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Car dealerships rely on credit scores to determine if customers are eligible to receive a car loan. But what credit score do they use? What is your likelihood of approval? And what happens if you have no/bad credit? Our team at Car-N-Credit is here to answer all those questions and more!

What Credit Score Do Car Dealerships Use?

When purchasing a car, most car dealerships run your credit score to determine if you are eligible for a loan. These scores come from a variety of different credit bureaus (TransUnion, Equifax, and Experian) that collect data from creditors. Based on the length of your loan, the remaining balance, the payment history, and the monthly payment, you are given a credit score. This credit score is a measure of how “risky” it is to offer you a loan. Most car dealerships use the FICO Score 8 scale to determine your eligibility for a loan.  

The FICO score is the most widely used because it is considered to be the most accurate assessment of your credit standing. It takes the scores of all three major credit bureaus to create a FICO score. Based on your score, a car dealership will make the terms of your loan—this includes loan length and APR.

Likelihood of Loan Approval

When it comes to car dealerships, your credit score is a large factor in determining if you can get a car or not. If you are unable to pay for a car in cash upfront, most car dealerships will rely on your credit score to determine if they will offer you a loan. If you are unable to get a loan then you will be unable to get a car. So, let’s break down what score you would need to get a car loan. The FICO score ranges from 300 to 850. 300 is considered a bad score and 850 is considered an excellent score. 

• 850-720: Super Prime score—you will receive a loan
• 749-660: Prime score—you will likely receive a loan
• 659-620: Not Prime score—your options may be limited
• 619-580: Sub Prime score—options are severely limited, may not be offered a loan
• Below 580: Deep Sub Prime score—Likely will not receive a loan

Your likelihood to be offered a loan are very dependent on your credit score. It is possible to get a loan in the subprime and deep subprime areas; however, it is very difficult and your APR will be very high. 

Loans at Car-N-Credit

At Paul Sherry Car-N-Credit, we understand the difficulty of purchasing a car with a low credit score. We know that things happen and your credit score may suffer as a result. We believe you are more than a number. That is why we don’t pull your credit score. Our financial team works with you to find a used car that fits your budget and your lifestyle. We even take it a step further and work to help your credit score. So when you purchase a car from us we report your on-time payments to TransUnion. This can increase your credit score and get you back into good financial standing.  

Purchase a Used Car from Car-N-Credit

When you purchase from Car-N-Credit, we don’t rely on your credit score like other dealerships. We look at the bigger picture. Our financial team can help you get into a used car that fits your budget and needs. Contact our friendly staff to see how we can help you get into a used car. We offer a variety of loan options to customers located within 60 miles of our dealership. Our wide selection of vehicles makes it possible for you to find a car that works for you. So, come on down to our dealership in Piqua, Ohio and browse our inventory, or call us today at (937) 773-0895 for a bad credit car loan!