To buy a $50,000 car and get favorable auto loan options, it’s best to have a credit score in the prime or super prime categories. Prime borrowers are those with a credit score within the 661-780 range, while super-prime borrowers fall within the 781-850 range.
The higher your credit score, the better your chances of getting a lower interest rate on your monthly installments. However, experts advise that it is always better to first shop for the best available option before settling for one auto loan. Making a down payment is another way to reduce the burden of monthly installments. Additionally, working on building your credit to reach prime or super prime levels can be beneficial. Alongside improving your credit score, it’s also advisable to focus on increasing your gross monthly income, as lenders consider your debt-to-income ratio alongside your credit score when deciding whether to approve your loan.
