Buying a car is one of the most important necessities of life. However, in the crunching economic times, you might not have the cash you would need in order to buy a vehicle. However, this doesn’t mean that you should not be buying one. You can go to the auto financing agencies. However, they would be asking for your credit score in this case. They might deny you the coverage or ask for a baffling interest rate that would certainly not suit your current financial position. The score is the numerical value that is being provided to all the citizens by the three major credit bureaus Experian, Equifax and Trans Union. A lot of people ask what number they need in order to buy a car on loan. This post would help you in understand it and car loans better.
Though there are no specific rules that mention what specific number you need in order to get an auto loan, the companies generally prefer people who have 700 or higher. Such people can easily get a car financed from any of the lenders at good interest rates. In case yours is below 700, your options would be lesser but you would still be able to get a good deal if you make a little more effort. The lenders would change the criteria and the lenders terms. However, you might definitely have a lot of problems if your number is below 650. Some traditional and conservative lenders would definitely not be considering your application with a credit score below this.
However, there are many finance companies that consider applications with a score of 500 or higher. In this case, your interest rate and the down payment for the vehicle would be significantly higher. So, the right auto score to get a car loan is 500, but if you want to land in the safe zone, try to be as close to 700 or higher as possible.
In case your credit score is not appreciable, you can go to the Buy Here Pay Here car lots. These dealers would be financing your car on their own. To get a car financed from them, you do not have to show your credit bureau score at all. Therefore, you would have a lot of options, no matter how low it is. Instead, they look at your financial situation as a whole. For example. what is your income, how long have you been employed, and do you have proof of residency. Keep in mind that although their cars work fine, these dealerships often do not carry new or later model vehicles.