What is a Good Credit Score to Finance a Car?

May 17th, 2022 by
Car-buying paperwork

Lima shoppers may not know if they have the right credit score for financing a vehicle. If this sounds familiar, you may not be sure what the process will look like, however, no credit score financing is available at many dealerships. It seems scary to take on another payment when you don’t have a good credit score, but a large loan (if you can pay it off) is one of the most reliable routes for actually building credit and thus improving your score.

Keep reading to explore your options, then contact our finance department to explore your options. We can help you take advantage of any offers, rebates or specials to minimize your payments on your next Toledo vehicle.

No Credit Score Financing: Average Credit Score to Finance a Car

As of 2020, the average credit score for financing a new car was 721, and 657 for a used car. Findlay can likely score no credit score financing no matter their score. The disadvantage here is that the lower your credit score, the higher interest you’ll pay. Here is a breakdown of the categorization for credit scores:

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

How to Get a Car Loan With Bad Credit

What is good credit to finance a car? At any point you can secure a loan, but Toledo drivers in the deep subprime category will need to consider a few things:

  • 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.
  • 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.
  • 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 With Exceptional Motorcar Experts

Are you still unsure if you have the credit score that will allow you to secure financing on a loan? You can contact our team or visit our experts in Defiance to get a better idea if a financed loan is a good option for you. You can explore more of our car buying tips if you want to look more into securing the loan that’s right for you.

 

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