What Credit Score Is Needed to Finance a Car?

Car key & credit card on a signed contract

If you need a new car to take on the Waco commute, you may be worried about whether you have a good enough credit score to finance a car. Thankfully, many dealerships provide bad credit car finance offers for drivers to find the car they need. When you’re in a position to pay it off, taking out a larger loan is one of the most direct ways to improve your credit score. Follow along with the finance department at Allen Samuels Auto Group, and we’ll answer your questions like, “What credit score is needed to finance a car?” and “How do I get financing with bad credit?”

Average Credit Score to Finance a Car

Having bad credit doesn’t mean you have to miss out on an auto loan around Aransas Pass. In 2020, the average credit score of drivers who secured new vehicle auto loans was 721, while the credit score of drivers who secured used car loans was 657. Although your credit score may be lower than the average, you can secure a bad credit car finance loan with higher interest. Let’s take a look at how the credit scores are broken down:

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

Securing Bad Credit Car Financing

There is no direct answer to “What credit score is needed to finance a car?” Even Hutchinson drivers in the subprime can have the credit score to finance a car they have their eye on, but they’ll need to keep these tips in mind:

  • Focus on Positives: Positive financial actions put you in good standing when trying to secure a loan. For example, your credit score may be impacted by business debt, but your history of timely payments puts you in a better position for lenders.
  • Bring Proof: Have the documentation to back up the positives you’ve established. Compile pay stubs, your proof of address, cell phone bills, auto insurance documents, and proof that you’re currently working to show you’re in a position to pay off the loan despite your credit score.
  • Show Collateral: Showing that you have property, like a home, for collateral or being able to put down a significant down payment of at least 25% increases your chance of securing a loan or even getting you a good interest rate.

Explore Financing Options With Allen Samuels Auto Group!

Don’t let your credit score prevent you from finding a new for your Waco commutes. Find the answers to your other financing questions by taking a look at our car buying tips, and if you have more questions about how you can finance a car, reach out to our team at Allen Samuels Auto Group.

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