Does Ford Finance Bad Credit?

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Even with poor credit.

By

Automotive Content Editor

Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


, Automotive Content Editor - August 25, 2022

Typically, the better your credit score is the better your chance of finding financing. However, some automakers, like Ford, recognize that consumers with bad credit still need cars. Ford is one of a handful of manufacturers that finances a wide variety of consumers, including those with bad credit, who are looking for a new car, truck, or SUV.

What Does Ford Consider Bad Credit?

Ford Credit, the captive finance branch of Ford, finances bad credit borrowers in some cases. In fact, last year Ford dropped their minimum credit score requirement altogether on 84-month loans. This ensures that a wider range of bad credit borrowers can finance through Ford if they need a vehicle.

FICO is the most commonly used credit scoring model in America, and it grades people on a scale from 300 to 850. Experian breaks credit scores out into five categories based on FICO scores. These ranges are Super Prime ranging from 781 to 850, Prime from 661 to 780, Nonprime from 601 to 660, Subprime from 501 to 600, and Deep Subprime from 300 to 500. Poor credit usually means a FICO score of 660 or below.

Ford divides borrowers into six credit tiers ranging from 0 to 5. The better your credit score, the lower the tier you sit on with Ford, and the better deals you may qualify for. The exact credit scores that Ford uses for its credit scoring tiers typically aren't advertised.

Are Fords Expensive With Bad Credit?

A captive lender such as Ford Credit typically has more flexibility when it comes to auto loans for a wide range of consumers. Independent lenders can't offer you the same discounts and financing incentives that a captive lender can. However, if you're struggling with credit issues, you may not be eligible for the same rates or deals as borrowers with better credit.

For example, the 2022 Ford Edge (MSRP $38,640 with destination) is currently being offered with a rate starting as low as 0% APR if you're in tiers 0 to 2 on the Ford credit range. However, if you're struggling with credit issues and fall into tier 5, Ford lists an APR of 13.9%. This could make it very expensive for you to finance a vehicle with bad credit.

Can You Lease A Ford With Bad Credit?

If you have poor credit, financing a vehicle is the best way to go since it can be difficult to lease a Ford, or any vehicle, with a lower credit score. Leasing is typically attractive to borrowers since you get a new car every few years, and the monthly payments tend to be lower than purchasing the same car outright.

However, when you have poor credit it may be wiser to purchase a less-expensive vehicle that you own and may have equity in when you're done. This way you also potentially have a vehicle that can be used as a trade-in to use toward the down payment on a future car purchase.

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, Automotive Content Editor

Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


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