Home > Uncategorized > The Most Popular Cars for People With Bad Credit

Comments 1 Comment

Most people put together a wish list of sorts before they head to a car dealership to buy a new set of wheels. It depends on your priorities, but you’re probably searching for a car that meets a few requirements, including cost, vehicle type and fuel economy.

Here’s another thing to research: Does your desired car match up with your credit score? Assuming you’re planning to take out an auto loan to finance your new car, you’ll need to know your credit standing, because you’re more likely to get approved for a larger loan amount and lower interest rates if you have good credit.

If you’re planning to buy an expensive car with little money down, you’ll want to go into the dealership with an impressive credit standing in order to improve your chances of getting approved at an affordable rate. Conversely, if you don’t have great credit, you may need to look at less expensive vehicles.

For example: The suggested retail price for a 2013 Dodge Avenger is just under $20,000, according to Kelley Blue Book. The average credit score of someone who finances a new Avenger is 619, according to data from Experian Automotive. That’s considered “poor credit” on the VantageScore 3.0 scale, which ranges from 301 to 850. People who financed new Avengers had the lowest average credit score of any other make and model in 2013.

Low credit scores aren’t necessarily tied to low-cost cars. A 2013 Nissan Versa is the lowest-priced new car out there, according to Kelley Blue Book, starting at just under $12,000, and its drivers have only the fifth-lowest average credit score of new-car buyers. The credit score-car model relationship could also be a result of different financing standards set by various automakers. The reason behind the correlation isn’t clear, but the information could be helpful for people with poor credit looking to finance new vehicles.

5 Cars Popular Among People With Poor Credit

This data comes from Experian Automotive and covers new car sales from 2013. The credit scores are on the VantageScore 3.0 scale.

  • Nissan Versa — 657
  • Kia Rio — 656
  • Chrysler 200 — 651
  • Kia Forte — 650
  • Dodge Avenger — 619

Scores between 600 and 649 are considered “poor,” and those between 650 and 699 constitute “fair credit.” You should have an idea of your credit standing before applying for a loan, and you can check two of your credit scores for free every month on Credit.com. If you’re concerned your credit isn’t good enough, you can make a plan to improve it, but you’ll never know what needs work if you don’t check.

More on Auto Loans:

Image: Digital Vision

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

  • http://blog.driveitme.com DriveTime Car Sales

    We can also agree that low credit scores aren’t necessarily tied to low-cost cars. Some of our most popular cars every year are BMW 3-Series, Impalas, Malibus and 200 or 300’s. Even in the used car market, people with bad credit want the vehicle that suits their needs and preferences.

Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them.

Hello, Reader!

Thanks for checking out Credit.com. We hope you find the site and the journalism we produce useful. We wanted to take some time to tell you a bit about ourselves.

Our People

The Credit.com editorial team is staffed by a team of editors and reporters, each with many years of financial reporting experience. We’ve worked for places like the New York Times, American Banker, Frontline, TheStreet.com, Business Insider, ABC News, NBC News, CNBC and many others. We also employ a few freelancers and more than 50 contributors (these are typically subject matter experts from the worlds of finance, academia, politics, business and elsewhere).

Our Reporting

We take great pains to ensure that the articles, video and graphics you see on Credit.com are thoroughly reported and fact-checked. Each story is read by two separate editors, and we adhere to the highest editorial standards. We’re not perfect, however, and if you see something that you think is wrong, please email us at editorial team [at] credit [dot] com,

The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.

In addition to appearing on Credit.com, our articles are syndicated to dozens of other news sites. We have more than 100 partners, including MSN, ABC News, CBS News, Yahoo, Marketwatch, Scripps, Money Magazine and many others. This network operates similarly to the Associated Press or Reuters, except we focus almost exclusively on issues relating to personal finance. These are not advertorial or paid placements, rather we provide these articles to our partners in most cases for free. These relationships create more awareness of Credit.com in general and they result in more traffic to us as well.

Our Business Model

Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Visitors to Credit.com are also able to register for a free Credit.com account, which gives them access to a tool called The Credit Report Card. This tool provides users with two free credit scores and a breakdown of the information in their Experian credit report, updated twice monthly. Again, this tool is entirely free, and we mention that frequently in our articles, because we think that it’s a good thing for users to have access to data like this. Separate from its educational value, there is also a business angle to the Credit Report Card. Registered users can be matched with products and services for which they are most likely to qualify. In other words, if you register and you find that your credit is less than stellar, Credit.com won’t recommend a high-end platinum credit card that requires an excellent credit score You’d likely get rejected, and that’s no good for you or Credit.com. You’d be no closer to getting a product you need, there’d be a wasted inquiry on your credit report, and Credit.com wouldn’t get paid. These are essentially what are commonly referred to as "targeted ads" in the world of the Internet. Despite all of this, however, even if you never apply for any product, the Credit Report Card will remain free, and none of this will impact how the editorial team reports on credit and credit scores.

Your Stories

Lastly, much of what we do is informed by our own experiences as well as the experiences of our readers. We want to tell your stories if you’re interested in sharing them. Please email us at story ideas [at] credit [dot] com with ideas or visit us on Facebook or Twitter.

Thanks for stopping by.

- The Credit.com Editorial Team