Generally, a credit history of 730 to 740 and above is considered excellent credit. Since you are on the average side with a 630 credit score, it is enough to secure you a 630 credit score car loan. Your credit history will affect the interest rate you qualify on your car loan.
What is a high interest rate for a car?
If you have excellent credit (750 or higher), the average auto loan rates are 5.07% for a new car and 5.32% for a used car. If you have good credit (700-749), the average auto loan rates are 6.02% for a new car and 6.27% for a used car.
What’s the interest rate for a car loan with a credit score of 600?
All loan payment amounts are based on a new car loan APR interest rate of 7.52% for non-prime borrowers with a credit score of 600 to 660. The loan terms included in this chart are for 3 years (36 months), 5 years (60 months), and 7 years (84 months). However, speak to your lender about additional loan options for new, used, or refinancing.
What’s the average interest rate for a car loan?
The higher your credit score, the less it will cost to borrow Credit score category Average loan APR for new car Average monthly payment for new car Deep Subprime (300 to 500) 14.20% $823 Subprime (501 to 600) 10.58% $769 Non-prime (601 to 660) 6.64% $713 Prime (661 to 780) 3.69% $673
How can I get Out of a high interest car loan?
If the problem is that you took out a loan with a high interest rate, either because your credit score was lower or because you didn’t shop around as well as you could have, you should probably refinance your car. Check the latest auto loan refinance rates to compare your rate with lenders’ best offers.
Why are car loan interest rates so low in Canada?
If you have multiple accounts open and have a high debt-to-income ratio (you owe a lot more than you have), then your application will look less favourable to lenders. On the other hand, if you have a clean record and an excellent score, you’ll want to be on the lookout for deals with especially low interest rates.
