I want to buy a new car but my credit score is only 680. Is this good enough?

Question

I also have on my credit report a few old debts and one judgment which is already paid and have a student loan on good stading.I will pay all of my old debts before trying to apply for a car loan. The good thing is that I worked for a good company for the past 2 years and only have a one credit card with a good history.

Answer 1

Once again people think that score is everything, it is not. 680 is a average score.

Score is made up of the following:

1. Payment history 35%
2. Time in bureau 15%
3. New credit 10%
4. Type of credit used 10%
5. Debt to income ratio 30%

I have been in the vehicle finance business for over 7-years and have seen several people with scores over 700 that could not finance a vehicle because their score was based on a credit card with a $500.00 balance paid 20-times as agrred and a couple of student loans with nothing that would qualify them to purchase a vehicle.

Banks look at several things how much are you trying to borrow in relationship to what the vehicle books for in N.A.D.A., how long are you trying to borrow the money for, how much are you putting down, how many miles are on the vehicle, how old is the vehicle, how long have you been on your job, how much do you make a month, how long have you been at your residence and do you budget for the vehicle you are trying to buy.

As you can see, there are several things that enter into the banks decision that are much more important than score.

I really wish that people that do not know what they are talking about would stop trying to answer these type of questions.

Answer 2

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Answer 3

680 Credit Score Auto Loan

Answer 4

Car loans can be a stinker, let me tell ya!!! What would really help here is to know how much your income is to determine you debt to income ratio. Also, whats wrong with the car you are currently driving? How much downpayment will you pay? Do you have a savings account? Credit score is not the only thing that comes into play when buying a house. Other things are if you have at least 5% of the downpayment, your debt to income ration, proof of employment for 2 yrs. Do the math, find out how much downpayment you will need. How much you can save before and after a car loan. Also remember insurance on new cars is ridiculously high so get a few quotes. There is no sense in having an improved credit score only to be struggling to save for a house or an emergency.

Answer 5

680 is pretty good and you should be able to qualify for a loan. You'll likely pay higher interest rates than someone with a score over 740 or so.

Get those old debts paid off as soon as possible and it will likely raise your score a bit and hopefully you'll qualify for a lower rate. It takes a couple months for them to show up on your report though so you need to pay everything off a soon as you can.

Here's a pretty good website that explains how points get added or subtracted to your score.

The student loan is already at a low interest rate and since you're in good standing with them, I'd leave that one alone for now and just keep making the payments.

Answer 6

Dealers(which I'am) pull all three credit bureaus to find the highest credit score. Most importantly, dealers pull an auto enhanced credit bureau that better reflects the risk to auto lenders. If you have a 680 score, with a minimum of 3 trade lines(individual credit accts), you will definately qualify for an auto loan. Banks on the otherhand, will base what you can afford by your income(in most cases 15% of your gross income), but on a 680, they will allow 20%, Nonetheless, go get yourself a new car and make sure you do your homework. Go to Kelleybluebook.com if you need any help with values on the cars of your choice. I hope this helps and Good Luck!
P.S.- Try Nissan- They are awesome rigs

Answer 7

680 is a decent score though not a great score. If your debt to income ratio is OK and you have enough funds to make the payments you shouldn't have any major problems. You won't get the best rates available but it shouldn't be too bad. You generally need to crack 720 to get the best possible rates.

Answer 8

680 is great. Paying all your debts wont matter unless your debt to income ratio is too high. You will be fine and should qualify for a nice interest rate. I have been selling cars for years and have been in management and finance so I know what I'm talking about. Let me know if someone gives you the run-around. BTW, what type of car you looking to buy?

Answer 9

You can almost always get a loan, but the interest rate may be higher than if your score was, say 750. Start with your bank or credit union. They may have better rates than the dealer.

Answer 10

You are aware that individuals w/ cars for sale & ALL reputable car dealers will take CASH, right?

I know, you don't have any, huh? That is yet another reason why you shouldn't borrow for a dumb car. You know a new car will lose about 40% of its value before it is even 5 yrs old. Most of them lose 5-10% just b/c they were driven off the lot! I strongly urge you to go to the website below or get a copy of the book. I read the booka few years ago & listen to the podcasts. Following the teachings has revolutionized my financial life. DH & I have paid off TONS of debt, we have a functional budget, we have money for emergencies & major purchases & we NEVER borrow a dime for anything - NEVER! I am certain that you can do it, too. We have so much peace around the subject of money. There are no overdrafts, arguments about spending, worries about how to pay medical deductibles. I sincerely hope you will find the peace that we have found.