Auto loan credit scores are calculated by the major credit reporting agencies using a sophisticated "algorithim". This estimates, based on statistical probability, how likely you are to repay your loan and make timely payments.
Credit scores are broken down into a few categories...
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
These basic standards are used by most major lenders that car dealerships send applications to. You may have heard of a "prime lender". This would be a lender that only accepts applicants with credit scores of 720 and above.
Just as there are lenders that specialize in "prime credit applicants", there are lenders that specialize in giving auto loans to people that have Sub-Prime, Poor, Bad and Very Bad credit score ratings. If you fall within this category, then the following will assist you in obtaining an auto loan.
For people that have between "very bad credit" and "poor credit", there are loan companies that are tailored to fit your needs. They will take more into account than just your "credit score" and will take into consideration all of your accounts. Rental payment histories and other factors can be used to establish credit with these types of lenders.
To qualify, you must...
Have a credit score of 480 or higher
Be atleast 18 years of age
Have a regular income, such as a job, SSI or Disability income
Bankruptcy, whether chapter 7 or 13, must be discharged or dismissed
Have a valid Social Security Number/ Be a U.S. Citizen
Your income must exceed your monthly bills, including your car payment
Have an amount equalling your first payment as a down payment
