Low credit is generally defined as a credit score less than 630. You can have a low credit score for a variety of reasons, including a pattern of making late payments to lenders, the results of identity theft or simply not having enough years of credit history. Your credit score determines the interest rate you pay on your car loan, and a low score typically means a higher interest rate.
The good news is you aren't necessarily destined to pay a high interest rate on your auto loan for five or more years just because your credit score isn't perfect. This guide will help you learn how your credit score affects your car loan and find options for getting a car loan with affordable payments if you have bad credit.
A Few Tips On buying a car with bad credit
1. Ask yourself how badly you need a car 2. Check your credit report
3. Limit your search to a two-week timeframe 4. Look for newer versus older vehicles 5. Get preapproved 6. Consider getting a cosigner