When seeking a car loan, it is important to understand how lenders work because they will examine several factors before they decide to lend money, including your income and any debt you have. Your credit will also be looked at, but can you get a car loan with 665 credit score? Pearson Mazda helps you look at your options.
Getting a Loan Is Usually the Easy Part
Banks and other financial institutions want to lend money. They may make the process long or complicated, but ultimately, their goal is to give people loans. This is why you shouldn’t have trouble getting funding for your vehicle with a 665 credit score.
What to Know About the Interest on Your Loan
The area of your loan that will probably be impacted most by your credit is the interest rate. According to most credit bureaus, “Good” scores start at 670. At 665, you would be in the “Fair” category, and this means that you can expect a larger interest rate.
Setting Yourself Up for Success
There are things you can do to not only look more desirable to lenders, but to potentially lower your interest rate. This includes:
Putting Up More Initial Money
Banks want some surety that you are committed to paying for your car, and you can offer this in the form of a big down payment. Aim for 20% of the car’s total value, but go bigger if you are able to.
Using a Co-Signer
An effective way to get your interest rate lowered is to have someone with a high credit score co-sign on your loan.
Choosing a Shorter Loan Term
If you go with a short term for your loan — such as 36 or 48 months — you won’t end up paying as much in interest.
Start the MAZDA Financing Process in Richmond, VA
At Pearson Mazda in Richmond, VA, we believe everyone should be able to buy the car they want regardless of their credit score. Plus, we aim to make financing as quick and as easy as possible. If you’re ready to get started, just fill out our online application to get pre-approved.
