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When applying, having a FICO score between 670 and 850 generally qualifies you for competitive interest rates and loan terms. But even with a 550 credit score, it is still possible to get a loan.
Shopping around is the best way to compare your options. Here’s what to know.
Auto loan interest is the cost of borrowing money to purchase a car. The lender will look at your credit score, debt-to-income ratio and other factors to determine what interest rate it offers.
According to the consumer financial website NerdWallet, the average auto-loan interest rate in the third quarter of 2023 was 7 percent for new cars and 11 percent for used cars.
Average car loan interest rates impact the auto loan you qualify for, and understanding auto loan interest and your credit score can help you make a smart buy.
Knowing your credit score and the average rates to expect and applying for preapproval are just a few of the many ways you can secure a budget-friendly car loan. 1. Know your credit score
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