Bad Credit Auto Loans in Troy (MI)

At Wolverine Auto Finance, we’ve streamlined the approval process. We’ve been in the automotive business for years, developing a vast network of dealers and lenders, many of whom can approve you for a car loan in Troy – online! When you submit your application, the dealers and lenders in our network compete against each other to fund your loan, then guide you through the process until you’re driving home in a new (or used) vehicle.

Troy is a relatively affluent area, ranked as one of the safest and best places to live (CNN Money) in not just Michigan, but the entire nation. However, that doesn’t mean many of its residents aren’t struggling with credit problems related to everything from home foreclosure to bankruptcy to divorce and medical bills. Obviously, this can cause problems when it comes time to finance a car, especially if you don’t utilize a service like ours. Do you have a FICO score of 620 or lower? Don’t worry. Bad credit is not a deal-breaker, not if you apply through us. Each lender has their own approval criteria, but there are three “bad credit” credit tiers:

  • Tier 3/C: 580-660
  • Tier 4/D: 520-580
  • Tier 5/F: 250-520

Troy-MINo matter which tier you are in, we have lenders that want to give you a second chance at financing. As you know, bad credit scores result in increased interest rates, so it’s vital that you purchase a budget friendly vehicle with low monthly payments. We recommend that your car payment represent no more than 1/10th of your regular monthly income. When you apply, you’ll typically be matched with a dealer or lender in Troy that specializes in special financing scenarios. After that a finance specialist will contact you to help guide you through the rest of the process, culminating in a visit to the dealer to select your vehicle. The bad credit car dealerships we work with do report your payments to the credit reporting agencies, which is imperative if you want to restore your credit.

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How Much Do I Qualify to Finance?

The table that follows shows how much you can borrow, derived from a monthly income of $3,153, the average in Troy. These sums are only estimates. You may be entitled to a different amount. Speak with your vehicle finance specialist for more information.

Credit History Income Factor Loan Amount
Good Credit 10 $31,530
Average Credit 9 $28,377
Slow Credit 8 $25,224
Bad Credit 7 $22,071
Terrible Credit 6 $22,071

To find out how much you can borrow, multiply your monthly income by the appropriate income factor.

Down payments refer to payments made the day you buy your new car or truck. They are frequently required of consumers who have a poor history of debt repayment. After all, lending to customers with poor credit is a much riskier proposition, and a down payment helps to ensure that at least a percentage of the vehicle has already been paid off. The good news is that, as the automotive industry rebounds, more lenders and dealers should be able to approve car loans in Troy with no money down.

Submit your application. We’ll connect you with a lender or dealer who can provide you with a loan, zero down payment necessary.

Buy Here Pay Here Dealers in Troy

Ever wondered about car lots in Troy promoting buy here pay here financing? Shoppers who cannot secure financing because of seriously bad credit often find themselves at dealers like these. Everything is paid to the dealer directly, and the cars and trucks for sale are normally less than $10,000.

Credit and Income: Troy

Dealers and lending companies are interested in much more than just your FICO score. Lenders check your ability to pay (income), history of employment and residence, and credit profile.

Below are some average statistics for residents of Troy.  To learn more about the city, visit the official site:  http://troymi.gov/.

  • Gross Earnings: $37,840 Per Year
  • Average Car Payment: $347 (11% of Income)
  • Recommended Monthly Payment: $252 to $315 (8%-10% of Income)

Less-than-perfect credit is fairly pervasive in Troy and across Michigan. The chart below shows the estimated number of Troy residents at each credit tier.

FICO Score % of Population Residents
300-499 2% 1,619
500-549 5% 4,048
550-599 8% 6,477
600-649 12% 9,716
650-699 15% 12,145
700-749 18% 14,574
750-799 27% 21,861
800-850 13% 10,526