What Credit Score Is Needed to Finance a Car?

You’re on the lookout for a new vehicle, but what credit score is really needed to finance a car? Many Livonia drivers are hesitant to upgrade to a new vehicle, because they’re weary about their credit scores. The good news is that most dealerships offer bad credit car finance options, and we can give you a better sense of the ideal credit score to finance a car with. You can even see if a trade-in option is a good idea for your current vehicle. Read more below to learn more about credit scores, how to finance a car with bad credit, and how different credit scores can affect your rates. We’re always here for our drivers with plenty of car-buying tips!

The Average Credit Score to Finance a Car

Generally speaking, the average credit score to finance a car is 722 for a new vehicle and 655 for a used vehicle. It’s very possible to buy a car with bad credit, but you’ll likely experience higher interest rates. Take a look below at the different categories of loans based on a given credit score:

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

How to Get Car Financing With Bad Credit

Having a less-than-ideal credit score to finance a car doesn’t mean you’ll automatically be rejected for a new car. This situation can be frustrating for many drivers, as often these situations come up when you’re in dire need of a new vehicle. If you’re able to, there are ways to raise your credit that don’t require large loans like a car payment, but it does take time. Opening a credit card, using it, and immediately paying off what’s on your card is a great way to start building up your credit. Here are some factors to keep in mind when you’re looking to score a car loan with bad credit:

• Business Debt: Obviously, having good credit will increase your odds of securing a loan. If you’ve never missed a credit payment for credit cards or a previous vehicle loan, but your credit score has been marred by something like business debt, you’re in a better position to get a car loan with bad credit.
• Show that Collateral: If you’re a homeowner or are able to put down a substantial down payment (at least 25% down), you’ll be far more likely to qualify for auto financing and get a better interest rate because you’re financing a lower amount.
• Show the Proof: The above factors can happen, but they don’t always apply. Always bring pay stubs, your proof of address, your cell phone bills, auto insurance documents, and proof that you’re currently working when applying for a car loan. Any document that can show that you’re responsible, and you’re in a position to pay off your car loan despite your credit score, will help put you in a better position.

Learn More with Gordon Chevrolet, Inc.

If you still have questions about what credit score is needed to finance a car or bad credit car finance options, contact us today online or call us at (734) 237-7162 to learn more. Our finance center can work with you to figure out the best option for you as you’re looking for your next vehicle.

As always, we do our best to help you save money when you’re looking for a car near Canton. We offer plenty of pre-owned vehicle specials that are always rotating, and we have a handy payment calculator to help you get a better understanding of your estimates. At %di_name%%, we’re here to help you find a vehicle that’s ideal for your daily driving needs!