What Credit Score is Needed to Finance a Car?

Dealership Finance Professional signing documents

If your credit score isn’t as stellar as you might like, you might be worried about being able to finance a vehicle in the Sharon area. However, you may not be out of luck! The average credit score of drivers who procured auto loans in 2020 is 721 for a new vehicle and 657 for a used car. Still, you should know that Hubbard-area drivers most likely will qualify for bad credit car finance loans — regardless of their credit history. 

Here is a breakdown of the different health categories for credit scores:

  • Superprime: 781 to 850
  • Prime: 661 to 780
  • Non-prime: 601 to 660
  • Subprime: 501 to 600
  • Deep Subprime: 300 to 500

Keep in mind that the lower your credit score, the higher interest you’ll pay. Learn how you can secure the most favorable financing rates below with Shenango Honda’s finance team!

How to Get Car Financing With Bad Credit 

So, what credit score is needed to finance a car? It will depend on the model you have in mind, the lender (like bank vs. dealership), and other factors. Mercer drivers with a deep subprime credit score can still secure bad credit car finance loans, but they’ll need to bear in mind the following:

  • Focus on Positives: If you can demonstrate that you’ve made positive financial actions, you’ll increase your odds of securing a loan. For example, if you’ve never missed a credit payment, but your credit score has been marred by business debt, you’re in a better position.
  • Bring Proof: Bring pay stubs, proof of address, cell phone bills, auto insurance documents, and proof that you’re currently working. Any document that can show you’re responsible and you’re in a position to pay off your car loan despite your credit score will help. 
  • Show Collateral: If you own a home or are able to put down a substantial down payment (at least 25%), you’re far more likely to qualify for auto financing and get a good interest rate to boot.
  • Improve Your Credit Score: If you can put off getting a car for now, you can work on your credit first. Start by checking your credit reports to see if there are any mistakes. Then, assess your debts and create a payment plan to start paying off your debt. You should also minimize new credit applications and open a credit card to build credit, especially if you don’t have any to start with.

Discuss Your Options With Shenango Honda

Still interested in pursuing bad credit car finance in the Hermitage area? Shenango Honda can help you out! Contact us to set up a meeting with one of our finance specialists today! 


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