If I Have a Credit Score of 500, Can I Get Approved to Buy a Car?
Needless to say, a credit score of 500 is low. If this is you, then you’ve most likely had a really tough time getting approved for a car loan to buy a vehicle. Local dealerships have probably given you a credit application and told you that they’ll “see what they can do for you”. Those calls rarely ever come.
There are sources that can help though.
Companies that provide auto financing specifically for people that have low credit scores are the answer. You may find some in your local area. There are some sub-prime lenders that help folks that have really bad credit to get into cars. Some are online, too.
You may have thought about going to a “buy here, pay here” car lot to get a car. Many people that have low credit scores like that turn to dealers that promise guaranteed auto finance. They usually end up paying way too much for the vehicle though, and the interest charges can be as bad as a payday loan. Not a good option, but if you want to go that route, obviously it’s your choice.
My suggestion would be to take a look at some of the sub-prime lenders that are available on the internet. There are good companies that provide real car loans for people that have really low credit scores. You’ll find that the application process is much simpler and more hassle free than dealing with dealer after dealer filling out multiple credit applications.
Some sub-prime lenders offer programs with no money down, and approvals for payments based on your monthly income. This can be a great way to get approved without getting stuck with a cheap, over-priced car from a “buy here, pay here” car lot. No doubt, it sure is easier.
You may want to take a look at http://www.MyCreditTree.Net/. You can see if a lender is available to approve you in your local area with just your zip code and monthly income amount. You may be surprised at what has been hiding under your nose the whole time.