Average Car Loan Interest Rate for 730 Credit Score


If you have a credit score of 730, you fall into the "good" credit range according to most lenders. This means you should be able to qualify for competitive interest rates when taking out a car loan. However, interest rates can still vary quite a bit depending on the lender, the term of the loan, and other factors.

In this, we'll explore what kind of average interest rates you can expect with a 730 credit score for new and used auto loans. We'll also look at some tips for getting the best possible rate.

Average Interest Rates for a 730 Credit Score

According to the latest data from Experian, borrowers with credit scores between 661 and 780 were offered the following average interest rates on auto loans in Q1 2024:

New Car Loans:

36-month loan: 5.28%
48-month loan: 5.32%
60-month loan: 5.39%
Used Car Loans:

36-month loan: 7.46%
48-month loan: 7.50%
60-month loan: 7.87%
As you can see, those with "good" credit scores around 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 typical 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 exact credit score
  • The lender you choose
  • The loan term
  • Your income and existing debt
  • The car's price, age, and mileage

Tips for Getting the Best Rate Possible

Even with a good 730 credit score, it pays to shop around and negotiate for the lowest possible auto loan rate. Here are some tips:

1. Check rates from different lenders Don't just go with the dealership's preferred lender. Get pre-approved quotes from banks, credit unions, and online lenders to compare against the dealer's offer.

2. Opt for a shorter loan term The examples above show that shorter 36-month loans tend to have lower rates than longer loans. A shorter term means paying more per month but less interest overall.

3. Put down a larger down payment Lenders see lower loan-to-value ratios as less risky, so a bigger down payment can help score a lower rate.

4. See if you qualify for rate discounts Many lenders offer rate discounts if you sign up for automatic payments, take a driver's safety course, are a member of partner organizations, or meet other criteria.

5. Build your credit further If your 730 score is on the lower end of the "good" range, or you have some negative items staying on your credit for another few months, you may want to delay and work on improving your score more.

6. Add a co-signer or co-borrower Having someone with even better credit co-sign or share the loan can help secure a better interest rate.

The Bottom Line

With a credit score of 730, you're in a good position to qualify for competitive interest rates on new and used auto loans. Just be sure to shop around, compare offers, negotiate, and take steps to maximize your rate based on your specific financial profile.

Call on (888) 804-0104 to know your credit score now!