When buying a new car, there are three main factors that will determine your monthly payments: how much money you put down (or trade in), how long of a term you decide upon and your credit score. Since the rate that you are offered will likely be based on your FICO® score, you should take some time to consider just how much money your FICO score will cost you (or save you) each month. Take a look at the chart below to see how your monthly car payments will vary depending on your score:
Interest rates accurate as of May 24, 2013.
Knowing your score helps you make the best decision when shopping for a car.
myFICO recommends that you call a few auto lenders and ask them what your FICO® score needs to be to get their best rates. You can then compare your score to the score you need to get the best rates. You can check your current FICO score from TransUnion or Equifax with FICO® Standard. FICO Standard provides your FICO score as well as your credit report so you can see the factors causing your score to be where it's at.
"When I found the right car and a good price to buy, I was laughing at the auto dealer's Finance Manager when he tried to finance my car loan at a high interest rate. I knew, that with my good FICO score that I could find many banks that would love to give me a loan with a much lower interest rate than the dealer..... and I did!"
With FICO® Standard you get:
Your FICO® score from your choice of Equifax or TransUnion. You'll get a full explanation of your FICO score as well as factors causing your score to be what it is. FICO Standard also provides you with a view of how lenders see your specific FICO score when making lending decisions.
Your credit report from your choice of Equifax or TransUnion. Each credit report contains information on your credit accounts, a listing of those companies accessing your credit file and more. We'll also flag any accounts that are hurting your FICO® score.
The FICO® score simulator which analyzes your personal credit information and can help you understand the impact of any of your future actions such as paying off a credit card or opening a new account.