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A low credit score can reduce your chances of getting approved for an auto loan. If you’ve been turned away at other dealerships because your credit score is too low, you still have options. Consider paying a visit to North Coast Auto Mall of Cleveland. Over the years, we’ve helped thousands of Cleveland drivers find approval with bad or no credit, and we can do the same for you. We’ve helped customers with even the lowest credit scores finance a car. Before you walk into our dealership, you may want to learn more about the credit requirements for car financing. In this guide we’ll cover why low credit scores affect your loan approval, and what your options are to get approved despite your low credit rating. To speak with a professional or to discuss your personalized financing options, contact our team at North Coast Auto Mall online or by phone.
When a bank, credit union, or dealership lends you money to purchase a vehicle, they bear the risk of not being repaid. Although they can repossess your vehicle if you default on your auto loan, they may still lose money if they’re unable to sell the car for the remaining amount you owe. To protect themselves from losses, auto loan providers take an array of measures to determine the risk you may pose, one of which is credit evaluation.
By reviewing your credit reports, a lender can more accurately assess your likelihood of defaulting on your car loan. If you have a high credit score, it means you have an outstanding track record of making loan payments on time. This proven history makes you a low-risk borrower and enables you to easily obtain a loan. On the other hand, a poor credit score may indicate that you’ve had trouble meeting your loan obligations. Therefore, a lender may have the impression that you may not be capable of handling another loan, which may reduce your loan approval chances. Your credit score not only affects your eligibility for auto financing but also may have an impact on the interest rate you’ll pay on your loan.
The minimum credit score needed for car financing may vary from one lender to another. Major banks tend to have more stringent credit requirements, whereas local credit unions, alternative lenders, and buy here pay here dealerships like North Coast Auto Mall may accept lower credit scores.
If you apply for an auto loan with a subprime lender, you may get approved even if your credit score is below 500. This loan type is called a subprime loan and has its unique requirements and payment schedules. To find a loan with a better interest rate, one would have a score of at least 660. This should get you an interest rate of 6% or below. With a credit score higher than 780, you’ll have a better chance of securing an interest rate of less than 4%
If your credit score is very low, the best thing to do is to seek financing from an in-house financing dealership, such as North Coast Auto Mall of Cleveland. We can work out an arrangement within our finance network so you can bypass the typical credit score requirements of banks or other institutions.
Having a poor credit score can limit your auto financing options at some dealerships, but it doesn’t make it impossible for you to get approved for a car loan. It’s important to note that auto loan providers also take other factors into consideration when assessing your credit risk, including your job, salary, and debt-to-income ratio. If you have a stable job, good income, and minimal debt, some lenders may be willing to overlook your credit score. You can also improve your odds of being approved for a loan by making a larger down payment, trading in a current vehicle, or getting the backing of a cosigner.
Additionally, you have the option of purchasing a car from a buy here pay here dealership. North Coast Auto Mall of Cleveland is one of the leading buy here pay here dealerships in the Cleveland and Northeast Ohio area. With our in-house financing program, we’re able to provide highly personalized auto loans for all kinds of car buyers. Whether you have bad or no credit or need refinancing, our finance experts can work with you to come up with a financing solution that’s perfect for you. As a direct lender, our dealership offers competitive interest rates for all types of auto loans.
Don’t let your poor credit score stop you from owning your dream car. Come to North Coast Auto Mall of Cleveland for the best deal on a bad credit car loan. Contact us online or by phone to speak with our friendly and knowledgeable finance experts or visit our dealership on Brookpark Road to start your conversation in person.
North Coast Auto Mall of Cleveland, Brookpark Road, Cleveland, OH, USA