Other parameters considered will be the number of “trade lines” on yourbureau score; each reflects a loan you had in the past or currently have. (^)
Seven is usually the minimum, including one for a car loan or lease of over$10,000-$12,000. They’ll want you to have made payments on such a loan (^)
for two years or more, too. They’ll also typically want you to have had acredit history going back five years or more. These factors can rule out
prime credit for first-time buyers, even though their scores are over 700.
lenders to you if you’re a prime shopper should be in the 2-5 percentTIP: As of the time this was written, the rates offered by^
range on a new car, and 3-6 percent on a late-model used car.
NON- AND SUBPRIME LENDING
If your credit scores range between 620 and 679, you are considered a“nonprime” or “near prime” borrowing risk and may end up having to use a (^)
specialty lender. Below 620, you are subprime. This type of loan is alsocalled special finance (or “spi-fi” for short). All the basics of a prime loan still (^)
apply, such as a good DTI and having job history. There will be other hoopsto jump through, such as showing proof of income, needing to provide from
three to 10 references and making sure all your loans are current.
barry
(Barry)
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