PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Can I get a car loan with an 850 credit score?
I recently checked my credit score, and I have an 850. I’ve never missed a payment, I have about a dozen credit cards, and I took out a mortgage a year ago. That said, I’ve never had a car loan, and I’m in the market for a new set of wheels. Can I get approved for a car loan with an 850 credit score?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
You can definitely get a
car loan
with an 850 credit score, provided you have the income to afford the loan and low enough debt that you aren’t stretched too thin. An 850 credit score is the highest possible credit score reported by credit bureaus, so you’re in rare company.However, you mentioned that you have dozens of credit cards and a mortgage, which could create issues if it pushes your debt-to-income (DTI) ratio above 43%. The DTI is another major factor that lenders look at before they approve your car loan. It’s calculated by taking your monthly debt payments and dividing them by your monthly pre-tax income.
If you currently have more than a 43% DTI, pay off some credit cards before applying for your car loan.
In all likelihood, a lender will approve you and offer you an extraordinarily low interest rate. According to NerdWallet, the average car loan rate for someone with your credit score is:
- 2.58% for new cars
- 3.68% for used cars
You may also want to shop around for dealerships advertising 0% interest financing, as you won’t pay any interest over the life of the loan and should easily qualify.
Once you’re approved for a loan, don’t forget about car insurance. Every lender wants to protect their assets by requiring full coverage car insurance, which can get expensive. But that’s when
Jerry
can help.Jerry is a licensed insurance broker that will collect the most competitive quotes from over 50 top-rated insurers in minutes. After you find a great rate, Jerry can help you buy new insurance and cancel your old policy. Users save an average of $887 per year.
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies