Auto Finance Approval at What Credit Score?

Most rejected auto finance applications carry the same question that is what thing was missing from their application that led to the rejection of financing. Well, a few years back that thing was entirely the credit score of the applicant but the things have changed now and it is possible to get approved for auto finance with less credit score. However, people still wonder what changes were there in the mentality of lenders and what is the credit score approved by banks. The following lines provide information on the credit score demanded by banks and what is the present demand on credit score for approval of auto finance.

The credit score required by lending companies and banks a few years back was 610 or more. The maximum a score can go is around 700, which is why a range of above 600 is considered to be the prime credit score range for the loan approval. At this credit score, the banks and lenders didn’t pose many questions and doubts regarding the applicant’s ability to carry the interest rate as well as the finances. However, as aforementioned this all changed due to the increase in the lending completion, introduction of online lending and the recent economic doom.

Now, it is possible to get approved for the finances at any credit score because of the sheer number of online lenders. Now, there are a number of lenders who provide finances without a credit check. Just an employment proof is necessary to get approved for the auto finance. The credit score set by most credit unions and lending companies is 480 to 500 and some companies often go till the 450 mark if the lender can bring a cosigner or provide a good down payment. This score assures that the loan would be approved easily and the auto finance borrower would get a decent interest rate.

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