Owning a car was once a luxury, but for most of us, it is a necessity of daily life. Most of us do not live in towns or cities where public transportation is available, and even if it is, it is generally not very easy to get around using it. Buying a car is also an expensive thing to do.
Most of us do not have the money to plunk down to buy a car outright, which is why many of us purchase our cars through lines of credit called car loans. Over the past few years, some innovative car companies have come along, that offer those with less than perfect credit the ability to get the transportation they need.
CarMax is a popular car dealership that works mainly in quality used cars, but does also have newer models for sale. Like many dealerships, you do not obtain financing from CarMax directly, but rather, through one of their approved lenders. There are different requirements for each lender, but there are some general things that they all have in common.
Most of those approved for a vehicle through CarMax have credit scores of at least 650 or higher. It is recommended though, that your credit score be 700 or higher for better chances of approval. In addition to your credit score, they also take a look at your credit history. Having negative judgments, charge offs, other lines of credit that are in bad standing, or have recently filed for bankruptcy, your chances for approval are incredibly slim. However, if you credit history is in good standing, with none of the negative marks mentioned, you are more likely to be approved. Also, one’s income is looked into when considering them for a line of credit to ensure that they have the earning power to actually make good on their loan.
Cars in a variety of price ranges are available through CarMax. This is a great place to get an affodable used car, at favorable terms, even if you do not have great credit. However, their guidelines for financing are more strict than what one might find via a private loan through one’s own bank or another lender. It is advised, if you have a credit score on the lower end of the recommended spectrum, that you consider alternative forms of financing, as you may find better terms for your loan that way.