Does Toyota 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 - October 3, 2022

Toyota has seven financing tiers and loan terms of up to 72 months. They're known for financing a wide range of consumers, but do they finance bad credit? Here's what we know.

What Does Toyota Consider Bad Credit?

Like many automaker's captive lenders, Toyota Financial Services relies on FICO scores to place borrowers into tiers. They use eight credit tiers, starting with 1+ and ending with tier 7. Credit scores for the tiers are:

  • Tier 1+ – FICO 720+
  • Tier 1 – FICO 719-690
  • Tier 2 – FICO 670-689
  • Tier 3 – FICO 650-669
  • Tier 4 – FICO 630-649
  • Tier 5 – FICO 610-629
  • Tier 6 – FICO 580-609
  • Tier 7 – FICO 520-579

FICO scores range from 300 to 850. Toyota Financial's credit score ranges don't encompass those borrowers with the very lowest scores, but accepting borrowers with scores as low as 520 means that Toyota does serve a wide range of borrowers that are considered to have poor credit.

Can You Finance Through Toyota With Bad Credit?

Since Toyota's credit tiers range down to 520, it's certainly possible for a borrower with bad credit to get a car loan through Toyota. Though Toyota Financial notes that borrowers with lower credit scores are subject to higher rates.

This means that even though you can finance a vehicle with Toyota's captive lender, you won't be looking at rates such as their lowest advertised deals, which run as low as 2.49% APR at the time of writing. With bad credit, you're likely to see a rate in the teens.

Can You Lease a Toyota With Bad Credit?

Toyota Financial Services also serves as a lessor for leasing a car with bad credit. However, expect the rates to be high here as well. Traditionally, it's much more difficult to lease a vehicle when you're a bad credit borrower.

Even with a low credit score and a higher money factor rate leasing could make sense for some people since your monthly costs are typically lower than with a purchase. This is because you're not paying for the entire cost of the car, only the first two or three years of its value.

And, don't expect to find the lowest-priced lease deals when you have poor credit. Incentives like those you typically see advertised are for well-qualified lessees, which means having top-tier credit.

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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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