If an individual is looking to purchase a car and if he/she doesn’t have the sufficient cash or trade-in to cover the whole price, then a loan is required. As such, getting a car loan approved will not be easy if his/her credit score is low. So, what’s the minimum score needed for a car purchase? Read the following article to know what our expert team at Credit Advisors Group says about this here…
Factors to be considered:
As such, a car loan approval will depend on a few factors. They are:
Credit payment history
Of all these, the credit score plays a major role and can have a huge impact on whether your loan is approved or not. Also, this would impact your interest rate as well. If your credit score is good, you can ensure that your loan gets approved, when at the same time being able to avail the lowest possible interest rate.
The Minimum Score Required:
As far as minimum score need for a car approval is concerned, we will say that it could vary between the lenders. While some of the lenders would be ready to take the risk of approving your loan with a bad credit score, some lenders may not be ready to take the risk. Also, the lenders who are ready to take the risk will approve the loan with higher interest rates. Thus, you will have to pay at least three to four times the amount that will be paid by the individuals with a good credit score. As such, a poor credit score is identified by the lenders as the score between 501 and 600 and any score that is less than 500 will be considered as a bad credit.
Thus, the best way to go about a car loan is by first working on your credit score as much as possible before applying for a loan. If you need any help on repairing your credit score, feel free to contact us anytime by clicking here.