Many New Orleans shoppers tend to stress over what credit score is needed to finance a car during the car-buying process. Rightfully so, considering your credit score can affect your APR and whether you qualify for a loan in the first place. Keeping this in mind, join Leson Chevrolet as we cover some of the key factors to consider as you work to secure financing in Harvey.
In 2018, the credit reporting company Experian reported that the average credit score needed to obtain a new car loan was 717, and 661 for a used car loan. With that said, there were plenty of drivers who were successful in securing an auto loan with higher and lower scores than these. Here’s an overview of how credit scores are categorized:
Superprime: 781 to 850
Prime: 661 to 780
Nonprime: 601 to 660
Subprime: 501 to 600
Deep Subprime: 300 to 500
How to Secure a Bad Credit Car Finance Plan
Even if you’re a Metairie shopper working on improving your credit score, securing auto financing is possible. The worst thing you could do is assume you’ll be denied and not bother to apply for financing in the first place. Here are some tips to help you secure car financing with bad credit in Harvey:
Provide Proof: You may find that it’s easier to secure financing with bad credit if you can provide pay stubs, proof of address, auto insurance documents, and proof of employment.
Present the Positives: Even if you have a bad credit score, it’s often possible to get a car finance loan by demonstrating positive financial actions. If you’re in debt, but all of your payments are being made on time, a lender may see this as a sign that you’re responsible with your finances.
Show Collateral: If you own a home or are able to put down a substantial down payment (at least 25 percent), you’re far more likely to qualify for auto financing and get a good interest rate.