{"id":1684,"date":"2019-05-04T20:30:18","date_gmt":"2019-05-05T03:30:18","guid":{"rendered":"https:\/\/blogv2prod.wpenginepowered.com\/blog\/?p=1684"},"modified":"2023-10-19T07:11:42","modified_gmt":"2023-10-19T14:11:42","slug":"credit-scores-and-car-loans","status":"publish","type":"post","link":"https:\/\/www.carparts.com\/blog\/credit-scores-and-car-loans\/","title":{"rendered":"Credit Scores and Car Loans"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<html><body><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><style>.kadence-column_7d191a-1f > .kt-inside-inner-col{border-top-width:0px;border-right-width:0px;border-bottom-width:0px;border-left-width:0px;}.kadence-column_7d191a-1f > .kt-inside-inner-col,.kadence-column_7d191a-1f > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column_7d191a-1f > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column_7d191a-1f > .kt-inside-inner-col{flex-direction:column;}.kadence-column_7d191a-1f > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column_7d191a-1f > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column_7d191a-1f{position:relative;}@media all and (max-width: 1024px){.kadence-column_7d191a-1f > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column_7d191a-1f > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column inner-column-1 kadence-column_7d191a-1f qk-look-widget\"><div class=\"kt-inside-inner-col\">\n<div class=\"wp-block-ultimate-post-row ultp-block-9ecba3  qk-main-wrap\"><div class=\"ultp-row-wrapper\"><div class=\"ultp-row-content\">\n<div class=\"wp-block-ultimate-post-column ultp-block-9b5dc4\"><div class=\"ultp-column-wrapper\"><style>.wp-block-kadence-advancedheading.kt-adv-heading_c08ec1-f8, .wp-block-kadence-advancedheading.kt-adv-heading_c08ec1-f8[data-kb-block=\"kb-adv-heading_c08ec1-f8\"]{text-align:center;font-size:20px;font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_c08ec1-f8 mark.kt-highlight, .wp-block-kadence-advancedheading.kt-adv-heading_c08ec1-f8[data-kb-block=\"kb-adv-heading_c08ec1-f8\"] mark.kt-highlight{font-family:Inter;font-weight:500;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}.wp-block-kadence-advancedheading.kt-adv-heading_c08ec1-f8 img.kb-inline-image, .wp-block-kadence-advancedheading.kt-adv-heading_c08ec1-f8[data-kb-block=\"kb-adv-heading_c08ec1-f8\"] img.kb-inline-image{width:150px;vertical-align:baseline;}<\/style>\n<div class=\"kt-adv-heading_c08ec1-f8 summary-title wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading_c08ec1-f8\"><span>Summary<\/span><\/div>\n\n\n\n<ul class=\"wp-block-list\"><li>Auto loan rates can vary significantly based on your credit standing and other financial factors. Make the most of your credit when buying a car.<\/li><li>First, check your credit report and credit score. Afterwards, leverage your credit score, using your credit standing to negotiate the best deal on a car.<\/li><li>Comparison shop to make sure you get the best rates for your loan. Try to limit your loan applications though, because too many can damage your credit score. Consider a down payment as well if your credit score isn&rsquo;t very good.<\/li><\/ul>\n<\/div><\/div>\n<\/div><\/div><\/div>\n<\/div><\/div>\n\n\n\n\n\n<p>With the average price of a new car in the $26,000 range, it makes sense to obtain an auto loan for your next car purchase. But auto loan rates can vary significantly based on your credit standing and other financial factors. A borrower with good credit may pay about 5% APR for an auto loan, while someone with bad credit could pay more than 20% APR. The following five tips can help you make the most of your credit when buying a car:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Check your credit report and credit score first<\/h2>\n\n\n\n<p>Too many car buyers wait for the dealer&rsquo;s financing office to tell them where their credit stands. Avoid financing surprises by checking your own credit report and credit score online, for free.<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.carparts.com\/blog\/wp-content\/uploads\/2019\/07\/credit-check.jpg\" alt=\"\" class=\"wp-image-2414\" width=\"1000\" height=\"667\" srcset=\"https:\/\/www.carparts.com\/blog\/wp-content\/uploads\/2019\/07\/credit-check.jpg 1000w, https:\/\/www.carparts.com\/blog\/wp-content\/uploads\/2019\/07\/credit-check-300x200.jpg 300w, https:\/\/www.carparts.com\/blog\/wp-content\/uploads\/2019\/07\/credit-check-768x512.jpg 768w, https:\/\/www.carparts.com\/blog\/wp-content\/uploads\/2019\/07\/credit-check-600x400.jpg 600w\" sizes=\"(max-width: 1000px) 100vw, 1000px\"><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Leverage your credit scores<\/h2>\n\n\n\n<p>Car buyers with great credit can use their credit standing to negotiate the best deal on a car. Car dealers understand that a borrower with excellent credit has the power to shop around.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Comparison shop<\/h2>\n\n\n\n<p>If you have decent to excellent credit, you should try shopping for an auto loan online. Online auto lenders offer rock-bottom rates to qualified applicants. If your credit is less than perfect, compare offers from credit unions, dealerships, and online lenders to find the best deal.<\/p>\n\n\n\n<div id=\"article-search-widget\">\n<div class=\"cp-search\">\n<div align=\"center\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cld.partsimg.com\/image\/upload\/w_auto,dpr_auto\/carparts\/logos\/badge_wordmark\/full_color\/CP_LOGO_COLOUR_RGB\" alt=\"CarParts.com\" width=\"300\" height=\"56\">\n<\/div>\n<form id=\"cpsearchform\" name=\"cpsearchform\" action=\"https:\/\/www.carparts.com\/search\" method=\"get\" target=\"_blank\" accept-charset=\"character_set\" aria-label=\"search CarParts.com\">\n    <input type=\"text\" class=\"keyword\" name=\"q\" placeholder=\"Search for parts on CarParts.com\" value=\"\" aria-label=\"Search CarParts.com\"><input type=\"submit\" class=\"btn-search\" value=\"Search\" aria-label=\"Search\">\n<\/form>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Limit your loan applications<\/h2>\n\n\n\n<p>While it is a good idea to compare loan offers and estimates, be careful to limit your actual applications to only a few lenders. Too many loan applications can damage your credit score.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Consider a down payment<\/h2>\n\n\n\n<p>Borrowers with credit problems can still get a great deal on a car if they are willing to fork over a down payment. Paying 10-20% of your auto price up front can help you save a bundle on your new car.<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.carparts.com\/blog\/wp-content\/uploads\/2019\/07\/car-loan-downpayment.jpg\" alt=\"\" class=\"wp-image-2415\" width=\"1000\" height=\"667\" srcset=\"https:\/\/www.carparts.com\/blog\/wp-content\/uploads\/2019\/07\/car-loan-downpayment.jpg 1000w, https:\/\/www.carparts.com\/blog\/wp-content\/uploads\/2019\/07\/car-loan-downpayment-300x200.jpg 300w, https:\/\/www.carparts.com\/blog\/wp-content\/uploads\/2019\/07\/car-loan-downpayment-768x512.jpg 768w, https:\/\/www.carparts.com\/blog\/wp-content\/uploads\/2019\/07\/car-loan-downpayment-600x400.jpg 600w\" sizes=\"(max-width: 1000px) 100vw, 1000px\"><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Understanding the impact of credit scores can make your car shopping experience go more smoothly. Start by checking your free credit report and credit score online before you buy.<\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>With the average price of a new car in the $26,000 range, it makes sense to obtain an auto loan&#8230; <a href=\"https:\/\/www.carparts.com\/blog\/credit-scores-and-car-loans\/\" rel=\"nofollow\">Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":1685,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[52],"tags":[],"ppma_author":[2607],"class_list":{"0":"post-1684","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-diy","8":"entry"},"acf":{"adrotate_specific_mobile_ad":"","adrotate_specific_desktop_ad":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Credit Scores and Car Loans - In The Garage with CarParts.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.carparts.com\/blog\/credit-scores-and-car-loans\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Credit Scores and Car Loans - In The Garage with CarParts.com\" \/>\n<meta property=\"og:description\" content=\"Reading Time:  2 minutesWith the average price of a new car in the $26,000 range, it makes sense to obtain an auto loan... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.carparts.com\/blog\/credit-scores-and-car-loans\/\" \/>\n<meta property=\"og:site_name\" content=\"In The Garage with CarParts.com\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/carpartscom\" \/>\n<meta property=\"article:published_time\" content=\"2019-05-05T03:30:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-19T14:11:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.carparts.com\/blog\/wp-content\/uploads\/2019\/07\/shutterstock_230306026.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"750\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@carpartscom\" \/>\n<meta name=\"twitter:site\" content=\"@carpartscom\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.carparts.com\\\/blog\\\/credit-scores-and-car-loans\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.carparts.com\\\/blog\\\/credit-scores-and-car-loans\\\/\"},\"author\":[{\"@type\":\"Person\",\"$id\":\"4\",\"name\":\"CarParts.com Research Team\",\"jobTitle\":\"Expert Automotive Writer\",\"description\":\"The CarParts.com Research Team is composed of experienced automotive and tech writers working with (ASE)-certified automobile technicians and automotive journalists to bring up-to-date, helpful information to car owners in the US. 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