Having a credit score that is only 480-550 can create serious obstacles when it comes to getting a car. To get a car with a score as low as 500, you will have to most likely think outside of the box and explore resources to get approved that you may have previously not been aware of. You can easily get approved, however you will not get approved for $40,000 vehicle.
You’ll have to set your sights to something reasonable and work on rebuilding your credit.
One big mistake…
Many people that have low credit scores around 500 frequently make the big mistake of using a dealership that has in-house financing. While this is okay as a final and last resort, it should not be the first option that pops into mind.
The main reason that this can be a mistake is because a buy here pay here car lot is not going to help you to rebuild your credit. They simply do not report to any credit bureau and if you make your payments on time, you will not be reflected on your credit report whatsoever.
Yes, you can use a buy here pay here dealer as a reference locally, if you’ve made your payments on time. They will not however, benefit you when it comes to your overall credit history when you are applying for a credit card or home loan.
You are much better off if you use a website that has a database of lenders that you can be matched with.
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