600 Credit Score For Car Loan – Is it Good?
An auto loan is type of a money credit facility that you get from a bank in order to purchase a vehicle. The length of an auto loan is typically from 3 to7 years during which the beneficiary is required to pay back the amount in small installments. Any borrower with a good credit history usually qualifies for better loan packages that include lower interest rates and overall lesser payments. As far as the payments are concerned, these are usually in fix amounts throughout the life of your loan. Besides from the installments, a lump sum amount is also required from the borrower as a down payment. It is usually 20% of the actual amount of the vehicle.
If you’re worried that your credit score might keep you from buying your dream car, you must know how willing the dealers are to sell a car the moment a customer steps into their shop. According to a recent research, more than 20% of car loans go to borrowers with credit scores below 600 therefore, all those with income issues need not to worry. There is always a dealer available in the market who can and will sell his car to you regardless of the credit scores.
Is it difficult to get approved for an auto loan with FICO score of 600?
Even though the ideal credit score to buy a vehicle is somewhere around 713 for a brand new car and 656 for a used car. Still, some cases have been found out in which car loans have been given to people with scores below 500. All you need to do is find the right market and dealer for yourself and you can buy anything you want. The rate of interest might fluctuate due to your bad credit scores but things can’t get worse than that.
All those on 600 credit score are standing on a thin line because it’s always a 50 50 chance for you getting a good deal. You will always find a deal but whether it’s good enough to be prolonged for 3 to 7 years is a question that usually arises in the minds of the borrowers. To be exact, almost 10 percent of the credit scores fall in the 600-649 range therefore, there are millions others like you waiting in line for a good deal. If you have a bad credit score, you should definitely have the people’s skills to talk with the dealers. Just talking with confidence and knowing your shit makes a huge difference sometimes.
Some dealers might even increase your upfront amount as collateral just because of your poor credit score. But be advised that even if your credit score is bad but your monthly income is good, you can and will get an auto loan for your dream car. Just make sure to have the right kind of paperwork with you at all times and you should be good with your car shopping.