Easterns Blog

Building, strengthening or repairing credit is not a fast process. It can take years of making monthly payments and gradually increasing your credit limit to fix. Unfortunately, many people have an immediate need for dependable transportation and can’t afford to wait that long.

At Easterns Automotive, we understand the stress our customers are under and have helped hundreds secure the loan they needed to afford a certified pre-owned, thoroughly refurbished car. We’ll provide you with tailored strategies you can utilize to not only improve your chances of getting approved for a bad credit auto loan but also finding the loan with the most competitive interest rate possible for your rating, a flexible repayment schedule and no prepayment penalties.

What’s the Lowest Credit Score for an Auto Loan?

Typically, you need a credit score of at least 600 to qualify for a car loan. Some subprime lenders may accept 500 depending on your personal situation, but you’ll likely have a high interest rate. You’re more likely to be accepted if you buy a certified pre-owned vehicle instead of a new one, as you’ll be paying less and taking on lower insurance and registration costs without compromising on quality.

Certified pre-owned cars have been thoroughly refurbished and have a manufacturer-backed extended warranty, unlike used cars that are no longer under warranty. Car shoppers looking to spend less initially and over time on an auto loan can benefit from a certified pre-owned vehicle from Easterns Automotive. Our maintenance team certifies each of the hundreds of cars in our inventory to ensure its long-term value.

How to Increase Your Chances of Being Approved for a Car Loan

• Show Proof of Stable Income: Showing you can afford the monthly loan payments is crucial. Gathering pay stubs, tax returns, bank statements, a letter of employment (especially if you’re newly employed) and more will verify your financial stability.

• Correct Credit Report: Any errors in your credit form, whether it’s as insignificant as your name being misspelled or as major as a payment incorrectly marked as late, can damage your loan application’s credibility.

• Reduce Your Debt-to-Income Ratio: Paying any existing debts or increasing your income – whichever you can do on an expedited timeline (but ideally both, if possible) – can bolster a lender’s confidence in your ability to procure monthly payments.

• Improve Your Credit Score: Paying your bills on time and reducing your credit usage is one of the faster ways to boost your credit score. A slightly higher score shows effort and dedication that a lender will appreciate.

• Save for a Down Payment: Saving for a larger down payment – even just 10 percent of the car’s total purchase price – can reduce the amount you need to borrow, consequently elevating the likelihood of your application being accepted.

• Research Your Lenders: Different lenders will offer different rates. We’ll research and compare banks, credit unions and lenders to help you find the most competitive rate for your credit situation.

• Set Realistic Loan Terms: We’ll work with you to figure out an ideal loan amount and timeline that’s low risk for lenders and high reward for you.

• Enlisting a Co-Signer: If you’re worried that your credit score or credit history may bar you from securing a loan, having a co-signer with good credit can bolster your application.

• Avoid Applying for Multiple Loans Simultaneously: A loan application has the potential to temporarily lower your credit score since it involves a hard inquiry into your credit. This means that filing for multiple loans can cause your credit score to appear lower than it should be.

#1 Certified Pre-Owned Car Dealer That Doesn’t Judge Buyers Based on Credit Scores

You can save even more on a car without sacrificing quality at Easterns Automotive. We offer competitive prices on pristine certified pre-owned vehicles that are often like-new or only a few years old in order to deliver maximum value on your investment.

No matter what your credit score is, we’ll do everything in our power to help you get a reliable vehicle at a great price. We’ll put our knowledge and expertise to work finding the perfect pre-owned car that has everything you want in a vehicle for less.

Explore our flexible financing options and learn more about how we can help you secure a dependable, certified pre-owned car today.