Is 666 a Good Credit Score for a Car Loan?

Getting a car loan when you have less than ideal credit can be intimidating. You may be wondering if your credit score of 666 is good enough to qualify for an auto loan. The answer is that while 666 is considered fair credit, you can likely still get approved for a car loan, albeit potentially at a higher interest rate. In this article, we’ll break down everything you need to know about getting a car loan with a 666 credit score.

What is Considered a Good Credit Score?

Most people use the FICO score, which is a model credit score that ranges from 300 to 850. In general, the higher the score the better. Here’s how FICO credit scores break down .

• 800 and above: Exceptional
• 740-799: Very good
• 670-739: Good
• 580-669: Fair
• Below 580: Poor

With a score of 666, you’re in the fair range, which is the second-worst group. You are almost there, though—670 is a good credit score. It is better to have a higher score when applying for a loan, but 666 is still good enough. There are a lot of lenders who will work with you if you have a good down payment.

What Credit Score is Needed to Buy a Car?

There is no set credit score that you must have in order to get an auto loan. When it comes to creditworthiness, each lender has their own rules. That being said, Experian says that 2066% of auto loans go to people with credit scores of 661 or higher.

With a 666 credit score, you’ll pay more in interest than someone with great credit, but you should still be able to find lenders willing to give you a loan. You can also make up for your bad credit by putting down a big down payment.

What Interest Rate Can I Expect with 666 Credit?

Your interest rate will depend on several factors, primarily your credit score and history. According to data from Experian, here are the average new and used car loan rates by credit score tier:

Credit Score Range – Average New Car Loan APR – Average Used Car Loan APR

• 781-850 – 5.18% – 6.82%
• 661-780 – 6.70% – 9.06%
• 601-660 – 9.83% – 13.74%
• 501-600 – 13.22% – 18.99%
• 300-500 – 15.81% – 21.58%

With a 666 credit score, you can expect an APR around 9-10% for a new car and 13-14% for a used car. While not ideal, those rates are still manageable. You can use an auto loan calculator to estimate your monthly payments at different rates and loan terms.

The most important thing is to shop around and compare offers from multiple lenders. Getting pre-approved can help you know what terms you qualify for before setting foot in the dealership.

Tips for Getting Approved with a 666 Credit Score

If you have fair credit, here are some tips to boost your chances of getting approved for an auto loan:

• Make a large down payment: Putting down 20% or more can make lenders see you as less risky.

• Consider a shorter loan term: Opting for a 3-year loan instead of 5-year reduces the lender’s risk.

• Bring proof of income and residency: Solid employment and housing history helps overcome credit issues.

• Get a co-signer: Adding a cosigner with good credit improves your chances. Just make sure they understand their financial obligations.

• Try your bank/credit union: Local lenders are more likely to extend financing to existing members.

• Improve your credit first: Pay down debts or get added as an authorized user to help boost your score.

Steps to Improve Your Credit Before Applying

If your score is on the low side, taking some time to improve it before applying for an auto loan can really pay off. Not only will you qualify for lower interest rates, but you’ll also likely get approved for more money. Here are some important steps:

• Pay all bills on time: Payment history is the biggest factor in your credit scores. Stay current on all accounts.

• Pay down credit card balances: High balances hurt your credit utilization ratio. Try to keep it below 30%.

• Avoid new credit applications: Too many hard inquiries in a short timeframe can ding your credit.

• Review credit reports for errors: Dispute any inaccurate information that may be dragging your score down.

• Become an authorized user: Get added to a creditworthy person’s account. Their good history can help yours.

• Open a secured credit card: Making on-time payments helps demonstrate you’re creditworthy.

With some diligence, you can improve your credit and be in a much better position when it comes time to buy a car. Don’t get discouraged if your score isn’t perfect. Do your research and explore all your financing options. With a 666 credit score, car loan approval is within your reach.