A review of the best auto loan rates for new, used & refinanced vehicles based on credit scores between 620 to 629.
Your FICO credit score will have a big factor in the event that you want to acquire the best interest rates for a car loan in 2019. As reported by the Huffington Post approximately ten percent of Us residents have a credit score rating anywhere between 620 and 629.
Credit scores in that range are classified as ‘Fair’ or ‘Non-Prime’.
Even so, bear in mind a credit ranking around 623, you’re going to have a great deal of loan possibilities, at a fairly higher rate of interest than a score nearer to 675.
Keep reading because we are going to unveil the best auto loan rates if you’re looking to purchase a new car, pre-owned vehicle, or to finance a preexisting automobile loan.
Along with discussing the disadvantages and advantages of using a Bank, Credit Union, or an Online Lender.
With a 620 credit score there still is a lot of room for improvement and even more financial incentives for you to improve it.
Disclaimer: “Credit score” refers to the FICO score in this article. If you have a different score (i.e. VantageScore), that does not likely equal your FICO. For example, a 645 VantageScore could equal any FICO score… 643, 644, 645? Who knows? You can get your FICO score here.
Current Auto Loan Interest Rates
|Dates||60-month new car||48-month new car||36-month used car|
Note: Actual interest rates are based on many factors such as state, down payment, and verification of credit score. Car loan interest rates provided by Bankrate.
Best Automobile Loan Rates For A New Car – 620 to 629 Credit Score
Look, let’s be honest.
You are going to see advertisements for new car auto loan rates for as low as 1% or 2%.
But, if we are being honest, those rates are for people with credit scores in the 800’s, not for people with a credit score closer to 625.
Those super low rate advertisements are the classic bait and switch, a type of deceptive advertising that will end up costing you way more money.
Below we will provide you with an accurate estimate of what your monthly payments could be based on the amount you will need to borrow to purchase that new car.
These estimates are for the best interest rates available for someone with a credit score around 626.
Lenders charge higher interest rates for loans to people who statistically are a bigger credit risk.
Your credit score is used to assess that risk.
The Consumer Financial Protection Bureau (CFPB) is a government agency that has oversight over the big three credit agencies, Equifax, Experian, and TransUnion.
In a recent case study, the CFPB found that the default risk for people with a credit score between 620 to 629 is 19%.
In comparison, consumers with credit scores of 800 and above default on their loan obligations less than 1% of the time.
The sample auto loan monthly payment charts include the best rates for non-prime or fair credit borrowers with credit scores in the low 620’s, such as 621, 626, & 627.
Estimated Monthly Payments For New Car Loan Of $20,000 by Credit Score
|Credit Score||3 Year |
|5 Year |
|7 Year |
*Sample Quote For Credit Scores of 620 to 629. Single digit credit score changes don’t change the payment, so a 624, 625, and 628 score should all cost the same. Assumes $2,000 down payment. Scores sourced from Nerd Wallet site and are accurate as of 6/12/19. All loan payment amounts are based on a new car loan APR interest rate of 7.52% for non-prime borrowers with a credit score of 600 to 660. The loan terms included in this chart are for 3 years (36 months), 5 years (60 months), and 7 years (84 months). However, speak to your lender about additional loan options for new, used, or refinancing. Don’t forget to ask about their auto loan payment terms that cover; 1 year (12 months), 2 years (24 months), 4 years (48 months), 6 years (72 months), 8 years (96 months), 9 years (108 months), and 10 years (120 months). This is not an offer for a loan or a loan approval. Rates and stipulations change by state, income, credit score, and a variety of other factors. For informational purposes only.
Estimated Monthly Payments for Other New Car Loan Amounts (10k – 30k)
|New Auto Loan Amount||3 Year |
|5 Year |
|7 Year |
Sample Quote For Credit Scores Of 620, 621, to 626, & 628: Assumes $2,000 down payment. Scores sourced from Nerd Wallet site and are accurate as of 6/12/19. All loan payment amounts are based on a new car loan APR interest rate of 7.52% for non prime borrowers with a credit score of 600 to 660. The loan terms included in this chart are for 3 years (36 months), 5 years (60 months), and 7 years (84 months). However, speak to your lender about additional loan options for new, used, or refinancing. Don’t forget to ask about their car loan payment terms that cover; 1 year (12 months), 2 years (24 months), 4 years (48 months), 6 years (72 months), 8 years (96 months), 9 years (108 months), and 10 years (120 months). This is not an offer for a loan or a loan approval. Rates and stipulations change by state, income, credit score, and a variety of other factors. For informational purposes only.
Top Used Auto Rates – 620 to 629 Credit Score
I think a lot of people wonder what a good interest rate is on a used car?
We see incredible offers online and on TV for new car loan rates but, now that I think about it, I don’t think I ever see used auto rates advertised.
Used car loan rates are usually heavily determined by your credit score.
Higher credit scores in the 825’s will qualify for the lowest interest rate loans.
You don’t have to have a good credit score to get the best auto loan rates.
An Illinois government-commissioned report found residents in Riverdale, a suburb of Chicago, have a fair credit score average of 625, but still qualify for multiple used automobile loan options.
While we can help you get the best car and truck loan rates for a used car, we cannot help you choose the perfect vehicle.
Since you have a credit score around 625 or 626, buying a used car makes a lot more sense from a financial standpoint.
⚠️ Be Careful!
Buying a used car has its risks. That’s why you want to always check the vehicle’s history. You can run a vehicle history report on sites like Carfax with the vehicles Vin number. If the dealer or seller will not give you the Vin #, consider this a major red flag and move on to another vehicle.
You will most likely pay less interest over the term of your loan because used vehicles tend to be less expensive than new ones.
But, that is only the case if you purchase a good used car.
Keep in mind that if the dealer or seller will not give you the Vin #, consider this a major red flag and move on to another vehicle.
If your credit score is in the 620’s, you should qualify for a non-prime APR rate, which will be higher than someone with a 700 or 800 credit score.
|Used Auto Loan Amount||3 Year |
|5 Year |
|7 Year |
Sample Quote For Credit Scores Of 621, 624, to 626, & 627: Assumes $2,000 down payment. Scores sourced from Nerd Wallet site and are accurate as of 6/12/19. All loan payment amounts are based on a used car loan APR interest rate of 10.34% for non prime borrowers with a credit score of 600 to 660. The loan terms included in this chart are for 3 years (36 months), 5 years (60 months), and 7 years (84 months). However, speak to your lender about additional loan options, including mortgage loan terms that cover; 1 year (12 months), 2 years (24 months), 4 years (48 months), 6 years (72 months), 8 years (96 months), 9 years (108 months), and 10 years (120 months). This is not an offer for a loan or a loan approval. Rates and stipulations change by state, income, credit score, and a variety of other factors. For informational purposes only.
Best Vehicle Refinance Rates
Say you have a credit score of 623 or 628…
You can refinance with this score!
A lot of people miss out on an opportunity to save themselves some money by not considering auto refinancing with a credit score over 600.
The interest rate you initially locked in at the time you purchased your car was based on your credit score at that time and the Federal prime interest rate.
Do not apply for a refinance car loan if your credit score is below 600.
If either of those two factors has changed in your favor, you may be able to refinance with a lower interest rate and save a bunch of money and interest by replacing your old high-interest rate loan.
Depending on the APR of your original loan, you may also be able to keep the original loan payment amount, but cut multiple months or even a year off of the length of time you will have to pay off your loan.
Keep in mind that if your credit score is 600 or below, you probably will not be able to find a better interest rate by refinancing and the new loan will cost you more in interest than the original one.
Please note that while we’re talking about some specific credit scores over 620 in this article, single digits shouldn’t impact your refinance decision. In other words, whether your score is 623 or 624, or even on the higher end of our range like 628, your resulting rates will likely be very similar, and you should definitely consider auto loan refinancing.
|Refinance Auto Loan Amount||2 Year |
|4 Year |
|6 Year |
Sample Quote For Credit Scores Of 620, 624, to 625, & 627: Assumes no down payment. Scores sourced from MyAutoLoan.com and are accurate as of 6/12/19. All loan payment amounts are based on a refinance car loan with an APR interest rate of 3.09% for non prime borrowers with a credit score of 620 to 699. The loan terms included in this chart are for 2 years (24 months), 4 years (48 months), 6 years (72 months). However, speak to your lender about additional refinancing loan options, including loan terms that cover; 1 year (12 months), 3 years (36 months), 5 years (60 months), and 7 years (84 months), 8 years (96 months), 9 years (108 months), and 10 years (120 months). This is not an offer for a loan or a loan approval. Rates and stipulations change by state, income, credit score, and a variety of other factors. For informational purposes only.
Who Has the Best Auto Loan Rates? Credit Unions, Banks, or Online Lenders
Attempting to make sense of who has the best automobile rates can be a confusing task.
When you are thinking about getting an auto loan, it is normal to think of your Credit Union or Bank.
I feel a sort of devotion to my daily bank that I trust with all of my hard earned money.
In certain situations, going directly through your Credit Union or Bank can be your most logical option and probably even save you a few dollars.
But, … Did you know?
Credit Unions and Banks have a limited number of loan options they can offer and some find it difficult to match the best online lenders rates.
Another advantage of online lenders is that you don’t have to go to the financial institution and wait in line to talk to the loan officer.
Or, you can get four offers inside of two minutes by filling out a short, one-page application with MyAutoLoan.com.
It makes sense that you feel more comfortable speaking with your Bank or Credit Union about an auto loan.
But doesn’t it make more sense to have four free auto loan offers in your hand when you go to speak to them?
You will be more informed of what is available to you and possibly even use those offers to negotiate a better deal with your Bank or Credit Union.
⚠️ Be Careful!
Be careful if you get an auto loan from a Credit Union or Bank that you have a checking, savings, or CD account with. Some financial institutions require you to sign a document allowing them to take payment without your permission if you do not pay.
If your financial institution can’t beat one of the offers from MyAutoLoan.com then you consider them.
Here’s the deal about MyAutoLoan.com…
They provide you with four loan offers in under 2 minutes for filling out a quick, free, no-obligation application.
It is very common to obtain a pre-approval auto loan before choosing your car.
In fact, you are able to get the best rates possible because you can shop around and find the best deal before even looking for the car.
Best Auto Loan Lenders in 2021
Compare multiple auto lenders at one time, pick the best option, and get approved for your loan.
If you already have found the car you won’t have the time to find the best rates.
Classic putting the cart before the horse move!
Always get pre-approved for your auto loan to get the best rates.
In fact, according to U.S. News:
“Having the entire car-buying process neatly bundled into one transaction…makes purchasing easy. However, it’s a horrible way to buy a car if you want to get a good deal. It’s a common dealer trick to keep you focused solely on the monthly payment while they manipulate the trade-in value, vehicle price, and car loan terms. In most cases, they make a significant portion of their profit on the sale by marking up the cost of the car loans you are offered.”
4 Non-Credit Factors that Affect Your Monthly Payment
Multiple factors play a role in determining a good auto rate for new, used and refinance loans.
Even if you have a credit score of 628, these five non-credit score related factors will have an affect on your monthly car or truck payment.
1. Income & Debt-to-Income
Lenders will want to make sure that you have enough money to pay your vehicle loan each month.
To determine this, they look at how much income you make each month and how much are your expenses.
They used the word, debt, instead of expenses, and call the combination of the two, your debt-to-income ratio.
Most lenders like to see your debt-to-income (DTI) around 40% including your new monthly auto payment.
3 Steps To Calculate Debt-To-Income Ratio
- Add up all of your monthly bills including rent, car payments, student loans, utilities, etc.
- Divide your total monthly bills by your total monthly income
- The resulting number is your debt-to-income ratio
👉 For example:
If I have $5,000 in monthly income and $2,000 in monthly expenses and I divided the monthly expenses 2k by monthly income 5k, I would have a 40% DTI.
➗ You can use our debt-to-income ratio calculator to find your DTI.
2. The “Right” Credit Score
I’m assuming you think that you have a FICO credit score in the 620 to 629 range.
You may have a credit score of 623 but it may not be a FICO score and your true credit score could be much higher!
A while back, the three big credit agencies; Experian, TransUnion, and Equifax, joined forces (think of the Empire in Star Wars) created a new credit scoring model they called VantageScore.
There credit scoring model doesn’t produce the same results as the FICO model because it is newer and weighs consumer’s credit histories a bit differently.
But, here’s the thing…
Most lender’s don’t use a Vantage credit score when determining the best rates for an auto loan.
They used the FICO credit scoring model, in fact, over 90% of lenders use FICO to obtain your credit score and determine your interest rate.
However, most FREE CREDIT SCORES are VantageScores.
So, if you think you have a credit score around 625, you may actually have a FICO credit score of 675, who knows?
The only way you would know is to go to MyFICO and get your FICO credit scores for Experian, Equifax, and TransUnion.
It could save you thousands of dollars in a lower interest rate loan!
Lenders want to loan money to people with steady incomes.
The most common way borrowers show that they have a consistent income is by the length of time they have been employed at one location.
People who jump from job to job regularly, have not been able to rely on one specific jobs income for a long period of time and therefore, by definition, do not have a steady income.
4. Down Payment
When you purchase a new or used car or truck you are going to have to make a down payment.
It doesn’t matter whether you have a 775 credit score or a 627.
Lenders want to make sure that you have some skin in the game and generally require you to make a 20% down payment on the purchase of a new car.
Used vehicles don’t depreciate their value as fast as a new automobile and because of this, lenders usually only ask consumers to make a 10% down payment on a used car.
However, if you have a trade in you can apply the value of the vehicle you are trading in to the down payment.
If you are looking to refinance your vehicle than you lucked out because lenders do not typically ask for a down payment.
Ways to Reduce Your Auto Loan Interest Rate
With a credit score between 620 and 629, you are going to qualify for non-prime loans at a much higher interest rate than if you were able to increase your credit score to 700+.
Because you are so close to receiving prime credit score rates it may make sense to consider spending 30, 60, or 90 days building your credit.
The time and money spent would put you in a lower risk bracket and open the doors to much more financial freedom and better opportunities.
You can start by checking out our 90 day Credit Sprint for a personalized credit building plan. I know it works because I personally increased my credit score over 100 points in under 60 days.
Another option to get a vehicle loan with a lower interest rate would be to ask a family member to co-sign on the loan.
The co-signer would become the primary borrower and you would be the secondary borrower.
They would be responsible for making the payments on the loan if you failed to do so, but you would qualify for an auto loan based on their credit score and not yours.
If you know someone with a good credit score, it may not hurt to ask them to be your co-signer.
Disclaimers: Annual Percentage Rates (APR), loan term, and monthly payments are estimated based on analysis of information provided by you, data provided by lenders, and publicly available information. All loan information is presented without warranty, and the estimated APR and other terms are not binding in any way. Lenders provide loans with a range of APRs depending on borrowers’ credit and other factors. Keep in mind that only borrowers with excellent credit will qualify for the lowest rate available. Your actual APR will depend on factors like credit score, requested loan amount, loan term, and credit history. All loans are subject to credit review and approval. Discrimination based on gender is absolutely forbidden. Whether the loan is for her or for him, you should receive the same terms.