Low Credit Car Loans
Here at World Ford Pensacola, we understand just how much of a difference a vehicle can make in somebody’s life. Regardless of whether you’re an individual commuting to work, a couple living your dreams, or a family taking your kids to school, a car can be a deciding factor in happiness.
At our finance center, we’re committed to providing car loans for the drivers around Pensacola, Crestview, Fort Walton Beach and the surrounding Florida communities with less-than-stellar credit. Keep reading to learn how we can help out.
What Is Credit?
Credit is a way for you to purchase an item—in this instance, a car—without having the cash to pay its whole value. For the car-buying process, this is known as a loan.
When buying a car, your ability to take out an automotive loan depends on your credit score, which is determined by your credit history. Let’s take a closer look at these financing terms!
Credit Score
A credit score is a number that ranges from 300 to 850. This number lets lenders know how confident they are you’ll repay the loan. Depending where you fall on the credit scale, you may have an easier time qualifying for an automotive loan. The higher the number, the better:
- 300-629 range: Poor credit
- 630-689 range: Fair credit
- 690-719 range: Good credit
- 720-850 range: Excellent
Your credit is determined by your credit history. As you make payments and open new accounts, your credit score can increase and decrease.
What Affects Credit Score?
If your credit score can increase and decrease, what factors affect this ever-changing number? There are several things that can help to either raise or lower your credit score, including:
- Payment history
- Length of credit history
- Type of credit
- Credit application
You can check your credit score at any time to see where you currently stand.
Credit History
Credit History takes an in-depth look at the overall record of past payments, debts, and other types of loans. A responsible credit history will positively impact your credit score. On the other hand, a history of delinquent accounts and increased debts with minimal repayments could lead to a subprime credit score.
Can You Get a Loan With Low Credit?
While most lenders prefer a credit score of 660 or above, it is possible to get a loan with low credit. Typically, if you have a lower credit score, you’re more likely to see higher interest rates. For example, the average interest rate for someone with good credit—about 661-780—was 4.21% with new cars. For those with subprime credit—ranged 300-500—the average interest rate was 13.97%.
Additionally, if you have poor credit, you may need to make a larger down payment in order to purchase. Generally speaking, a down payment of at least 10% is required when purchasing a car with a lower credit score.
Getting a Car Loan With Low Credit
If your credit is less than ideal, there are a few key steps that you can take to get the best loan possible. Here’s what our financial team recommends:
- Find out where you stand. Check your credit history for free with Equifax®, TransUnion®, or Experian®. You’ll know more about your situation before you sit down with potential lenders.
- Do your best to fix your credit. We also encourage you to do as much as possible to take a breath and relax. No matter how low your credit score might be, there are ways to raise it. It’s honestly never too late to pay as many of your bills as possible, nor to start paying down your existing debt. Finally, try to avoid putting in multiple applications for new lines of credit simultaneously, as it’ll hurt your score.
- Save for a down payment. With a down payment up your sleeve, any negotiations with future creditors will be much simpler and faster. It might even help you to get a better rate, too.
- Get in in touch with financial experts. After shopping around for a bit, you’ll come to learn that the team at our finance center is here to help you through every step of your car-buying journey, regardless of what your credit looks like.
Other Tips and Tricks. We also urge you to consider adjusting the length of your loan, making a larger-than-normal down payment, or finding a co-signer. All of these strategies will help you to get a good loan.
Finance Department: Tools & Resources
We’re excited to lend any driver a hand—it doesn’t matter what your credit score looks like. After all, we truly believe that everybody should have the opportunity to get the car that they want. No matter your credit history, our team is here to coach you every step of the way.
In addition to offering on-site financial support, we’re proud to offer online assistance. This way, you can learn more about your unique financing needs prior to meeting with our team of experts. Some of our online tools include:
- Pre-approval application—Get a jump-start on the financing process by filling out this secure online application.
- Online payment calculator—View an estimate of your custom financing plan by adding the loan, down payment, and trade-in amount, as well as other basic information.
- Calculate your buying power—Learn about your buying abilities by letting us know how much per month you’re comfortable spending, your down payment amount, and other basic information.
- Sell us your current vehicle—Receive a firm offer for your current ride in five to seven minutes by filling out this simple form.
We’ve also created an index of specials, including new and pre-owned vehicle deals. You can browse these opportunities on our website. If you’ve served our country in the armed forces, we’d be proud to honor you with the Ford Military Rebate. Visit that page to find out if you’re qualified.
Get in Touch With Us to Explore Your Options!
All around Fort Pensacola, Crestview, and Fort Walton Beach, Florida, people who never thought they’d get a car loan are discovering that it’s more than possible to do so.
If your credit is less than ideal, World Ford Pensacola is your go-to dealership, so reach out to us today to see how we can help!
