Buying a Car with Less Than Perfect Credit
It’s no secret that if you have a low credit score, everything from buying a home to getting a credit card is harder. So, how does a less than perfect credit score affect the car buying process? At Tiger Autoplex, we don’t think that a credit history that isn’t pristine should keep you from driving a quality used vehicle that you can count on for years to come.
What is a credit score?
You credit score is a number calculated based on your credit history to determine risk for lenders. When it comes to the FICO credit score, low credit is usually considered to be anything less than 629, while pristine credit is 850. People with higher credit scores have a better chance of getting good interest rates on their car loans, while those with very low interest rates risk not getting an auto loan at all.
What factors determine my credit score?
Your credit history includes credit cards, student loans, auto loans, and mortgages. Your FICO score accounts for your payment history, including late payments and defaults, as well as how long you’ve had accounts open, how often you use them, and how many lines of credit you have. Your payment history is weighted higher than other factors.
How does this affect car buying?
If your credit is lower than optimal, lenders may view you as a higher risk client and assign higher interest rates to your loan or not give you a loan at all. Of course, credit isn’t the only thing that lenders look at. They also consider your income, your work history, and your current employment status before making any decisions.
Why choose Tiger Autoplex?
At Tiger Autoplex, we don’t think your credit situation should hold you back from driving the car you want so we offer great financing options for all credit situations, including competitive interest rates and flexible payment options. Plus, our financial manager is fluent in English and Spanish.