Bad Credit Car Loans Minimum FICO Credit Score Needed for Approval
You need to have a firm understanding of the minimum credit score for auto loan — applying for a car loan without such basic knowledge will hurt your chances.
People who have no problem getting approved are considered to have prime credit, and typically have a score in excess of 720. Anything below 600 is considered sub-prime credit, and the lowest standard of all is a 480 credit score — anything below that and getting approved is extremely difficult.
Typically, a score of at least 600 is what most lenders will require before considering an auto loan. But there are other factors that can greatly affect your chances, so it’s not sensible to take a tunnel-vision approach when seeking a loan. Even with very bad credit, there are lenders out there who will try and accommodate you.
One of the best ways to get round the minimum credit score for auto loan is to come up with a 20 percent down payment. The greater the value of the car, the more you should try and put up as a deposit. Lenders will view this as a good thing because it will reduce their risk exposure.
Tags: 20 Percent Down Payment, 480 Credit Score, 600 Credit Score, 720 Credit Score, Bad Credit Car Loans, Bad Credit Car Loans Minimum FICO Credit Score Needed, Car Loans Minimum FICO Credit Score Needed for Approval