Your credit score is basically a number between 350 and 850 determined by a credit reporting agency. The higher the number, the better your credit, which means a lower interest rate for your vehicle loan. The following things will lower your credit score:
- Missed or late payments on credit cards or any other type of loan
- The number of credit accounts you have and how long you’ve had them
- The age of your credit report
- The number of inquiries made by applying for credit (a few inquiries a year is acceptable)
- Write-offs and proposals
- Public records such as liens, judgments, and bankruptcies
- Credit utilization of available funds (how much of your credit limit you’ve already utilized)
A credit score of 650 or higher is considered ideal and you can qualify for a prime interest rate for a used vehicle loan, and most prime customers do not need to provide proof of income.
A credit score of 550 – 650 is considered for a sub prime interest rate (which is a bit higher than the prime interest rate). Proof of income may be required.
A credit score lower than 550 is NOT considered by the banks. We will get you the financing you need from our sub-prime lenders. We have an extensive pool of sub-prime lenders that will provide financing for your next used vehicle loan.
Bad Credit