Need a car? Has your credit seen better days? Then you will probably need to find subprime auto lenders willing to accept your credit. Fortunately, we specialize in connecting auto loan applicants to lenders who work with subprime credit. By partnering with subprime auto loan lenders all across the nation, we maximize your chances of getting approved. When you apply online, our sophisticated system places your application with the best lender for your personalized needs. Matching criteria include:
- Your Location
- Your Credit Score
- Your Down Payment
- Your Debt-to-Income Ratio
Ready to get started? Click here to apply online.
What is Subprime Auto Financing?
For starters, let’s talk about credit scores. They fall in a range of 300 to 800. The average credit score in the United States is about 680. Credit scores of 620 to 679 are generally classified as “subprime.” This is simply means it falls below the “prime” credit range of 680 to 720. Additionally, credit scores of lower than 620 may also be categorized “subprime,” “deep subprime,” or simply “bad.” Typically, a person who need a subprime auto loan has issues on their credit record such as:
- Limited Credit History
- Delinquent or Unpaid Debts or Bills
- Limited Collateral to Secure the Loan
- High Amount of Existing Debt in Relation to Income
Most banks and captive auto finance companies will be hesitant to approve auto loans for people with subprime credit. After all, they want to make sure that the candidate is likely to pay down their car loan. If their credit report seems to indicate otherwise, then they become a risky investment for the auto lender.
However, reports now indicate that about 40% of Americans have subprime credit. For this reason, subprime auto lenders have become a popular alternative to traditional banks. They cater to people with less-than-perfect credit.