If you’ve ever tried to borrow money for any reason, you’ve likely heard the terms “credit score” or “FICO score” before. It’s the number lending agencies use to determine your risk, and the higher your number, the greater the chance you’ll get a great deal when you buy a car. But, on a scale ranging from 300-850, what exactly is considered a good or bad score?
16% of Americans are considered to have “very poor” credit, which means they have a credit score that falls between 300 and 579. In this category, those seeking loans or financing of any kind may be required to pay certain fees or deposits to be approved for loans, or may not even be approved for financing at all.
17% of Americans are considered to have “fair” credit, meaning a credit score that falls between 580 and 669. Typically, those within this category are considered “subprime borrowers.” They may be less likely face outright rejection for financing, but they still should use extra caution when negotiating loan terms and interest rates.
21% of Americans have “good” credit, referring to any credit score falling between 670 and 739. Lenders are much more comfortable lending to those who have good credit, especially since studies have shown “only 8% of applicants in this score range are likely to become seriously delinquent in the future.”
25% of Americans have “very good” credit, which is to say that their credit score falls between 740 and 799. This is the category where applicants tend to see better interest rates and loan terms from lenders without heavy negotiation, meaning it literally pays to have very good credit.
21% of Americans have “exceptional” credit, which means they have managed to rise all the way to the top and secure their spot somewhere between 800 and 850. These are the people that don’t even have to try to get a loan. They have excellent credit histories and will typically get all the best deals from lenders.
Can You Get A Car With A 500 Credit Score?
Given the circumstances, those who have very poor credit, or even just fair credit, tend to be a little more apprehensive when it comes to seeking financing. However, at Suburban Auto Finance, we give those with credit scores of 500, 400, and even 300 the chance to own their own vehicle. In fact, even if you don’t have any credit at all, we’ll still work with you to ensure you’re able to get the financing you deserve – our Guaranteed Credit Approval demands it! Best of all, we take the stress out of car buying by connecting you with dealerships nearest you as soon as you’re approved so you can find the perfect used car for you. Apply Now to get your pre-approval so you can start car shopping right away!