Securing a car loan can seem like an insurmountable challenge when you have poor or no credit. A car is an essential part of most people’s lives; without it, it becomes difficult to get around. Fortunately, options are available. We will cover the minimum credit score for a car loan, how used car dealerships like Drive Now can help, and how you can improve your credit score.
What is the Minimum Credit Score for a Car Loan?
It’s no secret that a good credit score is vital when getting approved for a car loan. The minimum credit score for a conventional car loan ranges from 620 to 650. However, you may be looking at a higher number if you have poor credit. Some lenders have a minimum credit score requirement of 700 or above. These requirements can make getting a car loan challenging but don’t worry. Used car dealerships like Drive Now offer loans to those with poor or no credit.
How Used Car Dealerships Like Drive Now Can Help
Used car dealerships like Drive Now specialize in working with people who have poor credit. They understand that not everyone has a perfect credit score and have tailored their lending criteria to reflect that. They don’t rely solely on credit scores but look at other factors affecting your ability to repay the loan, such as your employment status, income, and debt-to-income ratio. This approach makes it easier for customers to secure car loans, even with poor credit scores.
Improving Your Credit Score
Securing a car loan with poor or no credit can be the first step towards improving your credit score. When you make timely payments on your car loan each month, you show lenders that you’re a responsible borrower. This, in turn, could lead to an increased credit score. Additionally, if you work with used car dealerships like Drive Now, who report to credit bureaus, they could help improve your credit score.
At Drive Now, we report all our loans to the credit bureaus. This means that if you make timely payments on your car loan, you’ll improve your credit score. Additionally, as your credit score improves, you may be able to refinance your car loan with better terms. This will save you money in the long run and could result in a lower monthly payment.
Securing a car loan with poor or no credit may seem challenging, but it’s not impossible. Used car dealerships like Drive Now specialize in working with people with poor credit and can help you secure the car loan you need to get back on the road. Not only will you be able to get the car you need, but by making timely payments, you’ll improve your credit score in the process. So, if you’re in the Phoenix, AZ, area and are in the market for a new, used car, contact Drive Now today. We’re here to help!