Low Credit Score Auto Loans
With your low credit score car loan pre-approved, you can finalize your interest rate and terms, visit a local dealership, and purchase the vehicle you want. The process is quick, simple, and complementary (no fees!). Ensuring your privacy is a top priority. We protect the data in your application via SSL encryption (https).
Auto Loans: Low Credit Score TipsIf your credit score is lower than 620 or so, you would normally encounter a good bit of frustration getting approved. Your run-of-the-mill banks and credit unions seldom allow people with bad credit to finance their car purchases. This same is true of large franchised dealerships that offer auto loans directly through automakers. Sure, they may advertise zero APR financing incentives, but these are contingent on “approved credit.” You can bet that you will need a 720+ credit score to qualify for such deals.
However, there are credit unions, dealerships, auto finance companies, and other lenders who have Special Financing departments. That means they specialize in lending to people with low credit scores. If you need a car loan with low credit, this is the way to go.
So what’s the catch? There are two: APR rates and down payments. Everybody knows that the lower your credit score, the higher your rate of interest will be. This just comes with the territory. Of course, the good news is that taking on an auto loan and then repaying it as scheduled will boost your credit score like nothing else.
Secondarily, there are down payments to consider. Most lenders want to see one, whether your credit scores are high or low. How much? Typically, 10% will get you in the car you want. However, 20% is a better target, if you can afford it.