What Credit Score is Needed to Finance a Car?

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Many Lynn drivers don’t know whether their credit score is high enough to finance a car. If this sounds familiar, you may be unsure of the right credit score to finance a car, but there’s no need to worry because plenty of dealers offer bad credit car finance options. While that phrase may sound scary, taking on a big loan when you’re in a position to pay it off can be one of the most direct routes to improving your credit score. 

Keep reading to learn more, and when you are ready, get in touch with the finance department to discuss your options. We’ll make sure you take advantage of every applicable special and rebate under the sun to minimize the cost of your next vehicle in Danvers. 

Good Credit Score to Finance a Car

The average credit score of people getting auto loans in 2020 was 721 for a new vehicle and 657 for a used car. Everett drivers will hopefully find comfort in knowing that they can probably find a bad credit car finance loan regardless of their credit score. That said, the lower your credit score, the higher interest you’ll pay. Here is a breakdown of the different health categories for credit scores:

  • 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 Bad Credit Car Finance Options

What credit score is needed to finance a car? This will vary for different people. Burlington drivers with a deep subprime credit score can still secure bad credit car finance loans, but they’ll need to consider:

  • 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.
  • 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.

Come to Honda North for Your Next Vehicle

If you still have questions about what credit score is needed to finance a car, you can discuss your situation with our team at Honda North. We can determine if you have the credit score to finance a car, and the course of action that is best for you. Contact us today and we look forward to helping you find a solution. 

 

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