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Credit 101: What Credit Score Do I Need to Buy a Car?

In 2017, there were more than 12,027,860 cars registered in South Africa and that number continues to climb.

One of the most common questions we get asked is, “What credit score do I need to buy a car?”

In this article, we will explore the ideal credit score needed to buy a car, how a short-term loan may help, and how to easily apply.

What Credit Score Do I Need to Buy a Car?

Finding out what is a good credit score to buy a car varies from website to website, making it difficult to make a decision. Instead of providing a wishy-washy answer we’re going to give it to you as straight as possible.

It all varies but as long as your credit score is above 680, you should have a decent time buying a car. If your credit score is below 680, you may still get a car but you may have to hop a few hurdles before you do.

Another factor in purchasing a car is finding the best credit score to get a car loan. Borrowers’ credit score varies but the average credit score for car loans hovered around 714.

If you’re worried that your credit score isn’t high enough to be eligible for a loan, much less a car, don’t be. There are many people who have a lower score for one reason or another that still manage the new car they so desperately need.

What You Need to Know About Short-Term Loans

Life happens at the most inopportune moments and may hinder your ability to purchase a car. Don’t worry, that’s where short-term loans come in handy.

A short-term loan does just what its name suggests; it’s a loan that’s designed to be paid back quickly. The timetable is perfect for couples or families that just need a little boost to make ends meet. Short-term loans are usually paid back within one to three months.

Due to that quick turnaround, short-term loans are usually very small, available anywhere from R500 to R8,000. Be wary of lending companies that offer even more, as it may be a sign that they’re not a very reputable company.

Short-term loans are usually available quickly, possibly even the same day requested. Short-term loans are also extremely accessible in South Africa.

The basic requirements to be eligible for a short-term loan are as follows:

  • You must be a legal South African citizen
  • You must have a regular, provable income
  • You must have a valid bank account and cell phone number
  • You must be over 18 years old

Once that criteria is met, applications are easy with LittleLoans!

Apply for a Quick Loan Today

Don’t let a lack of funds prevent you from purchasing a much-needed car. After answering, “What credit score do I need to buy a car?” The next question is, “How do I apply for a quick loan?”

LittleLoans is making it easy for South Africans to apply for quick, affordable loans for life’s most important investments.

Apply for a loan easily with our convenient online form and take the next steps towards your future!