WHEELS AND WRONG SCORES — When Car Loan Approvals Are Denied by Credit Report Errors
You’ve found the perfect car, the right loan terms, and maybe even a dealership ready to hand over the keys
—until your application gets denied over a credit score you didn’t know was wrong.
Buying a car in California often hinges on your credit report. But when credit errors, identity theft, or background check issues tank your score, it’s not just frustrating—it’s legally actionable.
At R23 Law, our California Consumer Protection Attorneys help drivers fight back when credit reporting errors cost them vehicle financing.
What Credit Score Do You Really Need to Buy a Car?
There’s no one-size-fits-all number, but most lenders use a tiered system:
Credit Tier
Score Range
Typical APR (New Car)
Super Prime
781 – 850
5% and below
Prime
661 – 780
6% to 8%
Nonprime
601 – 660
9% to 12%
Subprime
501 – 600
13% to 20%+
Deep Subprime
300 – 500
Often denied or extreme terms
Even a 30-point error on your credit score could move you into a different tier—costing you thousands in interest, or worse, resulting in a denial.
Why Credit Score Errors Happen—and How They Derail Auto Financing
When you apply for an auto loan, lenders pull your credit report from major bureaus like Equifax, Experian, or TransUnion. But if any of these reports contain:
Incorrect late payments
Accounts that don’t belong to you
Identity theft-related activity
Expired debts still showing
Data furnishers reporting outdated info
…you might get rejected or face predatory interest rates.
That’s not a financial inconvenience—it’s a violation of your rights under the Fair Credit Reporting Act (FCRA) and California’s Consumer Credit Reporting Agencies Act (CCRAA).
Can You Still Get a Car Loan With a Bad or Disputed Credit Score?
Yes—and no.
Some dealerships offer “buy here, pay here” financing or subprime loans to individuals with low credit, but those come with sky-high interest rates and risky terms.
If your low score is based on inaccurate information, the smarter move is to:
Dispute the errorsAss
Asert your rights under the FCRA
Take legal action if needed
With legal help, many consumers not only correct their reports—they also recover damages for denials caused by these errors.
What R23 Law’s California Consumer Protection Attorneys Do for You
Our team investigates the source of credit reporting errors and holds data furnishers, credit bureaus, and background check companies accountable for:
Reporting false or outdated information
Failing to correct known disputes
Damaging your ability to get car loans or leases
Violating federal and state consumer protection laws
If you’ve been denied vehicle financing—or forced into predatory loan terms—because of a reporting error, you may be entitled to compensation, credit correction, and legal remedies.
The Bottom Line: Check Before You Shop
Before you walk into the dealership, walk through your credit reports.
🔹 Request your free credit reports at AnnualCreditReport.com.
🔹 Review all three bureaus (Experian, Equifax, TransUnion).
🔹 Look for errors, identity theft, or outdated accounts.
🔹 Contact R23 Law if anything looks wrong.
Don’t let someone else’s mistake determine your financial future—or put your next vehicle out of reach.
Contact R23 Law Today
If you’ve been denied an auto loan due to inaccurate credit reporting, reach out to R23 Law’s California Consumer Protection Attorneys for a free consultation. We fight for drivers who’ve been wrongfully denied vehicle financing, and we speak multiple languages to serve California’s diverse communities.
