A lot of people have been turned down for an auto loan due to bad credit…but what does that mean exactly? At what point does your credit qualify as “bad”? And is this line between “bad” and “fair” credit a black-and-white one?
These are all good questions. Basically, the line below which credit is classified as “bad” or “subprime” is not a line so much as a range. That said, most experts will tell you that lenders define bad credit as a credit score of below 640, 620, or 600 – depending on whom you speak with, the current state of the economy, and the particular situation. For instance, it seems as if this score has been dropping gradually ever since the economic downturn, as credit scores across the board have decreased.
For anyone with a credit score in the low 600’s, a second chance auto loan may be necessary.