AmeriCredit Auto Loans With a 520 Credit Score

by Steve
(Dana Point, CA)

Question: Do you have an opinion on AmeriCredit auto loans? They are the only lender through the dealer offering 12.9% loan for my new car. By the way, I have a 520 credit score.


Answer: Hi Steve. I work with AmeriCredit here at my dealership, but do not send them too much business, because the area I work in tends to have a lower average monthly income than what they require. However, I am still very familiar with their program.

Bad Credit? Low Credit Score? Need a Loan?
520 Credit Score Auto Loans

All in all, AmeriCredit auto loans are a great way to help rebuild your credit and I have never heard any bad things about them as a company.

Based on what you are being offered, 12.9% with a 520 credit score, I'd say that is definitely going to be your best bet. Maybe after you get 12-18 months or so under your belt with them you can look to refinance if your score is higher (like 640 or above) and any credit issues you may have now are resolved.

I know that AmeriCredit auto loans are available to customers buying GM products, that don't qualify for GMAC financing, at subvented rates (better than standard). This is a great way for customers with less than perfect credit to still get decent rates and affordable payments.

Those premium rates may also apply to other makes of vehicles, but I'm not sure.

In addition, they don't charge the dealer an outrageous fee to fund a loan and therefore you the consumer are still able to negotiate a good deal for yourself. That may not make sense, but trust me it is in your favor as a consumer (there's more wiggle room when negotiating).

As a consumer you can not apply direct to AmeriCredit for an auto loan and have to apply through a dealership. So in your case, the 12.9% is the best you are going to get and applying directly with them would do you no good.

To sum this up...With a 520 credit score in today's market if you can get a 12.9% bad credit car loan...I'd jump on it!

Hope this helps,

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