Hi Teach,

A FICO score below 600 indicates significant credit problems. In this environment, you almost certainly will not be able to obtain financing on reasonable terms.

Honestly, I would focus on saving funds to buy the cheapest reliable used car that will meet your needs, pay cash for it, and work on improving that credit profile. Once that is done well, financing your next car should be much more viable, should you chose to go that route.

When compared with financing a car at high interest rates, paying cash--thereby eliminating a large car payment--will do a great deal to help your financial situation. That counts double during the kinds of difficult economic times we face today.

I understand that probably isn't the advice you were hoping for, but I hope it helps.

Five different criteria play a major role in calculating FICO's auto credit score: credit history length, payment history, credit types used, new credit and outstanding balances.

Your payment history plays biggest role in your auto credit, however it is only one of many other aspects. Timely payments on your credit cards, loans and mortgages will make its impact in making or breaking your auto credit. Are you paying your bills on time? How much debt do you owe? If you were late on your payment, how often and how recently it has been? If you are paying on time your auto credit will be high.

Your outstanding balances impact your auto credit score as well. If you have many credit cards and many of them are at or near limits than your auto credit will be affected in adverse way.

Auto credit history is length of your credit report. If have just started building your credit, your auto credit score will not so good.

If you are acquiring new credit, it will reflect with high score auto credit. Your use of different credit types also accounts for auto credit.

We have seen how auto credit score is calculated. As per FICO's website, auto credit score falls from 300 to 850. The higher the auto score, the better interest rates you can get with your auto loan. If your auto credit score is 720 or above you are among prime borrowers who can get the lowest interest rate auto loans. But you will come down to subprime borrowers' list if your auto credit score is 680 or below. You can still get auto loans but you will have to pay higher interest rate. Different lending institutions operate with different criteria to evaluate your auto credit score, so shop around till you get the best option.