What Credit Score is Needed to Finance a Car?

Are you not sure whether you have a good enough credit score to finance a car? There are a lot of variables at play when trying to finance a car in Amherst. Nevertheless, many dealers offer bad credit car finance plans. In fact, taking on a big loan when you’re in a position to pay it off can be one of the best ways to improve your credit score. Find out exactly what credit score is needed to finance a car in the Clarence area with the experts at Basil Resale Sheridan below!

Credit Scores Per Health Category

So, what credit score is needed to finance a car, truck, or SUV? The average credit score of drivers who have secured auto loans in 2020 is 721 for a new vehicle and 657 for a pre-owned model. You’re more than likely to get bad credit car finance loans regardless of your credit score, however, lower credit scores result in higher interest payments. We’ve broken down the different health categories for credit scores for your convenience: 

• Super prime: 781 to 850
• Prime: 661 to 780
• Non-prime: 601 to 660
• Subprime: 501 to 600
• Deep Subprime: 300 to 500

How to Secure Bad Credit Car Financing

Now that you know the necessary credit scores to finance a car, you’re that much closer to securing bad credit auto financing. Even if you’re shopping for cars in the Buffalo area with a deep subprime credit score, you can still get bad credit car finance loans. You’ll just have to take the following factors into consideration: 

• Show Collateral: If you own a home or are able to put down a substantial down payment (at least 25%), you’re far more likely to qualify for auto financing and get a good interest rate to boot.
• Bring Proof: Bring pay stubs, proof of address, cell phone bills, auto insurance documents, and proof that you’re currently working. Any document that can show you’re responsible, and you’re in a position to pay off your car loan despite your credit score will help. 
• Focus on Positives: If you can demonstrate that you’ve made positive financial actions, you’ll increase your odds of securing a loan. For instance, if you’ve never missed a credit payment, but your credit score has been marred by business debt, you’re in a better position.

Explore Financing Options at Basil Resale Sheridan

Why don’t you contact us at Basil Resale Sheridan and begin constructing a bad credit car financing plan with the experts? We’ll help you figure out if a bad credit auto loan is the best option for you right now. Our savvy consultants will also do everything in our power to improve your leverage at the negotiating table!