The credit score for Honda financing isn’t fixed. The minimum credit score needed to finance a Honda is typically 585, but, in some cases, a Honda dealership may be able to approve financing for someone with a credit score as low as 560. Keep in mind, if your credit score is less than ideal, you may need to provide a larger down payment and will likely pay higher interest rates than someone with good credit. For more on Honda financing, see below.
Credit Score Needed for Honda Financing
Honda has fairly low credit requirements when it comes to financing a car. In most cases, you can finance a Honda with a minimum credit score of 585, said customer service representatives at several different Honda dealerships. In some cases, Honda representatives said they could approve financing for someone with a credit score as low as 560, depending on the reason(s) for the low credit score.
Honda dealerships use Honda Financial Services to qualify customers for auto financing. You can find out ahead of time if you qualify for Honda financing by applying for pre-approval on Honda Financial Services’ website. The credit pre-approval process will not impact your credit score. If you know your credit score is less than ideal, you may want to wait to apply in person at a Honda dealership. Several users on Credit Karma reported better odds of obtaining credit by working directly with the dealership. It’s important to note that if you’re turned down for financing at a Honda dealership, other Honda dealerships will be obligated to turn down your application as well since the system has already rejected your application.
Down Payment Requirement and Interest Rates for Honda Bad Credit Financing
A required down payment and the amount of interest you’ll pay on your Honda auto loan depends on your credit score. In general, if you have a lower credit score, you’ll need to make a larger down payment and you’ll have higher interest rates than someone with good credit. A representative at a Honda dealership in Washington said that if you have a credit score of 650 or above, you can often finance a vehicle with no down payment. For credit scores below 650, your down payment can range from about $400 to $1,000. As far as interest rates, Honda Financial Services uses a four-tier system: Super Preferred (710 to 760+), Preferred (660 to 709), Standard (610 to 659), and Select (609 or lower). A Honda dealership in Seattle quoted the following interest rates by credit score for a new Honda:
- 760+: 4.89 to 5.19%
- 759 to 710: 4.99 to 5.49%
- 709 to 700: 5.84 to 6.34%
- 699 to 690: 5.99 to 6.74%
- 689 to 680: 6.14 to 7.09%
- 679 to 670: 6.94 to 8.24%
- 669 to 660: 7.79 to 9.34%
- 659 to 650: 8.69 to 10.59%
- 649 to 640: 9.49 to 11.69%
- 639 to 630: 10.29 to 12.79%
- 629 to 620: 12.19 to 15.09%
- 619 to 610: 14.09 to 17.39%
- Lower than 609: 15.94 to 19.64%
If you are within a few points of the next tier, a Honda dealership may be able to move you up in order to get you a lower interest rate. Interest rates for used or certified pre-owned Hondas are generally 1 to 2% higher than the rates for new vehicles, Honda dealership representative said.
In most cases, Honda financing is available for people with credit scores as low as 585. For more information on car financing with bad credit, see our articles: CarMax Bad Credit Approval Policy (Including Credit Score Information) and Minimum Credit Score to Lease a BMW + Other Lease Requirements. If you’re set on Honda but unsure if you’ll be able to make your payments, you may want to see our article about Honda’s grace period.