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They say the car makes the (wo)man, but does the credit score make the car?
RateGenius compiled a list of borrowers’ ten lowest credit scores by vehicle model in its State of Auto Refinance 2021 report.
But before we dig into the list, let’s run through the basics of auto loan refinancing, because the process is different from obtaining an auto loan.
Auto loan refinancing is like trading in your car for a better model — except with your loan. As the name implies, refinancing your auto loan replaces your current car loan, usually at a lower rate and/or with better terms.
Subprime borrowers are common auto loan refinance applicants, especially those who’ve improved their financial profiles. For instance, let’s assume you had a bad credit score and had to take out a subprime loan. If you’ve improved your credit score since then, you could be a prime candidate for refinancing, which could help you save a significant amount of money if you’re approved.
How much money? Last year, borrowers who refinanced their car loans averaged $989.72 of annual savings.
Lenders consider a variety of criteria when they review auto loan refinance applications. People tend to immediately think of credit scores as the biggest factor. While your credit score is a factor, it’s not the only factor.
Here are the areas of your financial profile that lenders assess when evaluating auto loan refinance applications:
Together, these factors tell a lender how creditworthy you are as a borrower. So, if you don’t have the best credit score or your current car loan is upside-down, fear not — the other areas of your financial profile can compensate for weaker ones.
For context, it’s helpful to know the average credit score of an approved applicant, regardless of vehicle model. In 2020, the average credit score of an approved refinance loan application was 720. Keep in mind, this is an average. Some applicants had higher scores, some had lower scores.
Your location makes a difference too — some cities and states experienced greater savings despite having lower average credit scores. For instance, the average approved applicant in Oklahoma had a credit score of 694 and saved $1,005 annually.
Now that we’re on the same page, here are the ten lowest credit scores by vehicle model.
Even though we just ranked these vehicle models by credit score, we can’t overstate this fact: Your credit score is only one piece of the puzzle. A low debt-to-income ratio or loan-to-value ratio can help offset a low credit score. Even applicants with subprime credit scores can still be approved to refinance their auto loan, which helps keep their wheels on the road and more money in their bank accounts.
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