Great Credit Scores Still Net Good Auto Loans

February 3, 2009

The economy took a serious blow when the mortgage industry faced what can be considered its greatest crisis in history.

Now that the dust is clearing from the sub-prime lending fiasco, banks are reeling in their once-generous nature and are imposing strict standards for borrowers to follow in order to qualify for loans. Even though home mortgages are a tough act to follow these days, auto financing is not that far behind in terms of challenge. Fortunately, for those who have great credit, they can still qualify for good auto loan opportunities.

The credit crisis has affected everybody, both consumers and businesses alike. It’s very tough to get loans these days, and lines of credit have been choking. However, it’s not universal for every individual. The extent to which a person feels the effects of these tightened standards depends greatly on his or her credit score.

A superior credit score will allow anyone to access credit options easily. The bar has been raised for qualifying, though. Last year, a consumer needed a FICO score of around 700 in order to qualify for the best credit offers. Nowadays, that figure is higher. If somebody wants to get a good loan, they’re going to need around 730 to 740 in terms of credit. With a max of 850, that’s a very high figure to aim for, which pushes many people out of range for getting the best automotive financing deals.

Fortunately, raising credit is always possible. As long as consumers work towards improving their credit scores, they can eventually qualify for good loans. Having a good credit score also opens up a whole lot of opportunities in other areas of life, so it’s something that should be aimed for regardless of whether a person wants a new vehicle or not. It can help a person acquire better home loans and credit cards with lower interest rates.