Auto loans | Shop and Finance your Next Vehicle | U.S. Bank (2024)

FAQs

What credit score do you need for a U.S. Bank auto loan? ›

Today's lowest auto financing rate

To qualify for the lowest rate, you must meet the following conditions: A term of 60 months or less. A credit score of 800 or higher.

The Bottom Line. U.S. Bank has an excellent industry reputation and offers competitive rates, especially for used cars and auto loan refinances.

If you have a lot of debt gathered from other loans or credit cards, your DTI ratio — or debt-to-income ratio — will be higher. A DTI ratio of 50 percent or higher may lead to rejection. Paying down your debts is the best way to lower your DTI, but if you're able, a second source of income can also lower your DTI.

Bank of America currently does not have a minimum approval credit score, making auto loans accessible to drivers who may not have the best credit. Although there is no minimum credit score, starting APRs will vary based on a number of factors for each driver.

Requirements to receive a personal loan

This allows them to look at your history from the past seven years and see whether you've typically made payments on time. For a $30,000 loan, you'll typically need a credit score above 600 just to qualify or above 700 to get a competitive rate.

The preapproval process for a U.S. Bank credit card doesn't require documents when accepting an offer. However, this process generally involves filling out a form with personal information like: Identification. This includes personal information and your Social Security number.

Usually we'll notify you with your loan approval status in less than a minute. If you're approved, electronic funding of your account can take between one and four days.

It's good practice to make a down payment of at least 20% on a new car (10% for used). A larger down payment can also help you nab a better interest rate. But how much a down payment should be for a car isn't black and white. If you can't afford 10% or 20%, the best down payment is the one you can afford.

Having a high debt-to-income ratio — the amount of debt on credit cards, other loans or a mortgage compared with the amount you're paid — is another possible reason for loan denial. Also, a loan application could be declined for something simple like incorrect or missing information in your application.

An auto lender considers several factors – including your credit score, your credit history, income, debts, and down payment – when deciding what interest rate to offer you. Auto lenders will generally consider a number of factors when they're determining the interest rate and loan terms to offer you.

What score do banks use for auto loans? ›

FICO® credit scores are the auto industry standard for determining a potential buyer's creditworthiness.

Your credit score is a major factor in whether you'll be approved for a car loan. Some lenders use specialized credit scores, such as a FICO Auto Score. In general, you'll need at least prime credit, meaning a credit score of 661 or up, to get a loan at a good interest rate.

Lenders want to ensure you have a near-perfect history of making payments and handling your debt before offering you no-interest financing. An excellent credit score — 781 or higher — will get you the best deal on financing, but you can still qualify for a competitive interest rate if your score is 670 or higher.

Reports indicate U.S. Bank pulls credit scores and reports from TransUnion most often, but this isn't always the case. The card issuer also sometimes pulls credit scores from Equifax and Experian.

Most used auto loans go to borrowers with minimum credit scores of at least 675. For new auto loans, most borrowers have scores of around 730. The minimum credit score needed for a new car may be around 600, but those with excellent credit often get lower rates and lower monthly payments.

In general, you'll need a FICO credit score of at least 600 to qualify for a traditional auto loan. However, the minimum credit score required with vary from lender to lender. As interest rates increase due to inflation, securing a subprime auto loan may be more difficult — but not impossible.

Car finance and credit scoring

There isn't a minimum credit score required to get car finance – it depends on the lender and the type of finance you go for.