What Credit Score is Needed to Finance a Car?

What credit score is needed to finance a car? And what do you do if you fall a little short? The answer is that there’s no single definitive credit score to finance a car, and you have more options than you might think. The team at Red Wing Chevrolet is here to help you secure the vehicle that you need at a price point that you can afford, so learn all about how to finance your next car with us in Red Wing.

Average Credit Score to Finance a Car

Many lenders break the spectrum of credit scores into five main categories: superprime, prime, nonprime, subprime, and deep subprime. While the average credit score to finance a car is 660, that’s simply an average. That means that one driver in Prescott might fall well below that average, while another in Zumbrota will be much higher than the average. Let’s take a look at how the five categories compare:

• Superprime (781 to 850):This is the highest credit score category, so you can expect these drivers to get approved easily with the best interest rates.
• Prime (661 to 780):This category contains the second highest credit scores, so most drivers in this range will also get easily approved for a loan.
• Nonprime (601 to 660):Drivers in this category are likely to get approved, but they will often get a higher APR than superprime and prime drivers.
• Subprime (501 to 600): Drivers in this category might have more problems getting approved, which means higher interest rates for those who do qualify.
• Deep Subprime (300 to 500): This category is the most difficult for approval. If you have bad credit, car finance options are harder to find – but, they are still out there!

Bad Credit Car Finance Options

So, what should you do if you fall into the nonprime, subprime, or deep subprime categories in Cannon Falls? You’ll need to do a little extra research. You could try in-house financing, or “Buy Here Pay Here” services. But, there are a few other venues to explore:

• Reduce Debts: If you can reduce your debt and highlight your improvements, you look more favorable to potential lenders. Try to pay off smaller outstanding balances if possible toimprove your credit score.
• Proof of Income: Provide proof of income or show a strong repayment record to help make a great case for yourself in the eyes of the dealership. Let them know that you’re serious about the sale.
• Down Payment: A sizable down payment is a great equalizer if you can swing it. If you can manage around 25%, you can improve your chances of approval while bringing down your monthly payments in the future. If 25% sounds too high, consider a less expensive vehicle.

Explore Your Bad Credit Car Finance Options at Red Wing Chevrolet

We’ve gone over the relationship between credit scores and auto financing approval, but there’s plenty more to discuss at Red Wing Chevrolet. Contact us with your questions or just stop by Red Wing Chevrolet to chat with our experts. Our finance team would be happy to walk you through some options, so you can get a great deal today. You can even apply for financing from home!