Should you really want to buy a Mercedes-Benz but are worried about how to pay for it? There are many financing options that can help you get into your dream car, whether it’s a convertible, sedan, or SUV.
Some of the most common ways to get Mercedes-Benz financing have been looked at to help you get your new car home.
Many people are excited about the idea of buying a luxury car like a Mercedes-Benz. But in order to finance such a car, you also need to have good credit. So what credit score does Mercedes actually use to decide who can get a loan? Let’s find out.
Understanding Credit Scores Used by Mercedes
When Mercedes-Benz Financial Services (MBFS) looks at loan applications, they mostly use your FICO® Auto Score 9 from Experian. This score is specific to your industry and looks at different parts of your credit history, such as:
- Payment patterns
- Amounts owed
- Length of credit history
- Credit mix
- New credit accounts
Auto lenders like MBFS use the FICO® Auto Score because it provides a more accurate representation of a borrower’s credit risk for auto loans The score ranges from 250 to 900
However, depending on your location, Mercedes may also consider your FICO® Auto Score 8 from TransUnion or Experian. So your TransUnion credit data can factor into the lending decision as well.
What is the Minimum Credit Score for Mercedes Financing?
Many experts recommend having at least a 675 FICO® score to have the best shot at Mercedes financing approval. This score range is considered “good” by most lenders and indicates lower risk.
However, credit score alone does not guarantee loan approval. Mercedes also evaluates debt-to-income ratio, income, employment history and other criteria. The specific vehicle and loan terms also play a role.
Some Mercedes dealers advertise financing for scores as low as 600. But such offers may require a significant down payment and charge higher interest rates. Ideal terms usually require 700+ scores.
How to Improve Your Chances of Getting Approved
Here are some tips to boost your odds of Mercedes financing approval:
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Aim for 680+ FICO® scores – This shows lenders your creditworthiness and commitment to managing debts responsibly.
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Lower credit utilization – Keep revolving balances below 30% of credit limits on cards.
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Avoid new credit applications – New accounts can lower your score temporarily.
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Pay all bills on time – Payment history is a major factor in your scores.
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Verify credit report accuracy – Dispute and remove any errors that may be dragging your score down.
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Keep your income steady—lenders want to see steady income to make sure you can pay back your loans.
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Reduce debt-to-income ratio – Keep total monthly debts below 36% of gross monthly income.
Applying for Mercedes Financing with Challenged Credit
People who have had credit problems in the past, like late payments, collections, or bankruptcy, may still be able to get Mercedes financing. It may be necessary to take extra steps, such as making a big down payment or finding a co-signer with good credit.
Test driving your dream Mercedes-Benz is an exciting experience. But securing favorable financing terms requires diligent preparation and understanding the critical role your credit profile plays. With robust FICO® scores, responsible debt levels and a steady income, your chances of financing approval are quite strong.
Estimated average monthly payments for used Mercedes
| Model | Fair purchase price | Monthly payment (501-600 credit score) | Monthly payment (601-660 credit score) | Monthly payment (661-780 credit score) | Monthly payment (781-850 credit score) |
|---|---|---|---|---|---|
| 2018 Mercedes-Benz GLA | $15,538 | $279.59 | $242.19 | $212.56 | $207.61 |
| 2018 Mercedes-Benz C-Class Sedan | $20,722 | $406.68 | $352.28 | $309.18 | $301.98 |
| 2018 Mercedes-Benz E-Class | $21,373 | $422.64 | $366.10 | $321.31 | $313.83 |
| 2018 Mercedes-Benz GLC | $25,285 | $518.54 | $449.18 | $394.22 | $385.04 |
| 2018 Mercedes-Benz S-Class | $34,872 | $753.57 | $652.77 | $572.90 | $559.56 |
Bank and credit union auto loans
Shoppers who belong to a bank or credit union.
It’s worth checking with your local bank or credit union before financing a car, as they tend to offer competitive rates and terms.
Banks may offer discounted rates to account holders, and most let you apply online for an auto loan. Some banks, like Chase Bank, let you prequalify online, so you can look at your loan options without putting a hard inquiry on your credit report.
Remember that banks typically require high credit scores before granting a loan, so qualifying for financing could be tough if your credit score is low.
Credit unions typically offer more flexible financing options. If you are a credit union member, you could get lower rates than you would at a bank. Navy Federal Credit Union members, for example, can get discounted rates and longer repayment terms.
What Credit Report Does Mercedes Benz Pull? – CreditGuide360.com
FAQ
Is it hard to get Mercedes-Benz financing?
Does Mercedes-Benz Finance Bad Credit? Yes. It’s actually easy to get approved through Mercedes-Benz finance programs. Most car companies want to help their customers build or rebuild their credit by giving deals and financing programs that can only be found at Mercedes-Benz dealerships.
Which FICO score does Mercedes use?
Know Your Credit What credit does Mercedes-Benz use? Generally, Mercedes-Benz Financial Services determines loan eligibility by checking FICO® Auto Score 9, from Experian.
What does your credit have to be to get a Mercedes-Benz?
Here are the Mercedes-Benz credit score tiers: 781 – 850: Superprime. 661 – 780: Prime.
What credit score do you need for a luxury car?
What is a good credit score to buy a luxury car? A “prime” score, which is anything above 660, is usually thought to be good for buying a luxury car. However, the specific credit score requirements may vary depending on the dealership and lending institution.