Auto Loans for Bad Credit

When it comes to auto loans, there are several factors that can determine eligibility. While some lenders may have a minimum credit score requirements, most lenders prefer to look at the total deal to determine if it’s worth it. As an example, if you have bad credit, but are using a $5,000 down payment, the lender may have a good equity position in the car. Therefore, if you default, they will likely be able to recoup funds. As a result, they may be more willing to approve the loan, regardless of credit score. We encourage borrowers to check credit before applying for a loan to identify ways to improve their score. The better your score, the better your chance of approval. 

Getting an auto loan with a 500 credit score may be hard, or it may not be. As we’ve mentioned, there are several factors that come into play when it comes to approving auto loans. While a 500 credit score is bad, there may be ways to increase your chance of approval such as a down payment or cosigner. 

To qualify for a $30,000 auto loan, you will need sufficient income and a decent credit score, amongst other requirements. Some lenders will want to see a credit score higher than 660 for a loan of this amount, but requirements can vary. 

Acorn Finance offers a platform that allows consumers to explore personal loan options from top national lenders. Our platform puts the borrower in the driver seat as lenders compete for their business. While a personal loan is not always the first choice for financing a car, there are some situations where it’s preferred. Inexpensive or older vehicles may not qualify for traditional auto loans. Therefore, a personal loan may be a viable option for financing. Personal loans can also be used to come up with cash for down payments.