If you don't know what the minimum credit score for an auto loan is then you are setting yourself up for rejection after rejection. I don't want you to get rejected so I've put together this short article to give you some inside information on credit scoring and tips to follow to improve your approval rate with lenders.
What's with credit scoring anyway?
The 'credit score' was created as a standard for assessing the ability of a borrower to repay the amount borrowed in the form of a loan. It's a standardized system of rating and is calculated using several variables. It it's simplest for your credit score will always be assessed based on the following guidelines:
\"auto Loan\"
- 720 and above is Prime Credit
- 680 to 719 is Good Credit
- 640 to 679 is Marginal Credit
- 600 to 639 is Sub-Prime Credit
- 580 to 599 is Poor Credit
- 525 to 579 is Bad Credit
- 480 to 524 is Very Bad Credit
If you find yourself in any category below marginal credit then it's not the end of the world. The finance industry has recognized that in these tough economic times there are a lot of people who can't boast a good or above credit rating. As a result of this there a lots of companies that will lend money to people who for whatever reason have a poor credit standing.
What's really good about auto loans is that qualifying is not as tough as say qualifying for a mortgage. The sum of money involved is usually smaller in comparison and so all one has to do is meet the minimum credit score for an auto loan.
If you find yourself with a score of say 480 - 524 (Very bad credit), the best way to improve your chances of getting an auto loan approval is to come up with a down payment. This will not only reduce the amount you have to borrow, but will give the lenders some confidence that you are at least able to come up with some of the cash.
Finding that perfect car loan doesn't have to be difficult and I hope that having read this article you now understand the fundamentals of credit scoring and what you can do today to ensure that you are successful with a loan application.
There are lots of online auto loan companies that specialize in lending to people with very low credit scores. I am confident that now you'll be able to chose the right one and get that auto loan you've always wanted.
Minimum Credit Score For Auto Loan - Best Score For Guaranteed Approval
How to Get an Auto Loan Fast, Even With Bad Credit:
Believe it or not, you can get a fast auto loan REGARDLESS of your credit. Visit Best Bad Credit Car Loans to receive FREE quotes from the top 3 auto loan service providers. The application process takes just 60 seconds to complete. In fact, you could qualify for a car loan in as little as 24 hours, even if you've been turned down before. Best of all, the quotes are free and there is absolutely no obligation whatsoever.
Best of luck! Visit www.BestBadCreditCarloans.org to get started.
--Sarah