Average Car Loan Interest Rate for 730 Credit Score

Based on most lenders, you fall into the "good" credit area if your score is 730. This means, when you apply for a car loan, you ought to be qualified for competitive interest rates. Still, depending on the lender, loan period, and other considerations, interest rates might vary rather a lot.

With a 730 credit score  for both new and used auto loans, we will discuss what kind of average interest rates you might anticipate. We will also review some pointers on obtaining the highest possible rate.

Average Interest Rates for a 730 Credit Score

Experian's most recent data shows that average interest rates on vehicle loans in Q1 2024 were issued to credit score ranges between 661 and 780 borrowers:

New Car Loans:

• Loan good for 36 months: 5.28%
• 32% is the 48-month borrowing rate.
• Loan for 60 months: 5.39% Used Car Loans

Used Car Loans:

• Loan good for 36 months: 7.46%
• Loan worth 48 months: 7.50%
• Loan term of sixty months: 7.87%

Those with "good" credit scores about 730 are looking at average rates around 5.3-5.4% for new car loans and 7.5-7.9% for used car loans if taking a loan out for the normal 4-5 year term.

It's important to note that these are just averages. Your actual rate could be higher or lower depending on factors like:

• Your actual credit score
• The lender you selected
• The length of the loan
• Your debt now and your income
• The cost, age, mileage of the car
  

Tips for Getting the Best Rate Possible

It pays to hunt around and bargain for the lowest feasible vehicle loan rate even with a decent 730 credit score. These pointers apply here:

1. Review rates from several banks. Don't rely simply on the recommended lender of the dealership. To evaluate against the dealer's offer, get pre-approved quotations from banks, credit unions, and internet lenders.
2. Choose a less-than-loan term. Shorter 36-month loans typically have lower rates than longer loans, as the preceding samples demonstrate. A shorter term implies less interest generally but more monthly payments.
3. Arrange a bigger down payment. Lenders view lower loan-to-value ratios as less risky, hence a larger down payment helps to get a better rate.
4. Find out whether you qualify for rate savings. If you sign up for automatic payments, complete a driver's safety course, participate in partner events, or satisfy other requirements, many lenders grant rate savings.
5. Increase your credit still further. You could wish to postpone and concentrate on raising your score more if your 730 is on the lower end of the "good" level or if you have some negative items hanging on your credit for another few months.
6. Include a co-borrower or co-signer. Securing a better interest rate may depend on having someone with even better credit co-sign or split the loan.

The Bottom Line

Your credit score of 730 qualifies you for affordable interest rates on both new and used auto loans. Just be sure you shop around, compare offers, negotiate, and act to maximize your rate depending on your particular financial profile.

To find your credit score right now, phone (888) 804-0104.