Is There a Minimum Credit Score Needed to Buy a Car With Bad Credit?

Posted by Credit Financing Guru

What may come as quite a surprise is the simple fact that there is no minimum credit score that you need in order to buy a car with bad credit. There are requirements that you must be able to meet and there are good companies online that can help you to get into a vehicle, without regard for your actual credit or “beacon” score.

What are the requirements in order to be able to qualify for a car loan with bad credit through these types of companies?

First of all, you must be at a minimum, 18 years old. That’s going to be anywhere that you try to get a loan because of simple laws regarding contracts. You can’t enter into a legal contract until you are of “legal age”.

Secondly, you must have a minimum monthly income of at least $1500.00 per month. At least $1700.00 per month is ideal, although $1500 is acceptable. To calculate your monthly income, multiply your weekly gross pay (before taxes) and multiply that number by 4.2 as there are slightly more than exactly 4 weeks in a month.

Third, you have to have a steady income. Whether it is from a job, disability or retirement income. If you are self-employed, you’ll have to be able to substantiate your income by providing previous year tax returns.

Finally, the issue of repossessions and bankruptcies are always important. If you have had a bankruptcy of any type, whether Chapter 7 or 13, it must be discharged. The only exception to this rule is if you are in a Chapter 13 and have written permission from the court to incur debt. Cars are necessities so that is frequently allowed.

On the subject of repossessions, if you’ve had one there are two conditions. One is that it has to be at least 12 months ago that the repo took place. Or, if it’s been within the last 12 months, then it must have been included in a bankruptcy. If you’ve had a repo recently and it wasn’t included in a bankruptcy proceeding, then you won’t be able to obtain financing.

You don’t have to use buy here, pay here financing to get a car loan if you have bad credit. There are companies that provide financing services to people that have had any number of credit problems. Many of these companies help people without taking into account their actual credit score. Credit scores are nothing but a computer generated estimate of your credit worthiness. Companies that work with bad credit on a regular basis look beyond that number and see you as a person, taking into account your situation.

Here’s a place you may want to visit to see what you can get approved for. has helped thousands of people to obtain auto loans with low credit scores.

I’m Jason Lanier and thank you for reading.

Credit Score FAQ:

Question: Does taking a loan out for a used car improve your credit score?
Right now my score from experian is 636; and that’s only because I’m paying off an old debt. I need to buy a car, but I don’t know if getting a loan for a used car would be a good idea.

Answer: It’ll improve if you pay on time. Your score will go up based on credit line available to you… again as long as you pay on time.

Question: My husband is trying to buy a car and is telling me my bad credit is affecting his ability to buy a car. True?
I have been trying to pay off my credit card debt for a few years now. This was all attained before I even met him. I have paid off about 6 creditors and am down to the last 4. I’m expecting to pay them off all next month. Hubby is telling me that my credit is affecting his credit score and he’s having trouble buying a new car. Is this true? He keeps trying to get my bank statements and trying to run a credit report on me.

Answer: If your credit card debt is in your name only and was acquired before you were married there is no possible way for it to be affecting his credit even if you live in a community property State. Why is he using your credit for a car? I was married, bought a car, and never did I need my husband’s credit to get a car. Something is wrong. Perhaps he is having trouble getting credit on his own, so they asked for your credit.

Question: What can I do with a credit score of 629?
I’m 19 and have a credit score of 629. I use to be up to like 720, but my credit card went over the limit. (Paid it off, but it seems it hasn’t updated yet on the credit score.) Anyways, I make money on my own at the house by selling items online. If I were to buy a car for 2-5k, would I be able to get financed? Like get a loan from the bank or something, and just pay them back month by month?

Answer: The short answer is no way without a parent co-signing. You have not been in the credit bureaus long enough, you can not prove your income, you don’t the number of established trade lines required, you can’t have the payment history required, your self employed and not for long enough, the amount your looking to borrow is well below every major lenders minimum. Your only chance is your own local bank or credit union with one of your parents to co-sign.

Question: How to get a car loan if you have low credit score or no credit at all?
I want buy my own car but I don’t have cash.

Answer: Most people that have no or bad credit go to “Buy here, Pay here” car lots where they will do their own financing. You will have to have a down payment, and it’s usually the amount that the car is really worth. Then they will finance weekly payments for the rest of the over inflated price of the car.
If you have not so bad credit, but a low credit score, you may be able to get a car at a regular car lot with a co-signer who will be responsible for the loan if you default on it. You will pay higher than normal interest on that loan. You could get a family member or good friend to get the loan in their name if they have good credit and the payments will be lower, and let you make the payments, and when it’s paid off, have them sign it over to you.

Question: Does checking your credit score really lower your credit?
People keep saying this but it makes no sense, You obviously need to know what your credit score is. Like when they run your credit so you can buy a phone or a car, does this ruin it? I havent had my credit card for 6 months yet but when I do get a credit score can I check it?

Answer: Although it varies slightly depending on where you are (Country, province/state, etc), usually it does not directly affect your score, but your report does show how many times certain kinds of checks have been performed on your credit. (As I understand it, there are two basic kinds of checks – one where the company name is revealed on your report, and the other is a ‘soft check’ that is only indicated on your report by being included in the total number of soft checks requested.) As I mentioned, this doesn’t directly affect your score, but I’m sure how you can see that a company might be concerned if there are a high number of requests to view your credit – this could indicate that you have applied for a lot of credit lately, and that can make you a higher risk. You can, however, request to see your own credit, and this does not show up on your report.

Question: What is the best and/or faster way to build a credit score?
I am 18 years old. I have a no credit score. How would I go about starting and building my credit score? I’m the kind of guy that if its anything short of a car or house save up to buy it, but seeing as how my attempt to get said car failed miserably due to my parents not having a good credit score. I am lost in how I am supposed to start getting a good credit score if no one is willing to give me a chance due to my parents lack of discipline with their money.

Answer: The fastest way to build credit is to get a credit card, spend a little and always pay it on time.

Question: When paying off a car, what is the best way to improve my credit?
I don’t want to make payments on my car anymore, and pretty soon I will have saved enough to pay it off. The thing is, I want to do whatever will best reflect on my credit score. Is there a minimum amount of time you should make payments for? In March it will be 2 years since I bought it.

Answer: It really doesn’t matter. The account will show that it was paid as agreed on your credit report. There is no minimum amount of time you need to make payments for. Paying it off early may help your score by lowering your total debt, but it may not make a difference over paying it over the full term of the loan. It just depends on your situation. I’m sure it will feel good to have it paid off. Congrats!

Question: Buy a car outright or get a loan?
I can afford a new car and just pay for it myself. However, I have no credit and looking to buy a house as well. So to help me get some, I was gonna take out a loan for the car instead and pay the loan off. But again, with no credit, it was hard for me even to get approved for a loan. I applied for a vehicle loan for the price of the truck I was looking at and the maximum I was willing to spend on it, through a credit union finally and it looks like I got approved.

But I’m thinking I may be moving to fast… is this a good idea or should I just pay for the car myself? I need to build up credit cause I have absolutely zero but is this the best way? I’d like to have a decent credit score in 6 months so I can buy a house then.

Answer: Get the loan and in 24 months you can pay it off at that time if you wish. You should also be able to get a secured credit card from a bank. Just put up $500 Use it for gas and small items and always pay the balance the following month. Make sure they belong to the credit bureau.

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