No Credit vs. Bad Credit – How to Find a Loan that Best Fits Your Needs

When you need an auto loan, any lender will want to take a look at your credit score. Having good credit can make financing easy, but what if your credit is low or unestablished? Let’s take a look at the different kinds of credit scores you might have, and how they impact the kinds of loans you can get.

What Does It Mean to Have No Credit?

If you’re a first time car buyer, there’s a chance that you’ll be looking for a loan with no credit. This means that your credit score is unestablished, typically due to a lack of history borrowing and using credit cards. Without a credit score, it’s hard for banks to know if you’re a trustworthy borrower and if they can expect to be paid back on time, making it less likely that they’ll lend to you. If this is the case, you might have better luck working with a bank that you already have an account and financial history with, or by shopping at PA Credit King, where we can try to find you a loan from many banks at once.

How Does Bad Credit Affect My Loan?

A credit score under 630 is typically considered bad. This is usually the result of missed payments on loans, using more than 30% of your credit limit, or having been taken to collections. If your credit is bad, that means that lenders won’t want to give you a loan because they are worried you won’t pay it back. This is the hardest time to get an auto loan, as many banks will not want to work with you at all. You can try applying for a loan at multiple banks, but your best bet might be to finance with us a PA Credit King. We have a working relationship with tons of banks in the area, and can use those connections to find you the loan you need to get behind the wheel today.

Can I Get an Auto Loan With Fair Credit?

If your credit score is between 630 and 690, that typically receives a rating of fair. You might have missed a payment here or there, but with a fair rating, you’re likely showing progress while rebuilding your credit. It’s easier to find an auto loan with a fair credit rating than with a bad credit rating, but you might still find that some lenders don’t want to work with you, or that your rates will be higher than they would be if your credit was better. If that’s the case, don’t hesitate to apply for financing with PA Credit King. We’ll find you loan offers from multiple banks in the area, so that you can pick the one with the best rates to make buying more affordable.

Getting an Auto Loan With a Good or Excellent Credit Rating

If your credit score is above 690, there’s a good chance that you’ll be able to find an auto loan from a bank or other traditional lender. But are you confident that you’re getting the best loan available to you? If you apply for financing with PA Credit King today, we can do the shopping for you, collecting offers from various local banks and then helping you pick the one with the rate and terms that best fit your life.

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