There usually is a minimum credit score needed in order to qualify for an auto loan. For this reason, if you are dealing with bad credit it can be more difficult to get approved. But since special finance lenders consider additional factors, there often is no fixed minimum credit score for these loans.
Bad Credit Auto Financing
It doesn't matter how your credit score got bad. It happens to a lot of people and it can make getting approved for loans and credit much more difficult.
Most banks, credit unions and other major lenders tend to only work with customers with good credit. The result is that this leaves a significant number of people who need a car out of luck. However, there is a way for these borrowers to get approved for auto financing.
Subprime lenders have emerged to cover this gap in lending. They have teamed up with dealerships in order to offer these consumers bad credit auto financing. These subprime auto loans allow people who might not traditionally be able to finance a car the ability to do so.
Subprime Auto Loan Requirements
There are requirements that must be met in order for an applicant to be considered. While there is no universal standard, these are the typical subprime auto loan requirements:
- Gross monthly income of $1,500-$1,800 (before taxes are taken out)
- 18 years of age or older
- Legal resident and citizen of the U.S. or Canada
- A down payment
- A valid driver's license
- A phone from a major carrier in the borrower's name
However, you should note that every special finance lender is going to have slightly different requirements. In addition, each applicant will be evaluated individually based on a number of factors. These range from your credit history to your income and debt situation, and more.
Bad Credit Auto Loan Minimum Credit Score Needed
Your credit score is still going to matter to these lenders. It will be one factor they look at in determining whether or not you qualify. Also, it will be used to determine the terms of the loan if you are approved.
However, subprime lenders do not look at your credit history as the end all, be all. They will also look at your income, recurring debt levels, employment and residence situation, and more. So, even if you are dealing with a low credit score, you can still be approved.
Basically, there is no set in stone credit score needed in order to qualify. Special finance lenders are going to carefully look at each application and take many factors into consideration.
Most dealerships can't accommodate people with poor credit scores. This is because most are not signed up with the right lenders. However, Auto Credit Express can help. We've teamed up with a nationwide network of dealerships that specialize in helping people in poor credit situations finance cars.
Save yourself the time and hassle of going from dealer to dealer looking for one that will work with your credit situation. We can help you find the right one on the first try. All you need to do to get started is complete our free and easy online application. The sooner you apply, the sooner you can be driving off in your new car.