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A 727 credit score falls right in the middle of the “good” credit range. But what does that mean when it comes to buying a car? Can you get approved for an auto loan with a 727 credit score? And if so, what kind of terms can you expect?
This article will break down everything you need to know about buying a car with a 727 credit score. We’ll cover:
- What a 727 credit score means
- Likelihood of getting approved for a car loan
- Interest rates to expect
- Tips for getting the best deal
- How to improve your credit before buying
What Does a 727 Credit Score Mean?
First, let’s look at what a 727 credit score signifies to lenders The most commonly used credit scoring model is the FICO score, which ranges from 300 to 850 According to FICO, a 727 falls into the “good” credit category, which is 700-749.
In general, a 727 credit score tells lenders that you have a good, but not excellent, credit history. You likely pay your bills on time most of the time, but may have some late payments or other negative marks dragging your score down
A 727 credit score is considered an average or medium score by most lenders. It’s not bad, but there’s still room for improvement if you want to qualify for the very best rates and terms.
Can I Get Approved for an Auto Loan with a 727 Credit Score?
The good news is that yes, you can almost certainly get approved for an auto loan with a 727 credit score. According to credit bureau Experian, the average credit score for a used car loan is currently 684. So at 727, you’re well above that threshold.
For a new car loan, the average credit score is a bit higher at 756. But again, with a score of 727 you should be able to qualify without too much trouble.
That said, while a 727 credit score makes approval likely, it doesn’t guarantee you’ll get approved by every lender. Some lenders may want to see a higher score.
And even if you do get approved, the interest rate and loan terms you’re offered can vary a lot depending on the lender. So it pays to shop around. More on that later.
What Kind of Interest Rate Can I Expect with a 727 Credit Score?
While a 727 credit score will probably get you approved, it likely won’t get you the rock-bottom interest rates reserved for those with excellent credit.
According to Experian data, here are the average used car loan rates for different credit score tiers:
- 781-850 (Super Prime): 6.82% APR
- 661-780 (Prime): 9.06% APR
- 601-660 (Non-Prime): 13.74% APR
- 501-600 (Subprime): 18.99% APR
With a score of 727, you would likely fall into the Prime borrower range and qualify for an average rate around 9% APR. However, interest rates can vary significantly based on the lender, so it pays to shop around.
For example, getting quotes from an online lender, your bank, and the dealer financing department could result in quite different rate offers. Comparing all your options side-by-side will help ensure you get the best deal.
Tips for Getting the Best Auto Loan Deal with a 727 Credit Score
Here are a few tips to make sure you maximize your chances of getting the best possible deal on your auto loan:
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Get pre-approved before shopping: Having a pre-approval letter in hand shows dealers you’re a serious buyer and can give you negotiating leverage.
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Compare quotes from multiple lenders: Don’t just go with the first loan offer you receive. Shop around to find the most competitive rate.
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Ask about discounts: Many lenders offer discounts for setting up autopay, having an account with them, buying additional products, or taking a shorter loan term.
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Make a larger down payment: The more you can put down, the better your chances of securing a lower interest rate.
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Consider a shorter loan term: Opting for a 3-year loan instead of 5 years will mean higher monthly payments but much less interest paid over the life of the loan.
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Improve your credit first: There are steps you can take to boost your score before applying for a car loan, which we’ll cover next.
How Can I Improve My Credit Score Before Buying a Car?
If you have time before you need to buy a car, here are some tips for improving your credit score:
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Pay down credit card balances: This will lower your credit utilization ratio, which makes up 30% of your FICO score.
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Make on-time payments: Set up autopay if you tend to forget due dates. Payment history is another big factor in your score.
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Limit new credit applications: Too many hard inquiries in a short period can ding your score.
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Correct errors on your credit reports: Dispute and remove any inaccurate negative information dragging your score down.
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Become an authorized user: Ask a family member with good credit to add you to one of their longstanding accounts.
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Wait for negative marks to fade: Collection accounts and late payments hurt less as they age.
Checking your credit reports regularly and addressing any issues that arise can help you maintain the healthiest score possible before applying for a major loan like an auto loan.
The Bottom Line
While buying a car with a 727 credit score is certainly doable, you’ll likely get better loan terms if you can push your score higher first. That said, following the tips above can help ensure you get the best auto financing deal possible even if your credit score stays put for now.
The most important things are to shop around for the lowest interest rate, make a substantial down payment if possible, and look for opportunities to improve your credit before applying. Do those things, and your 727 credit score shouldn’t stop you from driving home your next new car.
What credit score is needed to buy a car?
The average credit score was 748 for a new car and 684 for a used car, according to data from Experian.
There is no official minimum credit score required to buy a car, but most lenders have minimum standards for financing. Your credit score demonstrates your likelihood of repaying a loan, which is why it is one of the main tools lenders use when determining if you qualify for a car loan. Generally speaking, the higher your credit score, the more likely you are to be approved for an auto loan and receive a competitive interest rate.
This table illustrates loan risk distribution, which is the percentage of people in each credit band auto lenders chose to finance. You are much more likely to be approved for an auto loan with a score of 600 or above because lenders have low risk tolerance for borrowers.
| New car financing | Used car financing | All car financing | |
|---|---|---|---|
| Super prime (781-850) | 47.44% | 22.34% | 30.75% |
| Prime (661-780) | 35.62% | 35.26% | 35.38% |
| Nonprime (601-660) | 10.87% | 18.35% | 15.84% |
| Subprime (501-600) | 5.61% | 20.69% | 15.64% |
| Deep subprime (300-500) | 0.46% | 3.36% | 2.39% |
Those with credit scores under 500 accounted for just 2.39 percent of all auto loans in the first quarter of 2025. Scores between 501 and 660 fared better and accounted for over 30 percent of auto loan originations.
Do auto loans use FICO or VantageScore?
Lenders may use both your FICO score and VantageScore to determine your eligibility for an auto loan. Some lenders may also use your FICO Auto Score, which is focused specifically on your ability to pay back debts, and these scores range from 250 to 900. Lightbulb Icon Bankrate tip
It is possible for lenders to use a different type of credit scoring metric. If you are unsure, reach out to your prospective lender to determine what measure will be used.
Credit Scores for Buying a Car: Current Tiered Rates & Scores (Former Dealer Explains)
FAQ
Can I buy a car with a 727 credit score?
Still, you typically need a good credit score of 661 or higher to qualify for an auto loan.Mar 18, 2025
What credit score is needed for a $30,000 car loan?
What can you do with a 727 credit score?
A FICO® Score of 727 provides access to a broad array of loans and credit card products, but increasing your score can increase your odds of approval for an even greater number, at more affordable lending terms.
What loan can I get with a 727 credit score?
You can get a personal loan with an 727 credit score, but not every lender may approve you. Some lenders require scores well into the 700s for consideration. However, depending on the lender, you may get a personal loan with rather competitive terms.