Credit Profiles & Car Loans
Bad credit comes in many shapes and sizes. In fact, nearly half of the US adult population has experienced credit problems to some degree.
As it relates to car loans, credit scores and customer profiles generally fall within the following categories:
- 700 and above: Excellent or prime
- 650 – 699: Good or near prime
- 575 – 649: Fair or non-prime
- 525 – 574: Poor or sub-prime
- 525 and below: Bad or deep sub-prime
Although pricing may vary (interest rate charged) on near prime and prime credit buyers, this universe of people generally qualify easily for auto financing. People that fall into the 575 – 649 category can usually find auto loans through traditional sub-prime auto finance companies and banks provided other factors are in play such as stable employment, minimum qualifying income, no repossessions in the last 12 months and some type of paid as agreed credit account on the bureau. If a person’s credit score is below 575, options for auto loans drastically begin to dwindle and it is in this niche that CarLotLoans provides car loans for people with bad credit through its network of buy here pay here car lots.
Helping People With Bad Credit
CarLotLoans was established to help people with bad credit more easily find auto dealers active in BHPH or in-house car financing. While not everyone is guaranteed to get a car loan, buy here pay here dealers are willing to work with some of the most credit challenged customers.
Some examples include:
- Multiple bankruptcies
- Open bankruptcies including Chapter 13’s
- Multiple repossessions
- A recent repossession
- A FICO score of 525 or less
Although you may not get the car of your dreams, you could get transportation and an opportunity to begin reestablishing your credit.
Qualifying for In-House Financing
While each buy here pay here dealer is unique in the way it operates, there are minimum lending criteria that need to be met in order for you to get approved for financing. The good news is that your credit score and the quality of your credit isn’t much of an issue here. Instead, it’s a matter of stability.
Most BHPH dealers are more concerned with the length of time you have been employed at your current job and how long you have lived at your current residence. They need to know you have at least $1,200 in monthly income coming in and that you live near enough to come in-person on a weekly or bi-weekly basis to make payments.
If you have been turned down for an auto loan, if your FICO score is 525 or less, if you’ve had more than one bankruptcy or if you’ve had more than one repossession, don’t become overly anxious. Our participating buy here pay here dealers specialize in providing car loans for people with bad credit – even extremely poor credit. Apply today and you could drive away in your new car tomorrow.