What is good credit score to buy your dream car in 2025? This is how to make it happen with Hubmee

If you have a goal of buying a new car in 2025, extra financing could be an option to consider. Whether you take a loan from a bank or a car dealership, your credit score will be a crucial factor that determines your interest rate. If one institution doesn’t offer favorable terms, others might provide options, often at higher interest rates to make their profit.

When you go to car dealerships seeking to purchase a car, they look at a list of factors while assessing your financial behavior. One of the major factors they assess is your credit report and credit score.

There are two most common bases car dealerships use to check your credit score. These are FICO Auto Score and Vantage Score models.

What is the difference between FICO and Vantage Score?

FICO and Vantage Score are two models widely used in the US to assess creditworthiness. Both models are similar in their functionality, but have certain differences. Pay attention to the fact that when you come to the dealer shop to buy a car, your credit score may be evaluated differently. Depending on which model this dealer shop uses for checking your credit behaviour. 

Here we have an approximate examples how your credit score will be evaluated by 2 models:

💡Tip: Check your score using the same model dealerships rely on to find the best deal for you. Online Calculator for FICO and for VANTAGE.

When considering a loan to purchase a car, even a small difference in the interest rate can have a significant impact on your budget. It might seem like just 2%, but in reality, it can add thousands of dollars to the total cost of your vehicle. 

Let’s break it down with some numbers to show you just how important your credit score is when taking a loan.

Loan Details:

• Loan Amount: $47,000

• Loan Term: 5 years

Comparison of Interest Rates:

At a 10% interest rate (FICO):

• Monthly Payment: $998.61

• Total Cost: $998.61 × 60 = $59,916.67

At a 12% interest rate (VantageScore):

• Monthly Payment: $1,045.49

• Total Cost: $1,045.49 × 60 = $62,729.34

Difference:

$62,729.34 − $59,916.67 = $2,812.68 more

A small 2% difference in the interest rate can cost you an additional $2,812.68 over the loan term for a $47,000 car. This demonstrates how your credit score plays a crucial role in saving money on loans.

What should I do if I have a low credit score?

If you have a low credit rating and want to buy a car, you have several options:

1. Choose Banks or Lenders with offers for low credit score: For people that have low credit scores some auto dealers have special offers. It may be programs that take into account your current financial situation, not just your credit history. Here are some examples: 

• Carvana Auto Loan

• Capital One, Auto Finance

• CarMax Auto Loan

• Autopay Car Loan

2. Find a Co-signer: If you know a person with a good credit rating, they can become your co-signer. This will give the lender additional confidence that the loan will be repaid, and you may be offered better terms at the rate.

3. Pay more at the beginning: If you are able to make a large down payment, the bank is more likely to give you a loan because you can show your ability to pay.

4. Find auto dealers that offer test drive vehicles at lower prices: Test drive vehicles are often sold at a lower price. You have the opportunity to purchase a car in excellent condition for less money. This can reduce the amount you need to borrow, making your loan terms more manageable and potentially improving your chances of approval.

💡Tip: Having a good credit score  may be simpler than you think. You just need to put in order all your bank accounts, assets, documents and bills. Hopefully, you can simply do it in one app, we will tell you below.

What is Hubmee and how It help to increase credit score?

What is Hubmee?

Hubmee is an all-in-one personal management app, designed to simplify your life by organizing your finances, documents, and daily tasks. It’s like having a digital assistant that helps you to track everything, from bill payments and subscriptions to insurance renewals and budgeting.

How it can help to increase credit score ?

Credit Score consist of following factors:

Hubmee help you cover at least 65% of your credit score. Let’s see how:

1. Payment History: Most important part of your credit score, it takes 35% of all other components. If you pay off everything on time, have no late fees, no late debts, it shows that you are a reliable client to get a loan with a good interest rate. Hubmee combines all your bank accounts, documents and bills in one place. 

2. Amounts Owed: The amount you owe affects about 30% of your credit score. With Hubmee you don’t need to track each bank account separately, you just need to link it to Hubmee via worldwide trusted platform Plaid, and see it all in one dashboard.

3. Plan Budget Ahead: Hubmee analyzes all your spendings, and adds all your recurrence into the calendar, so you will see on which day your Insurance payment or bills need to be paid for. Knowing your payments ahead will help you to not go overdraft in your bank accounts.

4. Monitor Your credit score: You don’t have to look for your credit score all across the web, because we have it for you. Every time you open Hubmee, you will see your current credit score powered by Vantage Score. Even if your credit score drops, Hubmee will send you a notification to let you know immediately.