Answered: What credit score does CarMax® use? | Join the Discussion Now (2024)
CarMax® is an auto financing company that uses the FICO® Score. It specializes in buying and selling used cars, and you don’t need to buy from CarMax if you sell your car to them. You can get your car appraised by CarMax in person at one of their outlets or online. CarMax has one of the largest inventories of used cars, making it a good option for someone looking to purchase or finance a used car.
You can get the best auto finance options with a good to excellent credit score (670 and upwards) with CarMax. Some people with bad credit have also been approved for a loan from CarMax or one of their partner lenders.
A good credit score is not the only factor CarMax looks at when deciding to approve a loan. The company also reviews your income, down payment (which is not always required), employment status, loan term, car year, and loan-to-value ratio.
CarMax conducts pre-qualifications on loan applications so you can check the rates you may qualify for with your current credit score without a hard credit check, which can pull down your score.
CarMax, Inc. is a used vehicle retailer based in the United States. It operates two business segments: CarMax Sales Operations and CarMax Auto Finance. The company began as a side business of Circuit City, opening its first location in September 1993 in Richmond, Virginia.
Car loans. A 710 credit score should look acceptable at the car lot. If you're financing a used car, though, you might pay 9.04% in interest while your neighbor with a score north of 780 pays 6.80%, according to Experian's State of the Automotive Finance Market report for the first quarter of 2024.
For pre-qualification, CarMax's finance sources use soft inquiries, which have no impact on your credit score. Pre-qualification allows you to shop for a car with your personalized financing terms. Once you're ready to buy, you'll have to submit a credit application to get specific offer terms.
CarMax® is an auto financing company that uses the FICO® Score. It specializes in buying and selling used cars, and you don't need to buy from CarMax if you sell your car to them.
Yes, it is possible to get a car loan with a credit score of 500, but it can be infinitely more challenging to find a lender willing to approve the loan.
While some dealerships look at your base FICO score, others might look at your FICO Auto Score. This industry-specific rating provides a more accurate picture of the likelihood of you repaying an auto loan instead of the likelihood of you repaying any credit obligation.
When you have bad credit – say, a credit score around 550 – getting approved for a car loan can be difficult. While you should try for a pre-approval with your bank or credit union, you more than likely are going to need a subprime lender.
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.
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