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Posted in Auto Loans
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Question By
dee1001

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what credit score is needed for an auto loan?
what credit score is needed to be approved for an auto loan?
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Every bank has different qualifications. There is no good answer for this! I would say if you score is 580 or higher you can get a loan but the interest depends on the bank qualifications there all different. Start with Honda and Toyota. Ally financial does GM and Chrysler and they are a pain. Ford wont touch you if your under 640. Even with a low score there are banks that wont drain you. Shop around. Like I said Honda Financial and Toyota Financial services are you best bet with a 580 to 640 score if you have good credit then look at GM or Chrysler which is Ally financial and if your credit is perfect look at Ford. Its a hard question to answer. Honda Financial is the easiest bank to get financed buy though!

Reply by
zachary1234

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Helpful to 594 out of 621 people

Working in the buisness I worked for nissan and you needed average credit 620 or so for nmac to look at you. A good buddy of mine works at honda and I know for a fact put a 530 person in a new honda civic thru honda finacial with 11.99 interest. The customer was someone i didnt have a shot getting done at nissan but my buddy got it done at honda. I always send people i cant get done to my buddy and he comes thrue 90% of the time. But understand credit in the 500s is a 12 to 24% interest zone. Being in the biz and what ive seen Toyota Financial and Honda Financial look at more then the score and are easier to get financing thru.Capital one is a secondary finace company SDCARMAN's and therefore has nothing to do with Honda FInancial or Toyota Financial. Capital one has there own qulifications like 580 score and a 2400 dollar month income requirement and no bankrupcies in the past to years. But toyota and honda financial is looking at payment history and will be very relaxed when it comes to credit score. I guess what im saying is if your score is 530 but they see you pay your bills but they tend to be late. Its what they call slow credit no collection you pay but the payments are late thats why your scores low then the likelyhood they will pick you up is high with honda and toyota financial. With Ford motor credit and ally this is not the case scores low denied! Cap one denied ect....So thats why i said toyota and honda financial services cause they look at the whole picture and base their decision on that, while others ford motor credit and ally see you as a number only and dont look at everything. So in conclusion coming from a guy 15 yrs in the buisness 580 to 640 score Honda financial and Toyota financial services are your best bet to get a 90% gauranteed approval.

Reply by
Lomarsmom

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Helpful to 145 out of 155 people

I only have "Fair" credit and twice I have received low-interest loans from American National Bank out of Omaha, NE. Check them out!

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296 People Helped

My car buying/refinance journey

Helpful to 296 out of 313 people

Idk if this will help anyone but here goes... In September 2013 my old car went kaput! I was desperate for a new(er) car so I went on Cars.com and narrowed it down to a few cars. I checked th out and settled for a 2011 ford focus (nothing fancy) for $10995. My score, according to the dealer was 573 (transunion) I got approved by capital one auto with an 18% APR and had to pay 1,000 down. Payments were $262 for 73 month... Ouch! A few months later (jan 2014) I went through my long time credit union I was planning on putting $4,000 towards the principle and rolling the remaining to the CU, but alas they declined me. Last month (Feb 2014) I went to a different credit union. I made an appointment and went in person to speak to a loan officer. I explained what I wanted to accomplish (putting $4000 towards principle, lowering payment) with her and she pulled up my credit report in front of me looked it over and asked me questions, finally she pulled my score 640 (transunion) and said that everything looked good. Next day she called that I was approved. Went in to the bank again and signed my new loan 6.74% APR 60 months at 186 a month! I did it for 60 only because you never know what hardships may occur but I'm planning on paying at least an additional $1,500 per year on top of my normal payments to complete paying it in about 3 years. So from bad deal to good deal in 5 months. It's possible you just need to work on your credit and pay, pay, pay! My score is proof of that 573-640 in 5 months! Oh by the way score on credit karma shows 614 so it's lower than what the CU shows due to the different models used I suppose

Reply by
mjrkx250

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Helpful to 77 out of 88 people

The banks and credit unions use a different credit score than you would get on KC or any other credit score site. They use one specifically for the auto industry, at least most do. It will almost always be a little lower, for two reasons. First it's that way by design, it allows them to get away with charging a higher interest. Second reason is also by design, they put more weight on some things in your credit history and less on others. 

Also, if you shop around, do it all within a day or two, that way you don't get hit with multiple hard credit inquirers that will hurt your score.

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Leasing is not buying

Helpful to 423 out of 473 people

Why would anyone take out a loan to lease a car? You're borrowing money to give away money on something you can't keep.

How I bought a new-used car from a dealer:

1. Research, reasearch, research. Study all the little dealer tricks and prepare for them in advance.

2. Trade in your old crappy car, if you must, but you'll get more momey if you sell it yourself. The dealer will want a grand or two down in any case.

3. Make it about the APR, not the monthly note. They will pad either as much as they can. Far better to get a slightly higher note at a low interest rate than a "cheap" monthly note at a high interest rate.

4. Be prepared for the "yo-yo" game: 30, 60, even 90 days after you buy, and try and try to register your car, you'll get that call claiming, "There was a problem with your financing..."! Be prepared to return the new car 100% clean and demand your old car and money back. They will find a way to accommodate you, believe me.

5. Remember, when you buy a car on credit, you own the note, not the car. If you pay off the note, then you own the car, even if that's six years later. DO NOT sign a six-year note unless there is no other way and all other conditions above apply. NEVER sign a seven-year note. Ever. That's insane.

6. The first chance you get to pay off your note, do it. Take the temporary score hit.

7. Drive the car into the ground. If you chose wisely, it should last 10-15 years or longer with proper maintenance. By then, you should be able to save enough money to pay cash for any car you want--preferably not from a dealer.

Reply by
HateCarSalesman

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Helpful to 327 out of 338 people

Now here is a person who knows how to purchase a car ...

I would like to add one additional bit of advice.  On your down payment put the least amount the Dealer will accept.  As long as you have the Terms ie:  Payment/Month, Interest Rate, & Length of Loan/Years.  Put any additional funds you have towards your first payment (directly towards the Principle).  The Dealership takes most of the money from down payments   as profit it really doesn't help your deal.  It's how they structure the front & back end of deals.

Enjoy your car.

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It all depends

Helpful to 210 out of 224 people

I just financed a car one month ago with a 585 (which is a huge improvement from my sub 500 score a year ago). I did'nt get the best interest rate, but that's the price you pay when you have poor credit and no money to put down. I put $500 down and received a 14.74%. Fortuntaely I havent missed or had a late payment in 18 months and only one credit card with a low balance.

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Helpful to 115 out of 121 people

make sure you get refinanced, when i was 20(2010) i bought my first vehicle, dropped out of college for a great life choice, 10.xx% interest, i got it refinanced 1 year later and now got 3.65% APR.  just make on time payments and you can drop it nice, and build your credit.

4 Contributions
106 People Helped

620 credit score

Helpful to 100 out of 103 people

That was my credit score almost 2 years a go i bought a 19k suv with 3000 trade in and 500.00 cash as a down and i was picked up by Toyota Financial at 8% interest my payments are 350.00 a month...i have never been late or missed a payment and my score is climbing.  If i buy again it will be with Toyota Financial there amazing :)

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