Have a low score and want to finance a car? How and what your chances are?

It is no longer news that most people dream of having their own car, both to ensure greater independence of locomotion and for the safety that is often guaranteed by owning the car. However, what many people do not know is that having a car can bring a lot of red tape. And that includes the choice of good financing to purchase the car you dreamed of. However, one of the main things that is taken into account is the credit score of the buyer.

Does the credit score influence when applying for a car loan?

Considering the large number of bad debtors, financial institutions need some guarantee that the client to whom they will provide the financing will comply with the agreed payment. Therefore, if your score is too low, financial institutions generally prefer to deny credit than to run the risk of being a bad payer.

In theory, there is an ideal consumer profile to pass vehicle finance. Generally, it is a person with a fixed monthly income, with a credit score greater than 700, depending on how much the person wants to finance, 100% or less. It is worth mentioning that financing a car depends on each situation, person and financial institution. Vehicle financing is one of the most common ways to get money to buy a car. Thus, you pay in installments the amount financed. The negotiation is done directly with the financial institution, without interference from the dealership.

But what is a Credit Score?

It is a score that is assigned to you every time you make a payment on time. The Score or score of the CPF ranges from 0 to 1000, being considered a low score when it is below 500. If you always keep track of your payments and make all of them up to date, you probably have a good and sufficient score for financing.

If you forget to pay your bills, EMI, taxes on time, your score will drop whenever it happens. It is through this score that banks and financial institutions decide whether or not to approve consumer finance. However, there are financial institutions that offer guaranteed car loans with bad credit. To request a car loan, simply contact the financial institution directly.