Your credit score is probably the single most important thing about you in terms of getting approved for low-interest credit cards and loans. It is no different when it comes to auto financing.
As someone who may have been rejected on more than one occasion for a new auto loan, you may be wondering if your credit (FICO) score has something to do with it. Of course, you know that it does. The more specific question is: what score is sufficient in order to get qualified for a car loan?
If you are wondering, “What does your credit score have to be for auto financing?”, here are 3 insights for you to consider:
1. To get the best-possible rates your score should be above 720:
Ever seen a TV commercial whereby they are offering 0% financing on car loans for a new car? You also probably noticed that the announcer always tacks on a phrase after such an offer such as, “For well-qualified buyers only.” What this translates to is: “For people with an excellent credit score of 720 to 770 or higher.” This means that it is highly unlikely that anybody with a lower FICO score applying for the same type of loan will be able to qualify for those same ultra-low rates.
2. Even if you have a score below 600, you can still qualify for auto financing:
But, what about people on the other end of the spectrum – such as someone with a “poor” credit score of under 600 – can they qualify for auto financing? It is true that having a lower credit score will mean a less attractive interest rate. But, if you know where to look, you can find auto financing lenders who will extend you auto financing even if you have a poor credit score.
3. The secret is to look for bad credit auto financing lenders:
In order to qualify for auto financing even with a credit score below 600, you will need to find a list of bad credit auto financing lenders. These lenders are in the business of making auto loans to people with less-than-perfect credit.
Build yourself a list of bad credit lenders and start applying to at least five of them. This is the best way to increase your chances of not only getting approved, but also of getting the best rate for someone in your credit score bracket.
Tags: Auto Finance