Why Auto ApproveResourcesFAQ
(844) 336-3365
Why Auto ApproveAuto RefinanceAuto Lease PurchaseMotorcycle RefinanceResourcesFAQ
(844) 336-3365

What is a Good Rate for an SUV Loan?

Finance | 02/14/2022 23:00

If you are in the market for a new or used SUV, you are probably wondering what is considered a good rate right now for financing. Or maybe you're wondering about where refinancing your SUV could save you money. While your interest rate will vary based on your credit score and credit history, we’ve looked at rates across the country to find out what the top rates are. 

Interest rates are determined largely by your credit score. Here we will discuss how you can increase your credit score to get the best rates for your SUV loan.

Let’s talk about what are good rates for SUV loans and how you can get the best rates possible.

Everything you need to know about SUV loan rates in 2022

What are good rates for new SUV loans?

In general, car loans for new SUVs will have lower rates than loans for used SUVs. This is because lenders view new SUVs as less of a risk. They are less likely to break down or have mechanical issues, and it is easier to predict how they will depreciate.

So what is a good apr for a car loan, and specifically for an SUV loan? Below we have listed the average APR of new SUV loans in early 2022, based on credit score.

  • 781-850: 3.17% APR

  • 661-780: 4.03% APR

  • 601-660: 6.79% APR

  • 501-600: 10.98% APR

  • 300-500: 13.76% APR

If you find any rates lower than the average, you should consider it a good car loan APR

What are good rates for used SUV loans?

Since used SUVs are a bit more of a risk than new SUVs, their interest rates tend to be a little higher. There is a much higher likelihood that something will go wrong with a used SUV. Below we have listed the average car loan APR of used SUV loans in early 2022, based on credit score.

  • 781-850: 3.80% APR

  • 661-780: 5.48% APR

  • 601-660: 10.10% APR

  • 501-600: 16.27% APR

  • 300-500: 19.32% APR

If you find any rates lower than the average you should consider it a good interest rate. 

How do you get the best interest rates for your SUV loan?

When you look around at interest rates, you may be wondering how you can qualify for a better car loan APR. As we see by the brackets above, raising your credit score is the best way to ensure you get the best interest rate available. 

Your credit score is the most important factor in your interest rate. Lenders look at the following components to determine if you are creditworthy. After all, lenders need to ensure that they will make their money back. 

  • Payment History. This is the most important factor in calculating your credit score, accounting for 35% of your FICO score. Do you have a history of on time payments, or do you miss payments here and there? Are your payments always in full, or do you fall short every now and then? Lenders want to be sure you will pay back your debt on time.

  • Amounts Owed. The amount of money you owe (your debts) are used to calculate your credit utilization score. This is the second most important factor in your credit score, accounting for 30% of your FICO score. This is calculated by dividing your total debt by your total credit limit. 

Example: Between all of your outstanding accounts, you currently owe $7,500. 

Your combined credit limit for all of these accounts is $75,000. 

7,500/ 75,000 = .1 = 10% Credit Utilization

A credit utilization score below 30% is considered desirable for lenders. 

  • Credit History Length. The age of your credit accounts make up 15% of your FICO score. They look at the age of your oldest account, the age of your newest account, and the average age of all accounts. Having older accounts and a longer credit history is more favorable to lenders.

  • Credit Mix. Lenders like to see a diverse assortment of accounts. A healthy mix might include a mortgage, auto loan, student loan, and credit cards. This indicates to lenders that you can manage your money across multiple accounts. Your credit mix accounts for 10% of your credit score.

  • New Credit. The number of new accounts you have opened plus the amount of hard inquiries you have had on your credit account for 10% of your credit score. Hard inquiries occur when creditors request a formal credit check on you. People often ask, “how long do hard inquiries stay on your credit?”. They typically affect your credit score for one year.

How can I improve my credit score to get the best interest rates for my SUV loan?

Working to improve these areas of your credit report can save you a lot of money in interest. Here are our top tips for improving your credit score and securing the best car loan aprs possible.

Get Your Credit Report and Review for Errors. 

You can get your credit report for free up to three times per year. Experts recommend checking your report throughout the year to insure there are no discrepancies. You should cross check your credit limits, outstanding balances, outstanding accounts, the dates you opened your accounts, your payment history for each account, and check if there are any bankruptcies or tax liens listed. If you notice anything that is incorrect, be sure to contact the credit bureau as soon as possible. It may take them up to 30 days to respond to you, but staying on top of this may greatly impact your credit score.

Request Higher Credit Limits

As we went over before, your credit utilization ratio plays a large part in your credit score. Even if you do not pay down your debts significantly, increasing your credit limit will tilt the ratio in your favor. 

Keep your credit balances below 30%

Again, think of your credit utilization ratio. The lower the balances are, the lower (and better) your ratio will be.

Make on-time payments 

Keeping current with your payments is incredibly important when trying to improve your credit. Remember, payment history makes up 35% of your credit score. A quick and easy way to do this is to set up autopay on all of your accounts that offer it. This way, you don’t miss a payment due to a busy schedule or something getting lost in the mail.

Continue using consumer credit 

When people think of improving their credit score, they often think of immediately stopping all credit. And while some people may need to do this to curb their spending, it’s best if you can continue using your consumer credit modestly. Use your credit cards but try to pay them off in full every month.

Become an authorized user on another account

If you have a friend or family member who has outstanding credit, becoming a secured user on their account is a quick and easy way to boost your credit. And the best part? You don’t even need to use their account. Simply having your name on the account will increase your credit score. One way to do this is to refinance your vehicle with a co-signer – you can start raising your credit and lower your monthly payment in one go!

Try Experian Boost

Experian has just launched a service called Experian Boost, which can increase your credit score instantly by including account payment histories that are typically excluded from credit score calculations.Utility and phone bills are usually not included in your credit score, but Experian looks at your bank account and identifies qualifying accounts that you make timely payments on, giving you credit for those on-time payments. And if Experian finds that you don’t have a good history with these accounts, it won’t count them against you. This is a super quick, easy, and free way to increase your credit score.

Get a debit card that builds credit

There are a few debit cards out there that link to your bank account and build your credit. Debit cards such as the Extra Debit card base your credit limit on your bank account balance. Every time you use your card to purchase something, you help build your credit. The Extra Debit card even has perks like a credit card does, like 1% back on all of your purchases. The card pays itself off every day, causing it’s credit utilization to reset every 24 hours. So you essentially have a card that pays itself off with no interest and can keep you below the suggested 30% Credit Utilization Ratio.

Try to use these tips to increase your credit score. You could save loads of money just by making simple changes to your spending. Bumping your score from “fair” to “good” or from “good” to “very good” can drastically change what interest rates you are offered. 

And that’s what you should know about good SUV rates and how you can get the best interest rates possible.

It’s important to shop around for the best car loan aprs on SUV loans. A lot depends on your credit, but some lenders will work with you more than others to secure a lower rate.

If you already have a loan on an SUV and are overpaying, Auto Approve can help! We specialize in refinancing and have great relationships with lenders across the country, all with the goal of saving you money. So if you are overpaying on your SUV loan, get started with Auto Approve today to get a free quote!


More Resources

(844) 336-3365Get My Rate
Copyright ©2024 AutoApprove. All rights reserved.
*APR and Fees Disclosure: Auto Approve works to find you the best Annual Percentage Rate (APR), which is based on factors like your credit history, vehicle and desired payment terms. Fees to complete your loan refinance vary by state and lender; they generally include admin fees, doc fees, DMV and title. Advertised 6.24% APR based on: 2019 model year or newer vehicle, 730 minimum FICO credit score, and loan term up to 72 months. All loans subject to credit and lender approval.
Auto Approve has an A+ rating with the BBB and is located at 2860 Vicksburg Lane North Plymouth, MN 55447. Auto Approve works to find its customers the best terms and APR, which are based on factors like credit history, vehicle, and desired payment terms. Loan amounts, costs, and fees vary by state and lender; they generally include admin fees, doc fees, DMV, and title fees, depending on the lender and period of repayment. There is no fee to obtain a quote and all refinancing-related costs are included in the amount financed so there are no out-of-pocket costs! For more information, please go to AutoApprove.com.