Credit score Needed to Get a Car Loan
Buying a car is one of the most important necessities of life. However, in the crunching economic times, you might not have the cash you would need in order to buy a car. However, this doesn’t mean that you should not be buying a car. You can go to the buy here pay here financing agencies. However, they would be asking for your credit score in this case. They might deny you the coverage or ask for a baffling interest rate that would certainly not suit your current financial position. The credit score is the numerical value or score that is being provided to all the citizens by the three major credit bureaus Experian, Equifax and Trans Union. A lot of people ask what credit score they need in order to buy a car on loan. This post would help you in understand the credit score and car loans better.
What are the rules?
Though there are no specific rules that mention what specific score you need in order to get buy here pay here auto loan, the companies generally prefer people who have a credit score of 700 or higher. Such people can easily get a car loan from any of the lenders at good interest rates. In case your score is below 700, your options would be lesser but you would still be able to get a good deal if you make a little more effort. The lenders would change the criteria and the lenders terms. However, you might definitely have a lot of problems if your credit score is below 650. Some traditional and conservative lenders would definitely not be considering your application with a credit score below this. The good news is that you would still be able to secure a car financing option. There are many finance companies that consider applications with a score of 500 or higher. In this case, however, your interest rate and the down payment for the vehicle would be significantly higher. So, the right auto score to get a car loan is 500, but if you want to land in the safe zone, try to be as close to 700 or higher as possible.
In case your credit score is not appreciable, you can go to the Buy Here Pay Here auto dealers. These dealers would be financing your car on their own and get you in drive time. To get a car financed from here, you would even not have to show your credit score. Therefore, you would have a lot of options, no matter what your credit score is.