Discovering you are considered a “sub-prime” borrower is probably not the highlight of your car buying experience, but it doesn’t necessarily mark the end of it either. The term sub-prime borrower simply means you are one with poor credit. It doesn’t necessarily mean you cannot obtain a decent car loan on a used Toyota, just that you may have higher interest rates on the loan. Typically one with a credit score less than 620 will be considered a sub-prime borrower.

Finding a lender will to work with you may be a bit difficult. However, those who are eager to lend to sub-prime borrowers may be out to simply make money. All lenders make money off of their loans. However there is a distinct market that is out to take advantage of such borrowers. In order to obtain the best possible rate on your auto loan in is imperative that you take control of the process. Simply knowing your credit score before applying will put you in a different playing field than others.

Take the time to check your personal credit report and determine if everything on it is accurate. Do your best to improve your credit score as much as possible prior to applying for an auto loan. It used to be that credit scores could only be viewed by lenders. Now there is no excuse for anyone to be unaware of their credit score.

Once you have applied for and accepted a loan, continue to make improvements to your credit score. Not only will this help you in other loan experiences, it will allow you to refinance your current auto loan for a more affordable loan at a lower interest rate.