napoleon M.
Napoleon M.
2021-10-20 00:50:36
I wish I would have read the reviews before I pick this company. There's a review of mine on there with my picture. I have called the Business Bureau and...
Cindy G.
Cindy G.
2021-10-19 06:09:49
I'm so grateful to those who recommended [email protected] to me !!! When I say it's one of the best investments I made in myself this year....
Judith W.
Judith W.
2021-10-18 08:12:02
The truth is increasing a credit card score is not a child's play, it requires a level of sophisticated tech skills. Credit cards are designed with complex...
Joshua S.
Joshua S.
2021-10-18 02:55:51
I wish I would have read the reviews before I pick this company. There's a review of mine on there with my picture. I have called the Business Bureau and...
Elmer W.
Elmer W.
2021-09-27 12:58:20
If you have been the victim of an unregulated binary options scam or any scam at all then you are 100% eligible according to the law to recover what was...
Meg O.
Meg O.
2021-09-09 07:52:43
I had a consult with Ali a few weeks ago. He was incredibly thorough and responsive to the concerns I had with items on my credit report. He advised me to...
Rhonda W.
Rhonda W.
2021-08-17 18:45:43
8 Months back I needed to pay up my mortgage and as well change my car so I applied for a long and was declined because my credit was bad and got lots of...
Mary M.
Mary M.
2021-08-03 18:56:45
I went through a divorce with my husband and I was in a terrible situation that I urgently needed to repair my credit. I was able to find a hacker called...
Binny M.
Binny M.
2021-06-30 08:58:47
I've used Ali several times over the years for my own clients and he's been nothing short of amazing. He responds quickly, gives honest feedback, and is...
Shane B.
Shane B.
2021-02-18 12:59:02
Ali and his team work miracles ! I had an American Express business debt that was being listed on my personal credit. Couldn't get anyone to remove it and...
Jeffrey S.
Jeffrey S.
2021-01-11 19:22:22
The other reviews speak for themselves. This guy is who he says he is and is truly a gem. The amount of money Ali saved me will equate to hundreds of...
Ted j.
Ted j.
2020-11-01 03:02:59
This company was very helpful answered all my questions and even said if anything came up on my report that I was not sure about to contact them and they...
Anthony B.
Anthony B.
2020-10-30 19:28:21
Ali is truly amazing. I have been trying for years to get rid of 2 bad accounts on my credit. Within 1 month, he was able to get Capital One to completely...
Mary M.
Mary M.
2020-10-23 02:04:19
I am very thankful to [email protected] for helping me regain control over my online reputation and look forward to working with them in the...
Theresa Y.
Theresa Y.
2020-09-03 21:29:08
What can I say other then Ali is simply amazing. So very helpful and knowledgeable! My situation didn't require me to hire Ali but he sure did take the...
Rein d.
Rein d.
2020-08-24 14:33:24
thank you so much for the help Mr. Ali, It was such a blessing to meet you and helping me out for our credit needs. You Have a heart to help people like me...
Tyson L.
Tyson L.
2020-07-13 09:46:01
I don't really leave reviews, but Ali was exceptional. Ali was patience and very professional. He was quick at responding back to me even during COVID 19. I...
Abdullah S.
Abdullah S.
2020-07-10 12:31:08
Very honest person and ultra professional If you looking for honest advice and good work this is the place you put your trust in
Luke H.
Luke H.
2020-06-26 18:15:48
Ali and Jose were amazing to work with even during covid19. There was an issue with one of my credit cards that was impacting my credit score that I didn't...
Brainard C.
Brainard C.
2020-05-31 14:30:56
Permit me to introduce this life saver Lexington Law is so frustrating because I was with them for 3 years and my score only jumped by 20 points, only 3...
Alireza S.
Alireza S.
2020-05-13 20:49:13
Ali is great! Smart and responsive! I really enjoyed working with him. I found an issue in my credit history, which I had no idea about it, when applied for...
Annette N.
Annette N.
2020-04-28 15:52:21
Mr Zane has provided me the assistance without charging me a penny. He asks for what the prob is and gave me step by step instructions since with the...
Patrick R.
Patrick R.
2020-04-13 19:50:17
I really loved and enjoyed the generosity, 100% responsive and 100% credit repair service offered me at Debooth Credit Solution. Hit them up for credit...
Robert O.
Robert O.
2020-04-07 14:15:15
[email protected] is real and good to recommend. I review comment and testimonies about him in trust and also the name 760PLUS motivated my...
Julie R.
Julie R.
2020-03-19 04:03:05
Ali was amazingly generous with his time and knowledge. He provided me with much needed information about a complex credit problem I was having. It was a...
Girish B.
Girish B.
2020-03-02 13:12:41
I had worked with Ali 2 years ago to clear up my credit report. Ali was very thorough, informative, and easy to work with. He was also super transparent and...
Malcom W.
Malcom W.
2020-02-15 17:00:07
My credit score moved from below 500 to over 780 across all credit bureaus. Not just that, he also helped me take down some major debts. This is not a joke,...
Brenda P.
Brenda P.
2020-02-13 16:04:52
Hi Folks my name is Brenda Parker; few weeks I was looking for possible means to get my credit fixed searched online followed instruction on YouTube video...
John O.
John O.
2020-02-07 02:05:22
I cleared my debt total of 40,000 dollars last year. It was very easy for me with the help of Globaltechnologies46 (AT) G mail (dot) Com. I contacted him...
Austin B.
Austin B.
2020-01-18 23:52:57
Happy to have honored my mother in-law's invitation last week for she helped introduce me to 760PLUS CREDIT SCORE who did a wonderful job by clearing all...
Joan C.
Joan C.
2020-01-04 14:38:02
I am Joan Cole from Texas just want to inform everyone out here seeking for a lasting solution on credit repair to contact OCTOPUS CREDIT SOLUTION on...
Fatima L.
Fatima L.
2019-12-02 23:38:31
Team XAP did me a great deal with less the amount these scammers took from me. XAP CREDIT SOLUTION increased my score to 800 removed all the negatives...
Audrey K.
Audrey K.
2019-11-20 13:01:18
Recently we applied for a mortgage loan, due to sub-prime mortgage mess, we had approval and then overnight the bank went belly-up. Our credit score was...
Sherry K.
Sherry K.
2019-11-12 15:59:49
With joy in my heart I'm happy and a proud owner of a brand new SUV, Few months back I was in a very terrible situation couldn't turn right or left my...
Bradley M.
Bradley M.
2019-11-11 18:09:41
DEBOOTH is splendid and offers reliable, and fast services. My bad financial record was written off within 8days of contact. DEBOOTHCREDITSOLUTION helped me...
Margret L.
Margret L.
2019-10-28 16:31:26
Greetings, I want to use this medium to appreciate Ghost Virus for helping me clear all negative items on my credit depriving me from a lot of things I...
Betty L.
Betty L.
2019-10-23 07:59:36
I 'm using this opportunity to recommend and show my gratitude to a professional hacker OCTOPUS CREDIT SOLUTION who has proven his professionalism by...
Glad D.
Glad D.
2019-10-19 20:12:28
I had a nasty company report an 89 cent and 4 dollar payment as late to the bureaus. This effectively resulted in my score dropping 159 points. Did my...
Angelina S.
Angelina S.
2019-10-17 23:53:16
I finally got my credit fixed through the help of a credit company XAP CREDIT SOLUTION, this company prides itself with various levels of credit repair....
Emily R.
Emily R.
2019-10-17 13:48:31
I just want to share this testimony to encourage those with bad credit report whose life seems unbearable and uncomfortable. I have been battling with same...
Scott L.
Scott L.
2019-10-15 22:17:26
Am Scott Lewis, I really want to appreciate the Almighty God for restoring my financial status through the help a stranger who is into hacking,credit repair...
Kathy P.
Kathy P.
2019-10-14 14:15:48
Kathy Potter West Virginia, I'm writing this review to appreciate Ghost Virus the credit repair specialist. Few weeks back I needed an urgent credit repair...
Rose J.
Rose J.
2019-10-11 00:44:47
I came across a credit specialist on a beautiful morning while searching for a hacker to fix my credit so as to enable me apply for a business loan to...
Cheri P.
Cheri P.
2019-10-10 02:56:05
I consulted with Hack West Credit Repair ([email protected] and +1 (424) 307 2638) early this year when I first started a career in the oil and gas...
Margarida B.
Margarida B.
2019-07-15 05:16:16
My husband was fighting cancer and it almost crucified us, I needed my credit cleaned so I can get a place to live with my family. I had repos, late...
Maui ..
Maui ..
2019-07-12 14:15:26
I did not get to use Ali's services (yet) but I inquired about a potential credit situation and whether he would be able to help. Ali was responsive to my...
Godson W.
Godson W.
2019-07-10 00:08:14
How do I appreciate [email protected]/+1 424 307 2638? Hack West helped in raising my credit card limit from $10000 to $20,000 limit in couple of days....
Alexander D.
Alexander D.
2019-06-28 16:27:42
I rarely leave a Yelp review, but Ali and his team fully deserve it. I had a late payment posted from Credit One bank after 5 months of my account being...
John A.
John A.
2019-06-27 14:49:33
I must have talked to 10 credit counselors/advisors before I found one I was comfortable working with. When I talked to Ali, I knew immediately I wanted to...
M P.
M P.
2019-06-27 07:13:02
Amazing! Did EXACTLY what they sought out to do. I'm actually quite shocked as I didn't think they would get rid of as many negative accounts as they did....
Sean P.
Sean P.
2019-06-19 16:44:37
These guys are the most reputable and honest company around. Ali and his team go out of there way to help and give great advice. They helped me with my...
Shiran K.
Shiran K.
2019-05-28 10:11:46
Hands-on the best talented individual I have ever had the pleasure to work with. It's not only the final result which was removing late payment on my credit...
Joan B.
Joan B.
2019-05-21 14:59:47
I have been researching people who could help me get out of this debt quickly and I stumbled across several positive reviews about HACK WEST CREDIT REPAIR....
Joseph S.
Joseph S.
2019-05-21 02:35:18
Hello, My unprofaned gratitude goes to Dr. Ahmed Krishna, Investment/Loan adviser to some Arab Investors Based in Saudi Arabia Middle East. They have funds...
Juliet S.
Juliet S.
2019-05-20 07:08:31
My husband and I were trying to get a VA mortgage. My scores changed fast, major ups and downs to the extent it dropped 123 points when my student loan...
Juli H.
Juli H.
2019-04-24 17:56:13
I had a few questions about hard inquiries and Ali was very helpful and honest and he said that at this point my credit issues can only solved by me paying...
Irvinne O.
Irvinne O.
2019-03-27 15:39:08
Ali got back to me asap and explained to me that his team could not help me with my financial needs but he pointed me in the right direction and he was very...
Lan M.
Lan M.
2019-02-16 23:18:20
Ali was able to remove the collection item on my credit report within 45 days! My credit scroe is now back to 750 from 660. He was very patient and...
Fred T.
Fred T.
2018-12-03 12:10:36
Ok let me tell you my story: Last October I made a payment for my vehicle on their app. 30 days later I logged in to make the payment for month of...
Shiran K.
Shiran K.
2018-11-02 10:56:15
Hands-on the best talented individual I have ever had the pleasure to work with. It's not only the final result which was removing late payment on my credit...
Nino J V.
Nino J V.
2018-09-21 21:05:28
I consulted with Mr. Ali Zane over the phone 9/7 about my post bankruptcy 6 years ago where some of the accounts are reflecting negatively and...
Zoey S.
Zoey S.
2018-09-11 10:21:01
Ali Zane was extremely helpful. He answered all of our emails and returned our voicemails quickly. He took his time to explain things we had questions about...
Shiran K.
Shiran K.
2018-09-05 13:44:58
Hands-on the best talented individual I have ever had the pleasure to work with. It's not only the final result which was removing the late payment on my...
Rachael M.
Rachael M.
2018-07-25 09:25:59
Something popped up on my report that wasn't mine. Ali's advice is clear and concise. It was way easier than I anticipated. I will refer all my friends to...
Allen R.
Allen R.
2018-05-21 16:53:12
Ali was really helpful and honest. I called to check if its possible to remove one negative item that I have in my credit report. Ali was asking me to get...
Preston T.
Preston T.
2018-04-25 11:12:08
I called Ali to review my credit report to make sure everything was in line. First, he was very proactive and responded very quickly to my voicemail. After...
Deborah K.
Deborah K.
2018-03-12 14:31:50
Super straightforward, easy and helpful. Gave me odds on whether or not they'd be able to get two delinquencies removed from my report.I They got them...
Charles K.
Charles K.
2018-03-02 14:15:43
Ali gave me a free short 2 minute consultation on the issues I was facing with my credit and told me to wait a month before checking with him. If I do have...
Next Reviews

Any Questions?

Our team of credit repair experts are just a click or call away.

Find credit repair near me or call us:

Menu