What Credit Score Does Subaru Use?
When it comes to buying a new car, one of the most important factors to consider is your credit score. Your credit score plays a significant role in determining the interest rate you will be offered on your auto loan. If you are considering purchasing a Subaru, you may be wondering what credit score they use to determine loan eligibility. Let’s explore this question and provide answers to some frequently asked questions about Subaru’s credit score requirements.
Subaru Financial Services, which provides financing options for Subaru vehicles, uses the FICO Auto Score 9 XT exclusively. This score is specifically tailored for the automotive industry and takes into account factors such as your payment history, credit utilization, length of credit history, and recent credit inquiries. It is important to note that this credit score may differ from the FICO scores used by other lenders, as it is designed to assess creditworthiness for auto loans specifically.
FAQs:
1. What is the minimum credit score required to finance a Subaru?
The minimum credit score required to finance a Subaru varies depending on the lender. However, a FICO score of 600 or above is generally considered a good starting point.
2. Can I get approved for a Subaru loan with bad credit?
While it may be more challenging to obtain financing with bad credit, Subaru Financial Services provides options for individuals with lower credit scores. It is recommended to contact a Subaru dealership or lender directly to discuss your specific situation.
3. How can I improve my credit score to qualify for a Subaru loan?
To improve your credit score, focus on making all your payments on time, reducing credit card balances, and avoiding new credit inquiries. Over time, these actions can positively impact your creditworthiness.
4. Will a Subaru dealership run a credit check before I can test drive a car?
Typically, a credit check is not required to test drive a Subaru. It is only necessary when you decide to proceed with financing a vehicle.
5. Does Subaru offer any special financing options for customers with excellent credit?
Subaru Financial Services may offer special financing rates and incentives for customers with excellent credit. It is advisable to inquire about these options when exploring loan terms.
6. Can I use a co-signer to qualify for a Subaru loan?
Yes, having a co-signer with a good credit history can improve your chances of being approved for a Subaru loan, especially if you have a lower credit score.
7. How long does it take to get approved for a Subaru loan?
The approval process can vary depending on several factors, such as the completeness of your application and the lender’s review process. In some cases, you may receive a decision within a few hours, while in others, it may take a couple of days.
In conclusion, Subaru Financial Services uses the FICO Auto Score 9 XT to assess creditworthiness for financing a Subaru vehicle. While a good credit score is beneficial, options are available for individuals with lower credit scores. It is advisable to contact a Subaru dealership or lender directly to discuss your eligibility and explore financing options tailored to your unique circumstances.