What Credit Score is Needed to Finance a Car?
When your financing or leasing a truck near Milwaukee, one one the things a lender will look for to approve you is your credit score. Your credit score, along with other factors, can affect your APR, as well as whether or not you qualify for a loan.
What’s the Average Credit Score to Finance a Car?
To qualify for an auto loan, the average credit score is around 714 for a new car and 655 for a used car. You can also, of course, qualify with a higher score, and you might get approved approved with a lower score. Automotive financing based on credit scores are broken down into the following categories:
- Superprime: 781 to 850
- Prime: 661 to 780
- Nonprime: 601 to 660
- Subprime: 501 to 600
- Deep Subprime: 300 to 500
Are There Bad Credit Car Finance Options?
Even if your credit score is in the deep subprime or subprime credit categories, a car loan may be possible in the Northern Chicago area.
- Focus on Financial Positives: You might be able to get approved for a loan with bad credit if you can demonstrate positive financial actions, such as on-time payments or no accounts in collections.
- Provide Proof: You have a better changed of qualifying if you can show proof of income via pay stubs, proof of a home and/or work address, cell phone bills paid on time, and auto insurance documents.
- Provide Collateral: If you’re able to put down a substantial down payment (at least 25%), you have a better chance of being approved for automotive financing.
When you’re comparing options, you should definitely understand the difference between compound and simple interest loans.
Explore Finance Options at Lynch Truck Center
Whether you’re ready to apply for financing or you’re just looking for more information on the car-buying process, our finance team will be happy to help. We’re also a reliable source for more information on trucking insurance options, such as trucking liability coverage. Contact us online with questions or stop by to chat in person in Waterford.
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