When you have bad credit, lenders will need to look at factors other than your credit score to determine if you meet the eligibility requirements for a loan. For example, lenders want to know that you can afford the car you want to buy (read our blog to find out some Tips & Tricks To Build A Better Credit History). At CreditYES®, we look at your monthly income to help determine your eligibility. You’ll need to earn at least $1,500 per month before taxes to qualify. But there’s a little more to it than that.
Your lender will also want to know how much of your income is already being used for debts. This is known as your debt-to-income (DTI) ratio. This would include such items as housing payments, student loans, credit card payments, and other loans. Your debt should ideally not use up more than 35% of your income each month. You can learn [...]
If your credit score isn’t where you’d like it to be and you’re planning to make a big purchase soon, you’re going to want to improve your credit before you begin shopping for a loan. Understanding your credit score and the factors that make it up is one of the first steps to improving it. Below we touch on some of the basic principles for credit scores.
What Is a Credit Score?
Your credit score is a number somewhere between 300 and 850 that tells lenders about your borrowing and repayment history. There are many companies that calculate scores, but one of the most well-known is Fair Isaac Corporation. This is how we get the term “FICO.” Regardless of which company created the score, most use a fairly similar collection of information about you to determine yours.
How well you paid your bills is a major consideration. If you were late, have [...]
Disclaimer: We are not a lender and do not offer loans or make determinations of eligibility based upon creditworthiness. We connect you with reputable dealerships near you. All lending decisions are made by the lender and we do not guarantee approval or that any loan terms or rates provided or offered to you will be the best terms or the lowest rates available in the market.