If you are considering buying a Ford vehicle and have doubts about how to finance it, one of the most commonly asked questions is what credit score you need.
We review some key points you should take into account, not only the credit you need but also the financing options.
Is there a single best credit score for financing a Ford?
Not really. You have to take into account the type of financing you choose. If you select a loan from a private lender, the score will depend on their scale. On the other hand, it will also depend on your income and expenses. And beyond that, it will also depend on your credit history.
For example, you will have a hard time if you have a good credit history, but your income is low. Your required score is likely to be above average.
Another example is that if you have a good income but a high level of credit debt, your credit score is also likely to be damaged. That is also true in the case of a bad credit history due to delinquencies and unaccomplished obligations.
The good news, however, is that there is a wide range of lenders. That means that even with a low income and an average credit score, you may be able to finance a Ford.
What type of financing to choose to buy a Ford?
The credit score will depend, therefore, on the type of financing you choose and on your conditions and economic situation.
Therefore, you should first consider the type of financing you will choose and how this decision will affect your credit. Also, it is important to know that the best proposals usually carry a higher demand.
For example, you can get an average loan with scores of around 620 points. However, if you want a low-interest or even zero-interest loan, the score should be 700.
If we had to choose three common models for vehicle financing, they would be the following:
- Applying for a personal or consumer loan is one of the most common. It can be requested from most banks and lenders. It usually has an average credit score requirement. However, your income and the credit debt you maintain will play an important role.
- Finance with the company itself: most car companies have their lenders. They offer financing, sometimes in collaboration with other financial institutions. The great advantage is the reduced paperwork and, in many cases, low-interest rates. The difficulty is that they require a higher level of credit score.
- Alternative methods: in this case, different alternative methods are involved. It can range from including the money for the vehicle payment in a mortgage debt refinancing to another type of loan, such as quick loans. It is usually the most expensive model to finance. It is also, at the same time, a model that hurts credit scores more than others.
What would be the average credit score for financing a Ford?
There is no average score that we can adequately determine. This is because, as we have seen before, it depends on many different factors.
In general, we could say that if you’re below 620 points, it will be very difficult to get financing. For simple low-interest financing, the score can be around 700 points. For obtaining funding without any problems, even with very low-interest rates and high amounts, you will need 750 points or more.
Lenders, including the car companies’ own finance companies, look for well-qualified buyers. A well-qualified buyer is someone with a top-tier or tier-one credit score. That implies that credit history points should always be at most 720.
On the other hand, it is important to remember that other factors are always involved. When the financial services company studies your loan application, it will evaluate your credit score, income, economic stability, and the amount you request.
Logically, it will be better to provide an amount of money as a down payment. Reducing the amount to be financed offers more confidence to the lender.
How long does it take to respond to a loan application at Ford?
If you are applying for a loan from FORD’s financial services subsidiary (Ford Motor Credit Company), the response can be almost immediate; in fact, you will have a reaction in just a few minutes.
The process is usually quick if the application is processed through an online lender. In the case of conventional loans through bank branches, these applications may take a little longer.
The recommendation is to make a good comparison between all the offers. The more offers there are, the better we can choose.
At the time of the comparison, you must value both the interests and the amortization term, the conditions of guarantees, and the required credit score. All these factors will influence the type of loan and how it works out for your interests.