Auto Loans - CarsDirect (2024)

FAQs

Does Cars Direct really work? ›

If you've had a hard time getting auto financing elsewhere, CarsDirect might be worth a look. It does seem open to borrowers who have few options. However, if you don't need that additional lender flexibility, you're probably better off with a different provider.

The credit score required and other eligibility factors for buying a car vary by lender and loan terms. Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.

Your credit score is crucial to determine your eligibility for a no down payment car loan. Most lenders require a FICO credit score of at least 680 before you can qualify. If your credit score falls below 680, improve your credit score before you apply to help you qualify in the future.

A credit score of 500 is considered poor credit, and lenders will likely see you as a higher risk borrower. You might also have a higher interest rate and may need to provide a larger down payment to finance a car.

Credit score: You might need a credit score of at least 740 to be considered for a 0% APR loan. The minimum credit score depends on the dealership and the car you're interested in purchasing.

A score of 700-850 is what most lenders consider ideal. Borrowers in this range can expect to get offered lower interest rates and more flexible loan terms. A higher credit score can also potentially reduce the required down payment and make the upfront cost of purchasing a car more manageable.

In general, you'll need a FICO credit score of at least 600 to qualify for a traditional auto loan.

You can raise your credit score 100 points in 30 days by disputing errors on your credit report, paying off past-due accounts, and lowering your credit card utilization. Creditors typically report updated information monthly, so it is possible to improve your score by 100 points in 30 days.

Consider putting at least $6,000 down on a $30,000 car if you're buying it new or at least $3,000 if you're buying it used. This follows the guidelines of a 20% down payment for a new car or a 10% down payment for a used car.

CarsDirect is not a lender — it's a search hub that helps you find loans from lenders it partners with. The site's tools let you compare multiple auto loan options. CarsDirect says its customers usually are able to purchase their vehicles within 24 to 48 hours after completing the application process with a lender.

Which FICO score do auto lenders use? ›

What credit score do auto lenders look at? The three major credit bureaus are Experian, TransUnion and Equifax. The two big credit scoring models used by auto lenders are FICO® Auto Score and Vantage.

Car owners can indeed get paid to put ads on their cars—a procedure known as “wrapping”—but some solicitations to join such advertising companies are scams. Unfortunately, this is a field where fraudsters abound. The sums that legitimate advertisers amount to a little extra income per month.

How do I know if a car shipping company is legit? You can determine the legitimacy of a car shipping company by checking if it has a valid motor carrier (MC) number and USDOT number. A large volume of positive reviews through reputable websites like the BBB and Trustpilot can also point to a company being legitimate.

myAutoloan is a legit company to do business with online and has a great reputation matching lenders with great rates to borrowers. The BBB itself gives myAutoloan an A+ rating and accreditation which means they respond to customer complaints fast and have transparent business practices.

Should I Sign Up for Free Car Media or ReferralCars? While some websites claim they are legit, we do not feel comfortable recommending either company due to user complaints and basic security issues with both websites.