Although many lenders work with bad credit, you may not be able to get a car loan with a 400 credit score. This credit score puts you in the deep subprime range ...
How bad is a 400 credit score?
Your score falls within the range of scores, from 300 to 579, considered Very Poor. A 400 FICO® Score is significantly below the average credit score. Many lenders choose not to do business with borrowers whose scores fall in the Very Poor range, on grounds they have unfavorable credit.
What is the lowest credit score to buy a car?
In general, you'll need a credit score of at least 600 to qualify for a traditional auto loan, but the minimum credit score required to finance a car loan varies by lender. If your credit score falls into the subprime category, you may need to look for a bad credit car loan.
Can you get a loan with a credit score of 500?
You may qualify with a poor credit score as low as 500, but you must also satisfy several other requirements to get an FHA loan guarantee. These loans require a 10% down payment (or 3.5% if your credit score is above 580), mortgage insurance, and a monthly payment for the life of the loan.
Can I get a car loan with a credit score of 500 in South Africa?
300 and 579, your rating is very poor, and you will most likely not be approved for car finance. 580 and 669, your rating is fair, and you are considered to be a subprime borrower and the dealership will consider your application.