How Good Does Your Credit Score Need To Be For a Car Loan in San Jose California

car loan in san jose californiaWith buying a car just in general a GOOD credit score to purchase the car would be anything above a 660 credit score. But there is no official credit score you need to ideal get approved for a car loan in San Jose.

 

Better credit scores mean better auto loan rates in San Jose CA

 

But keep in mind the higher your credit score the better the auto loan terms will be. New car borrowers have an average of a 716 credit score and used car buyers have a 657 credit score.

 

The sad part is more people are borrowing money to buy new and used cars more than ever. You can still get approved for an auto loan in San Jose with a low credit score.

 

The subprime auto loan market sums up about 19% of car buyers which means that 63% of car buyers have good credit to buy a car.

 

Subprime credit for an auto loan is anywhere from 501 to 600. Superprime credit scores get the best interest rates and those can range from 3.2% to 4.20%.

Looking for auto loan rates near you? Takes under two minutes to apply for auto financing. Get Started Online!

 

If you’re looking at cars new or used in San Jose with subprime credit you’re looking at an interest rate of about 12.4% that’s why it’s important to stay up on paying your bills. Interest rates can go all the way up to 15%-20% for used cars with subprime credit in San Jose California.

 

Sometimes you can get an auto lender to allow a co-signer for a car loan which means that the co-signer is responsible for the car loan if you don’t pay on the car loan. Don’t do this to someone, WORK ON YOUR CREDIT.

 

How an auto lender can look at your auto loans in San Jose CA

 

Know that many auto lenders in San Jose will consider more than a credit score for a used car loan in San Jose. They may also look at your debt to income ratio and down payment to see how risky you are for an auto loan. This can also extend out the terms of the loan which can be good or bad.

 

That’s why a down payment can make you a happy driver in San Jose. Make sure it’s a decent $500 down payment to start.

We even can connect you with local used car dealers that have cash for used cars in San Jose. These are called buy here pay here car dealers.

Get help with auto financing in San Jose California.

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