What Credit Score Is Needed to Finance a Car?

Customers from Lakeland to Haines City ask us, “What credit score is needed to finance a car – and what do I do if I fall short?” The good news is that it’s possible to secure the car that you need at any credit level. From good to bad credit car finance options, Chevrolet Center Inc is here to ensure that you get the resources that you need to find financing that works for your unique situation. Get to know more about the average credit score needed to finance a car, and apply for financing at Chevrolet Center Inc.

What is the Average Credit Score Needed to Finance a Car?

Beyond asking “What credit score is needed to finance a car?”, let’s look at the average credit score needed to finance a car. In 2019, the average credit score for a new car loan was 715 and the average credit score for a used car loan was 662. But if you’re looking for bad credit car finance facts, keep in mind that around a quarter of deals had credit scores under 600! Credit scores under 500 comprised almost 5% of used car loans.

How will lenders view your credit score? Here is a broad overview of where you may fall. While many factors go into your application, credit scores typically break down into the following categories:

• Super Prime — 901 to 990
• Prime Plus — 801 to 900
• Prime — 701 to 800
• Non Prime — 601 to 700
• High Risk — 501 to 600
• Bad — 300 to 500

Can I Find Bad Credit Car Finance Offers?

Let’s say your credit score is less than ideal. There’s no need to worry. You can still find approval from a number of lenders to help you secure the car that you need, but it’s a good idea to do a little research before you begin. This will help you put your best foot forward. 

• Demonstrate positive financial actions. Lenders may look favorably on higher credit scores, but many are flexible. If your debt is due to factors like student loans or hospital bills, bring proof that you have consistently and promptly paid toward those debts. This can highlight your responsibility as a lendee.
• Prove your financial stability. You’ll want to show that you have the financial stability necessary to pay off your new car loan. Bring your last three months of pay stubs, several pieces of mail as proof of address, and proof of current employment.
• Provide collateral. If you own a home or other collateral, consider bringing in proof of these investments as a form of collateral. This can help make you a more favorable candidate for a loan.
• Make a 25% down payment. Many Davenport customers offset a lower credit score with a higher down payment. If you can afford at least 25%, this will help lenders view you more favorably than someone with a lower down payment. However, don’t spend more than you can afford.

Apply for Flexible Financing at Basil Ford

We’ve gone over what credit score is needed to buy a car and what you can do to improve your application, but feel free to ask more questions at Chevrolet Center Inc. Contact us to get customized advice from our financial experts, and swing by Winter Haven to get the process started. We’d be happy to offer more car buying tips!