Having a credit score of 625-630 is a problem if you try to get financing through a typical prime lender that normally only deals with people that have good credit. There are however, a couple good places that can help you to get a car loan, even with a score as low as 650 and below.
What does it take to get approved with a score this low?
If you have a job earning more than $1500.00 per month, are not currently in a bankruptcy and don't have a recent repossession, it's not that difficult. The trick to getting approved and getting reasonable payments and terms is simply a matter of knowing where to apply.
Sub-prime or secondary lenders are the way to go, but not all are created equal. For example, you can easily get approved with a buy here, pay here dealer, but that's not in your best interests. Sure, you can get financing, but it won't be with terms that are favorable and certainly won't help your credit score. Those types of places do not report to Equifax or any of the major credit bureaus, so there is no long term benefit for you. On top of that, the finance charges that those places charge along with inflated price tags on vehicles, gives you plenty of reason not to go that route.
One possibility that you may wish to explore is online auto financing with a good sub-prime lender. The better places to apply will help you to get approved with affordable interest rates and payments, and will also help you to rebuild your credit history so that next time, you won't have to have this concern.
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