When trying to qualify for a car loan, there are several different aspects you need to consider. While having good credit can help, lenders consider other criteria when determining whether to approve your application. Having a good credit score and history is critical if you're think getting approved for a loan with decent terms. In general, a good credit score ranges from 670 to 739, and a higher score is even better.
You don't need good credit to get an auto loan. Several auto lenders specialize in working with borrowers with bad credit. To get an auto loan with bad credit, take your time shopping around to find lenders that offer pre-approval and can give you relatively decent terms. Also, try to have a reasonable down payment or trade-in value to help reduce the amount you need to borrow.
In all types of credit applications, the information requested is usually the same. A Lending evaluation will be based on a hard credit inquiry that details borrowers' credit score and credit history. In addition to credit scoring, lenders also tribute loan decisions on a borrower's debt to income. Typical lenders will generally look for a credit score of 650 or higher with a debt-to-income ratio of 35% or less. Each lender, however, will have its standard for credit underwriting and credit approval.
The auto loan pre-approval process allows a lender to run a soft credit check and review your credit report to determine your likelihood of getting approved and what interest rate and other terms you might qualify for. If a lender doesn't pre-approve you, then you know not to waste your time applying.
Contact Metro Chrysler to learn more about finding the perfect car loan for your needs. You can apply for our secure online finance application directly through our Finance Centre for fast pre-approval.
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