A 650 credit score auto loan interest rate can vary based on the lender you choose, down payment and even debt-to-income ratio.
Also, loan terms (either 36, 48 or 60 month loans) can affect your rate as well. The longer your term is, the higher your rate will be.
A 650 credit score is fair so it’s likely a borrower will be approved for a loan, the rates, however will be quite higher than if the credit score of 720 or above.
Below you’ll find information regarding auto loan interest rates for borrowers with a 650 credit score.
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650 credit score auto loan interest rate
Here’s a table describing what rates you can expect based on credit score.
These are average auto loan rates for a new car (60 month term; $25,000 principle loan amount) and monthly payment in 2018 based on FICO scores:
- 500 – 589: 15.906%; monthly payment: $607
- 590 – 619: 14.927%; monthly payment: $594
- 620 – 659: 10.41%; monthly payment: $536
- 660 – 689: 7.399%; monthly payment: $500
- 690 – 719: 5.236%; monthly payment: $475
- 720 – 850: 3.913%; monthly payment: $459
Based on the info above, here’s what you’d pay if your score were either higher or lower:
- If your score dipped to between 500 and 589 (bad/poor credit), you’d pay an additional $4,228.
- However, if your score fell to between 590 and 619 (poor credit), you’d pay an extra $3,454.
- And if you were able to raise your score to between 660 and 689 (average/good credit), you’d save $2,189.
- But if you waited until your score reached to 690 – 719 (good credit), you’d save $3,686 on interest.
- If you reached an exceptional credit score rating of 720 – 850 (very good/excellent credit), you’d save $4,608 in interest.
(Data comes from myFICO Loan Savings Calculator.)
What credit score will auto lenders use? FICO or VantageScore?
The truth of the matter is, although your 650 FICO score is important to predicting your creditworthiness, there’s an industry-specific FICO score that caters to auto financing.
The FICO auto industry option, or auto enhanced FICO score, is based on your past auto financing history.
It ranges from 300 to 900 (unlike FICO’s classic, or BEACON, 300 to 850 range) and it weighs factors like repossessions, on-time car loan payments; also, if a car loan or lease was included in a bankruptcy, and whether your loan or lease account was sent to collections.
If you’re buying your first car, your classic FICO score will be pulled. However, if you’ve owned a car in the past, your auto enhanced FICO score will likely be used to determine your APR.
About having a 650 credit rating
Within the FICO Score system, a rating of 650 would be considered to be on the higher end of “fair” (the range goes from 580 to 669), whereas on the VantageScore 3.0 scale it would fall on the very low end of “fair” (the range here extends from 650 to 699).
As we can see from this, while both credit rating types give a denomination of “fair”, the FICO Score considers it slightly better than the VantageScore.
650 credit score auto loan interest rate facts:
- At 650, loan providers will tend to view you as somewhat risky. However, loans can still generally be negotiable and plausible, but they’ll come with stricter conditions and more strings attached to them than they would were you to have a higher credit score.
- Based on data from FICO, approximately 13.2% of all people have a score between 650 and 699.
- It is worth exploring and comparing offers (the fastest way is using online databases or credit comparing services) when buying a vehicle for the best rates.
- Used cars will have higher APRs than new cars as lenders estimate a used car might not last as long. It may have unreported mechanical issues and be less reliable because of its age.
In conclusion, as we can see from the data mentioned above, a 650 credit score auto loan interest rate is still a fairly decent rating.
There are many options for auto loans with a credit score of 650, you just have to look around a little bit and be ready to compare offers to find what´s best for your personal situation and specific needs.