How Credit Scores Affect APR

Annual percentage rate (APR) is the cost you pay each year for financing – it includes finance charges, fees, and other charges. Because financial institutions use credit scores to make sure you’re able to repay a debt, creditors usually check your credit before quoting you an APR. The better the credit score, the more favorable APR you may receive.

FICO SCORE

Credit Score
Average Rate for New Cars
Average Rate for All Pre-Owned Cars

781 – 850
2.65%
3.80%

661 – 780
3.69%
5.59%

601 – 660
6.64%
10.13%

501 – 600
10.58%
16.56%

300 – 500
14.20%
20.30%

Credit score ranges and corresponding APRs were provided by Experian Information Solutions, Inc. and are from the Q4 2020 State of the Automotive Finance Market. These ranges should only be used as a guideline for your estimated APR. We recommend getting your credit score on your own before shopping for a vehicle.