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Do you have some tips for getting a car loan for a first-time buyer with a 700 credit score?
I'm buying a car for the first time with a car loan. I currently have a credit score of 700. Is this good enough to get a car loan, and do you have any other tips?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“A 700 credit score is considered good, which means you can probably snag about four percent to five percent on a new car loan or six percent to eight percent on a used car loan.
However, this is only one aspect that a lender considers. They also examine:
- Income
- Amount of debt
- Employment status
- Residency
- Loan-to-value ratio
- Debt-to-income ratio
The first step you need to take is to pay off all your debt, or as much as you can to lower your credit utilization to 10% or under. Next, start thinking of ways to get a bit of extra cash for a down payment. Hopefully, you get approved.
But also remember that if you’re getting a car loan, you’ll also need full-coverage car insurance, not just liability coverage. So go to
Jerry
to get competitive quotes and figure out how much you’ll spend in a month on your car.”View full answer
- Gregory R.
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