Have you ever wondered what the number of an average credit score is? Some people don’t pay much attention to their credit score, but knowing if you fall into the poor, average, or good range is essential to maintaining control of one of your biggest financial assets. If you’re hoping to finance a Nissan any time soon, this three-digit number is important. Your credit score can impact how much you end up paying in interest for a vehicle, or if you get approved for a loan at all.
You’ve probably noticed that credit scores fall on a range of numbers. While a 650 might not seem too far off from a 700, you might be surprised to know that just this little drop can significantly impact the willingness of lenders to loan you money. Here’s a brief overview of what classifies as an average credit score, as well as other helpful information.
Do I Have Bad Credit?
While it’s not recommended to have your credit run frequently, you should take care to notice your score each time your credit is checked. If you’ve worked with a vehicle financing office lately about purchasing a vehicle, they might’ve run your credit already. To find out what your credit score is considered, check out the ranges and their descriptions below:
- Bad Credit – 300 to 650. Unfortunately, the biggest gap that you can fall into on the credit score chart is the bad credit range. As previously stated, there is a huge difference between 650 and 700.
- Fair Credit – 651 to 700. While falling into this range probably won’t prevent you from getting financed, you might find yourself facing a high interest rate.
- Good Credit – 701 to 759. This is the area that is considered “average credit.” While not excellent, falling into this range will get you financed at a decent rate.
- Excellent Credit – 760 plus. With a score of 720, you should be able to get a very good deal on an automobile loan, but you’ll need a score of at least 760 to catch the best mortgage rates. Having an excellent credit score opens many doors and gives you great opportunities to purchase the things that you want and need at a particularly low interest rate.
How Do I Improve My Credit Score?
Are you not so happy with your credit score? Don’t worry, you can always improve your credit score for your next car purchase—it’ll just take a bit of time. For starters, if you have any outstanding debts, especially if you’re late with payments, write out a plan to get them paid off. On the other end of the spectrum, if you have no credit or no open line of credit that’s keeping your score high, take out a personal loan from your bank to pay back, or make a purchase at a higher interest rate and then refinance after you’ve been making payments for six months.
Your average credit score will get you a car loan, but it more than likely will not be the best deal available.
Special Auto Financing in Brockton, MA
Are you looking for a new vehicle? Stop by Nissan 24 and let us put you in the driver’s seat to test drive of one of our favorite models. Let us also assist you in getting the financing terms you need to purchase your next new vehicle. We’re conveniently located near the areas of Stoughton, Randolph, and Brockton. If you’d like more information, contact us online today!