Individuals with a 640 FICO credit score pay a normal 9.4% interest rate for a 60-month new auto loan beginning in August 2017, while individuals with low FICO scores (500-589) were charged 14.8% in interest over a similar term.
Yes, you can get a car loan with a 640 credit score. In fact, it may be easier than you expect–especially if you apply through us–but there will be a few provisos in regards to lenders, loan term, and interest rate.
If you are shopping for a home or a new or used car loan, a 640 credit score should allow you to find more than one finance source willing to work with you. However, because you represent a moderate level of risk, you will almost certainly be asked to pay a higher interest rate than someone who has a better score, even if their income and debt levels are comparable.
A FICO credit score of 640 falls in the average range and you can definitely get a car loan with that score but you will have to pay a higher interest rate (APR) than someone with let’s say a 680 credit score, keep in mind that lenders do not only look at the credit score when deciding who to give a car loan to.
A bad credit car loan is what you will get with a credit score of 640, but the interest might still be higher compared to what people with a higher credit score will get. Luckily, you meet the minimum credit score for most lenders and can look around and find the most affordable interest rates for yourself.
A 640 credit score on the FICO score scale of 300-850 is considered fair. People with this credit score may be considered subprime borrowers and may be offered higher interest rates or less ideal terms for credit cards and loans. Applicants with scores in this range are considered to be subprime borrowers.
Car buyers who need a loan and don’t have a good credit score often end up paying more — a lot more. Even if you have an average or better credit score, exactly how good it is can dramatically affect how much you pay to finance your car.
Running the numbers, this means someone having a FICO score in the 500 range will pay over $10,000 more in interest over the life of a five-year $30,000 car loan than will someone having excellent credit.
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So the FICO Auto Score will be weighted heavily by how you used car loans in the past, while your Base FICO score won’t have that behavior impact the score nearly as much. Industry specific scores typically range from 250 900 instead of 300 850..