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Like with other types of loans, your credit score may play a role in your ability to access a car loan. Lenders examine your credit rating when you apply for a car loan and a low credit score may impact the type of loan you can get, just like a good one can increase your chances.
But don't worry, the Finder app has your problems solved. Our feature lets you find out which personal loans you're likely to get approved for before even applying. Simply download the app, connect your credit score, and automatically see which you might be approved for.
Read on for more helpful information on how to improve your chances of getting a car loan and why your credit score is important.
The Finder app uses your credit score to help determine how likely you are to get approved for some personal loans. Try it out today and get that car easier! Pop in your phone number below to get your download link.
By submitting your phone number, you agree to the Finder privacy policy and terms of use
Your credit rating will directly affect your ability to access most loans and car loans are no different. It is normal for banks and lenders to check your credit file during the application process before they approve you for a car loan. If you have a bad credit file or any negative marks on your file, this will classify you as a risky borrower and will significantly limit your options for accessing credit. Lenders like to know they are lending money to someone who has the capacity to repay back their loan, so if there are any marks on your file that indicate you may not be able to do so, this will limit your access to a car loan.
If you do have bad credit, there are still some car loan options available that can help you buy a car:
If you do have a bad credit rating, there are some ways you can improve the chances of being approved for a car loan.
If you're looking for a car loan and you have bad credit, you may want to consider the alternative options on this page. To help your application, you may also want to start repairing your credit so you look more favourable to lenders. The benefits of a good credit score include receiving the standard interest rate, rather than a higher one, and access to a higher loan amount, so it's worth looking at the ways you can fix your credit rating.
A car loan works just like any other loan except it is designed specially for those purchasing a car. The financial lender will lend you a certain amount of money to purchase your car and you agree to pay back the amount plus interest over a fixed term.
There are a few different options on how you want to structure your car loan. You can set out how much you need to borrow, your loan terms, length of your loan and how frequent your repayments will be. Your car loan will also come with an interest rate which will stipulate how much interest you will need to pay on your car loan.
You can also select either a secured loan, where the vehicle or another asset is used as security against the loan, or an unsecured loan, where no security is required but you will generally pay a higher rate. Different types of car loans may also have certain criteria that you will need to meet. For example, if you're buying a second-hand car, there could be an age limit for the vehicle.
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Hi when applying for a car loan what is considered to be a good credit score please
Hello Ejm,
Thank you for reaching out to us.
You may check this page for the specific score range of what is considered a good credit score. Kindly take note that most Lenders will also check your Credit Report to ensure that you do not have many active credit accounts. It is important that you keep your Credit Report updated as your Credit Score will also improve along side with it.
I hope this helps.
Let us know if there is anything that we may assist you with.
Cheers,
Ash