656 Credit Score Auto Loan Interest Rates in 2021
Obtaining an auto loan might be easy for some, but more difficult for others. This is why it is important to consider which credit range you fall in and how it might affect how you qualify for a auto loan with 656 credit score. Once you know your credit rating, you can then decide what to do, where to go, and who to work with regarding the auto loan you’re in need of.
- Minimum credit score*: 550
- Term of loan: 24 to 84 months
- APR: Varies
- Must have a Social Security number
- Make $24,000+/year
- Have no open bankruptcies
You can qualify for a car loan with 656 credit score without a problem when applying. However, you can shop around a bit and find out which one is going to give the best interest rate. Since you’re not in the excellent category, you will have a higher interest rate than others that have higher interest rates get.
Fair credit scores are thought of as ideal to have when purchasing an auto. You should have a steady stream of income that can be verified for the auto loan, as well as any other information that they might need. Fair credit scores generally can go to just about any bank and request an auto loan, providing the necessary documents and are able to obtain the loan.
|FICO Credit Score||APR*|
Interest rate on car loan with 656 credit score can go anywhere from 8% to 12%, but it also depends on the lender and the specific background credit history that the person has that will determine what the interest rate is going to be. Even those with fair credit scores are encouraged to put down money over the cost of the auto loan they’re trying to take out, as not only will this save them money, but it can show that they’re reliable when trying to purchase a vehicle.
All the calculation and examples below are just an estimation*.
Individuals with a 656 FICO credit score pay a normal 9.4% interest rate for a 60-month new auto loan beginning in August 2017, while individuals with low FICO scores (500-589) were charged 14.8% in interest over a similar term.
So, if a vehicle is going for $18,000, it will cost individuals with poor credit $377 a month for a sum of $22628 for more than five years at 9.4% interest. In the meantime, somebody with a lower credit score paying 14.8% interest rate without an upfront installment will spend $426 a month and wind up burning through $25584 for a similar auto. That is in excess of a $2956 distinction.
The vast majority won’t fall in the highest or lowest class, so here’s a breakdown of how an extensive variety of FICO scores can influence the aggregate sum paid through the span of a five-year loan:
|FICO Range||APR* (AnnualPayment Rate)||Monthly Payment*||Total Interest Paid*||Total Cost*|