The credit score you have can determine if you’ll be accepted for a car loan. If your credit is low enough, it may not matter how much money in savings and income that you have because the lender will still say no to any request for financing from an applicant with poor or bad credit!
If your goal is to buy a new or used car but don’t know what level of qualification (credit score) is required first-hand, then this article should help answer some questions about where one might start when looking into things like their personal finances as well as get information on keeping themselves out of debt while they work towards becoming more financially stable so they’re ready to make those big purchases down the line without fear.
What’s the Average Credit Score to Finance a Car?
During the last quarter of 2018, it has been found that borrowers with a credit score higher than 718 were more likely to receive financing for new cars while those whose average was below 659 had better chances at getting used cars. Generally speaking, people who have high scores are able to get lower interest rates and fees since they generally qualify for top tier loans. These ratings are separated into categories:
• Superprime: 781 to 850
• Prime: 661 to 780
• Nonprime: 601 to 660
• Subprime: 501 to 600
• Deep Subprime: 300 to 500
How to Get Car Financing with Your Current Score?
Car financing is not just for those with perfect credit. Car people in any city can get approved, especially if they take a few steps to improve their chances of getting loans through San Diego-based lenders like ours.
Car financing isn’t only available to the lucky ones! By taking a few small steps you too could be eligible and end up driving home in your new car today.
• Highlight the Positives: Despite a bad credit score, if someone has always been paid on time for their car loans they may be more likely to get approved.
• Bring Proof of Employment & Address: In order to get the best chances of your application being accepted, you’ll need to show that you have held a job and lived at an address for six months or more. The longer you can prove this information, the better!
• Have Collateral : If you have a home and can put down at least 25%, then there’s almost no chance that the banks will turn you away for an auto loan. You’ll be able to find some of the most competitive interest rates available, as well.
