How Much Will Credit Score Differences Affect Your Loan

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  2. How Much Will Credit Score Differences Affect Your Loan
People most of the time think that credit scores can not really affect things all that much can they? If I am looking for a damaged credit used car loan or a good credit new car loan they should be the same shouldn't they? This is something that a lot of people ask. Well in fact they can a lot of times that is going to be a deciding factor on whether or not someone is going to even receive financing. This shows that it is obviously going to be a huge deal and thus you are going to have to move carefully on to your second step all depending on how your credit score is going to be doing.

Different Options with Different Credit

Everyone's credit score will be different and thus will require different courses of action. Once you have figured out what range you fall in then you will be able to explore your options. Here is a table that should be a helping hand.

Situation Min. Credit Score
Good Credit 700
Fair Credit 625
Sub Prime Credit 575
Bad or No Score 525
Really Bad Credit N/A

Now that you have an idea of where you stand hopefully you will be able to continue to the next possible step and that would be to actually apply for an auto loan.

Methods of Applying

Credit Scores make Loan DifferencesNow when it comes to applying for an auto loan you will want to be very careful and knowledgeable because if you apply and get denied it will lower your score. Not by any kind of drastic means, but every little bit counts and if you are dealing with poor credit (which would be a large reason why you were not approved) then that is going to be the last thing that you want to hear.

If you do have poor credit then your method to apply would probably to look into online financing to have the best chances. This is where you will fill out an application online and your information will go around to local dealers and the best rate will be found for you. This is a great way to find a loan for any type of credit situation and will be most beneficial to people with rough credit because it will help in raising your credit score later on.

If you have no credit score then you can try this method, but it may not be completely successful for you. An option that will definitely work is to apply through a buy here pay here dealer, but that will not help you to build any credit if that is what you are looking to do. The best bet would to be to go ahead and try applying anyway.

If you have a good credit score then your options are going to be wide open, just about any method that you choose will come out as successful. This is exactly what lenders hope to see so they should have no complaints.

Car Loan Auto Financing Online

Do you meet the basic qualifications?

  • At least 1 year with current employer
  • A minimum income of $1,500 per month
  • No repossesions within the last year
  • Any bankruptcies must be discharged
  • Money down may be required, but not in all cases
  • Must be a current resident of the U.S. or Canada