What Credit Score is Needed to Finance a Car?

If you have no or bad credit, car financing can seem out of reach. However, it may not be. There are lenders who work with a variety of credit levels, though some may charge higher interest rates. Before you give up on car financing, find out what credit score is needed to finance a car so you can see what lenders might approve you!

What is the Average Credit Score to Finance a Car?

What is the average credit score to finance a car? In 2020, it was 721 for a new vehicle and 657 for a used car. However, you can likely get a loan even if your credit score is on the low end. Here’s a breakdown of the different ranges 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 Financing

What credit score is needed to finance a car? It can depend on the situation. Yet, even those in the deep subprime category can secure auto loans near Big Timber and Livingston if they keep the following in mind:

• Focus on Positives:  If you’ve had no delinquencies and no maxed-out credit limits, that can go a long way in helping your case.
• Be Persistent: Don’t be intimidated by what lenders say; there are options that can work for your situation even if your credit history is limited
• Bring Proof: You’ll want to bring pay stubs, proof of address, cell phone bills, auto insurance documents, and proof that you’re currently working.
• Offer Collateral: If you’re able to make a substantial down payment (at least 25%) or you own a home, you’re more likely to secure a loan. 
• Know Your Prices: Find out what interest rates are being charged by the lenders in your area so you have an idea of what range you may fall into.

Explore Financing Options With Underriner Hyundai

As you can see, what credit score is needed to finance a car will depend on your situation. If your score isn’t what it should be, don’t give up! Instead, explore what financing options are available to you by applying with Underriner Hyundai today or contacting our finance center for more information about what we offer!