Kia is a great car company, and you can find local dealerships all over the US. They have a wide variety of cars with prices to match any budget, and they are known for being reliable.
But what if you don’t have good credit? Can you still get approved for a Kia finance loan? The answer is yes!
Most people think that getting approved for a loan with low credit scores is impossible, but it’s not.
This blog post will discuss the steps required to get approved for a Kia finance loan with low credit scores- so keep reading!
Is it easy to get approved for a Kia?
It’s not easy to get approved for an auto loan in general. However, getting approved for a Kia finance loan is easier than most other car brands, like getting approved for a Mercedes.
If you have a moderately good credit score, getting approved for financing shouldn’t be too hard. Just keep in mind that there are several steps involved with buying a new car, so don’t give up if your application isn’t approved right away.
Kia finance credit score requirements (650)
To get approved for a Kia finance loan, you need a decent credit score. The minimum required is 650, and anything below that will make it very difficult, if not impossible, to get qualified.
If your credit scores are less than 650, other options may be available, such as getting a co-signer with a better credit score or putting a larger down payment. I’ll go over some more tips later in this article.
Can you get a Kia with bad credit?
It’s definitely possible to get approved for a loan when leasing or purchasing a new Kia, even with Bad Credit!
Of course, having a credit score of 650 or higher will help you get a better interest rate and lower down payment. But, even if you don’t have good credit, it’s still possible to finance a Kia.
Tips to get approved for a new Kia
Kias are known as affordable and very reliable cars. Many people choose them over their competitors because of how easy it is to get approved, even with a low credit score.
The following are some tips on how to get approved for an auto loan with bad credit history:
Increase your down payment- With a larger down payment, you will be essentially borrowing less and increasing your chances of getting approved. Many Kia dealerships advertise “No Money Down” sales events, but expect your down payment to be at least 20% of the purchase price if you have bad credit.
Negotiate the price before applying for financing- I’ve worked at a couple of car dealerships while away at college and during summer breaks. Not many people know that if you negotiate the price first before applying for financing, you’re essentially asking to borrow less and will increase your chance of getting approved.
Finance through a local bank or Credit Union- Once you know the price of the car, call your local bank or credit union to see if they will finance that amount for you before applying with the dealership. You can use their rates to negotiate with the dealership and get a better deal.
Keep in mind that some Kia dealerships have their own finance companies to approve customers, so don’t be surprised if your local bank or credit union declines you. I recommend calling them first to see what rates they offer you before applying for financing through Kia directly.
Get someone to co-sign for you- If you have a family member or friend with excellent credit, ask them to co-sign for you. Having a co-signer will increase your chances of getting approved because they take on the responsibility of repaying any money owed if you don’t make payments.
Negotiate your interest rate- You may be wondering how this can help if your credit score isn’t good enough yet? Well, after putting down a decent amount of money (20%) and negotiating the purchase price with the dealership, you can then negotiate a better interest rate with the finance department.
The dealership may not be willing to give you a low-interest rate since they’re already giving you such a good deal on your purchase price, but it doesn’t hurt to ask for one!
Alternative financing- There are also several online companies that specialize in financing customers even if their scores are low. This may be an excellent alternative to get approved for financing if you still want to buy the car and don’t have time to wait on your credit score to increase through other means.
Final Thoughts
So, can you get a Kia with bad credit? The answer is yes! With the right action plan and tips on getting approved for an auto loan, it’s easy to finance a Kia even with low scores. Just keep in mind that there are several steps involved, so don’t give up!
