The Time of SubPrime Auto Financing

Throughout last year the auto finance industry began to take more interest in financing for people with subprime credit scores, and it proved very profitable. Now we're in 2013 and the popularity of sub-prime car loans are in full swing for those who want to take advantage of this opportunity.

What is a Sub Prime Credit Score?

A credit score is offered to every consumer and is generally between 300 to 850, and a subprime credit score usually falls below 640. To some auto finance companies this may be considered to be a bad or below average credit rating, but it's still possible to qualify for a loan.

How to Get Sub-Prime Auto Financing

Many lenders have sub prime finance programs that are designed to help people get approved for a loan. These special financing opportunities usually implement more relaxed stipulations that don't allow for a poor credit score to ruin the buying process.

For example, a number of dealers ask that buyers at least provide a minimum monthly income of $1500 a month. This proves that a person is able to meet the monthly payment and interest rates associated with their loan. There also are plenty of loan companies like AutoNet Financial that offer bad credit auto financing to people who have a consistent residency history, as multiple change of address can become a red flag. 

It's also a good idea to consider things such as using a cosigner, making a down payment, or even using a trade-in vehicle to simplify the loan process with sub-prime credit. These things can equally make your poor credit score less of a factor, and place in the perfect position to get a loan.