Why Bad Credit Isn’t the End to Your Car Loan Application

August 25th, 2017 by

If you have less than perfect credit, you probably already know it. And if you weren’t aware until you submitted your car loan application, you know now. But did you know that 78 percent of Americans have a credit rating below ‘excellent’? Having bad credit is common, but it doesn’t have to be the end for your credit application.

What Bad Credit Means for Your Car Loan

You might think that you’ll never get to buy your Toyota if you have bad credit but you’d be wrong. In fact, it’s just a small part of the credit application that matters. Other factors that are considered include:

  • Your income. You need to make enough money to support the car payments for your new Toyota.
  • Your down payment. If you have cash to put down on your car purchase, it reduces the risk for the bank and lowers your payments.
  • Your debt load. The amount of money you’ve already borrowed makes a difference in your current car loan application, bad credit or not.

As you can see, bad credit is just one part of a car loan application. If everything else looks good, there’s a great chance you can still buy your prized Toyota!

How Does Your Credit Affect Your Loan?

You can afford the payments, and you have a down payment? You’re almost there! Your credit rating still plays a factor but not as much as you’d think. In most cases, you’ll be able to complete the loan, but you may have to take a higher interest rate than you initially applied for.

New car rates are often subvented, lower than typical borrowing rates. If you have bad credit, financial institutions often offer non-subvented rates for your loan. It increases your payments slightly but it’s a fantastic option to still get into the driver’s seat of the car you want.


At Jay Wolfe Toyota of West County, we work with a host of lenders who understand your credit situation. They will do whatever it takes to secure the loan you need to buy your new Toyota. If you have excellent credit or less-than-perfect credit, you can count on Jay Wolfe Toyota of West County to get the job done for you.

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