What Are the Average Car Loan Rates by Credit Score?

Whether you are shopping for a new or used vehicle, you should pay close attention to the interest rate offer for the loan. After all, your interest rate will determine the total cost of your loan and your monthly payments.

If you have a good credit score, you can expect to receive offers for low interest rates for your car loan. However, your rates will be higher if you have a fair or poor credit score.

Banks have a good reason to assess interest rates based on credit histories and scores. From their experience, people with low credit scores are more likely to default on their automobile loans and make late payments than customers with higher credit scores.

Credit Score and Average Car Loan Rates


Before you purchase your next vehicle, you should request a copy of your most recent credit score and reports from each credit bureau. After you review this information, you can refer to the information to get an idea of theĀ automobile loan interest rates offer that you can expect to receive.

1. A super prime credit rating falls between 781 and 850. With this rating, you can expect to receive an offer as low as 2.6 percent for a new car loan and 3.4 percent for a used car loan. If you have a super prime credit rating, you can shop around for the best deal.

2. A prime credit rating falls between 661 and 780. With a prime rating, you can expect to receive an offer as low as 3.59 percent for a new car loan and 5.12 percent for a used car loan. If you have a prime credit rating, you will be able to shop around for good loan deals.

3. A nonprime credit rating falls between 601 and 660. With a non-prime rating, you can expect to receive an offer as low as 6.39 percent for a new car loan and 9.47 percent for used car loan. If you have nonprime credit rating, you won’t have as much leverage to shop around as super prime and prime credit borrowers.

4. A subprime credit rating falls between 501 and 600. With a subprime rating, you can expect to receive an offer as low as 10.65 percent for a new car loan and 15.72 percent for a used car loan. If you have a nonprime credit rating, you will have only a few loan options.

5. A deep subprime credit rating falls between 300 and 500. With a deep subprime credit rating, you can expect to receive an offer as low as 13.53 percent for a new car loan and 18.98 percent for a used car loan. If you have a deep subprime credit rating, you may only qualify for loans that offer alternative car financing.

As you can tell from the credit information, your credit score has a significant impact on the amount of money that you will pay in interest for a new or used car.

Posted in: Personal Finance

Top of page