What does my credit score have to be in order to finance a car?
jaquith unch asked:
I have recently paid off everything on my credit report. My credit score is slowly creeping up. I, like a lot of people, screwed up my credit when I was younger and am paying for it now. My Scores range from 579 – 618. Can someone give me some feedback please?
Michelle
I have recently paid off everything on my credit report. My credit score is slowly creeping up. I, like a lot of people, screwed up my credit when I was younger and am paying for it now. My Scores range from 579 – 618. Can someone give me some feedback please?
Michelle
Tags: Credit Report, Finance A Car, Finance Car
December 2nd, 2010 at 1:26 pm
You can probably finance now.
If you want GOOD TERMS, which means bank or credit unions at GOOD rates you probably need to be above 675 and preferably over 700-725.
Sub prime lenders, which is what you will qualify for, make the dealer charge an extra 10-60% to finance you.
That means you pay an extra 10-60% for the car, plus very high rates.
REALLY bad deals.
Of course, most of the time, they don’t TELL people they are jacking the price up. That’s just the price at dealers who use sub prime lenders.
December 5th, 2010 at 11:43 am
There are several factors considered when a lender considers your loan approval. One, of course, is your credit score.
But – There are other issues that will help you, none the least of which is your down payment. The larger your original investment, the less important your credit history becomes.
Another thing that the lender will consider is your debt-to-income ratio. The lender is going to want to be sure that you CAN make your payments, and fulfill the terms of your agreement.
If you have a decent down payment, and a job that will afford the monthly payments, your credit score should not prevent you from securing the loan you need.
Good luck to you.
December 8th, 2010 at 8:25 pm
Financed cars is more expensive to insurance cause it requires full coverage. You can compare how much you would pay for full coverage of this car using this tool – carquotes.fateback.com