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.
Read More: https://www.creditrepairease.com/blog/what-credit-score-is-needed-to-finance-a-car/
Comments
Post a Comment