Minimum Credit Score For Auto Loan

If you don't know what the minimum credit score for an auto loan is then you are setting yourself up for rejection after rejection. I don't want you to get rejected so I've put together this short article to give you some inside information on credit scoring and tips to follow to improve your approval rate with lenders.

What's with credit scoring anyway?
The 'credit score' was created as a standard for assessing the ability of a borrower to repay the amount borrowed in the form of a loan. It's a standardized system of rating and is calculated using several variables. It it's simplest for your credit score will always be assessed based on the following guidelines:

* 720 and above is Prime Credit
* 680 to 719 is Good Credit
* 640 to 679 is Marginal Credit
* 600 to 639 is Sub-Prime Credit
* 580 to 599 is Poor Credit
* 525 to 579 is Bad Credit
* 480 to 524 is Very Bad Credit

If you find yourself in any category below marginal credit then it's not the end of the world. The finance industry has recognized that in these tough economic times there are a lot of people who can't boast a good or above credit rating. As a result of this there a lots of companies that will lend money to people who for whatever reason have a poor credit standing.

What's really good about auto loans is that qualifying is not as tough as say qualifying for a mortgage. The sum of money involved is usually smaller in comparison and so all one has to do is meet the minimum credit score for an auto loan.