How Can My Store Increase Auto Loan Approvals for 580-700 FICO Range Customers?
January 22, 2026
The 580 to 700 FICO score range represents one of the largest and most underserved segments of the auto-buying market.
These customers are not prime borrowers with perfect credit, but they are not deep subprime risks either. They sit in a middle ground where many traditional lenders are hesitant to approve, yet they represent a massive opportunity for dealerships willing to work with the right financing partners.
If you are asking, “How can my store increase auto loan approvals for 580-700 FICO range customers?” you are recognizing a gap that costs dealerships significant revenue every month. These near-prime and non-prime buyers often have stable jobs, reasonable income, and the ability to make payments. They just need a lender willing to look beyond a credit score that does not tell the whole story.
This guide covers why this borrower segment matters, what holds back approvals, and actionable strategies to close more deals with these customers. By the end, you will have a clear roadmap for capturing business that your competitors are leaving on the table.
Why increase your auto loan approvals for 580-700 FICO range customers
Focusing on the 580 to 700 credit score segment is not about taking on excessive risk. It is about recognizing a strategic opportunity that many of your competitors overlook.
Here is why this market segment deserves your attention and investment:
- It is a large and growing market
Approximately 30 percent of Americans have FICO scores between 580 and 700. That is nearly 100 million potential car buyers who fall outside the prime lending sweet spot. As vehicle prices have increased and loan terms have lengthened, this segment has grown. Many consumers who might have qualified for prime financing a decade ago now find themselves in near-prime territory due to medical debt, student loans, or economic disruptions.
These are not fringe customers. They are a significant portion of the car-buying public, and they need transportation just as much as anyone else. Every day, near-prime buyers walk into dealerships across the country looking to purchase vehicles. The question is whether your dealership is equipped to help them.
- Less competition means more loyalty
Prime customers have endless options. Every lender wants their business, and they can shop around for the lowest rate with minimal effort. Customers in the 580 to 700 range have fewer choices. Many banks will not touch them, and captive lenders focus on selling their brand's vehicles to prime buyers. When you help someone get approved for financing they couldn't find elsewhere, you build genuine loyalty.
These customers remember who helped them when others said no. They come back for their next vehicle, refer friends and family, and leave positive reviews. In an industry where customer retention is increasingly difficult, serving the near-prime market creates lasting relationships that pay dividends for years.
- Higher profit potential per deal
Near-prime financing often comes with higher interest rates than prime loans, which can translate to better margins for your dealership on financing reserve. Additionally, these customers may be more flexible on vehicle selection, F&I products, and deal structure. While prime buyers often arrive with pre-approvals and razor-thin rate expectations, near-prime customers are focused on getting approved and finding a payment that works for their budget.
This does not mean taking advantage of customers. It means that near-prime deals often offer the dealership more room to earn a fair return while still providing the customer with financing they could not get elsewhere. When structured properly, these deals work for everyone involved.
- Credit scores do not tell the whole story
Many borrowers in the 580 to 700 range are there because their circumstances do not reflect their current ability to pay. A medical emergency, a divorce, a period of unemployment, or simply being young with a short credit history can all result in mid-range scores. Life happens, and credit scores often reflect past hardships more than present capabilities.
The customer standing in your showroom today may have a stable job, solid income, and every intention of making their payments. Their credit score reflects something that happened three years ago, not who they are now. The right lending partner can look beyond the score to see the real person and their actual ability to repay.
How can my store increase auto loan approvals for customers with FICO scores in the 580-700 range?
Increasing your approval rates for this segment requires a combination of the right lending relationships, smart deal structuring, and efficient processes. Here are the most effective methods to implement at your dealership.
Partner with Lendbuzz
Not all lenders are created equal in the 580 to 700 segment. Traditional banks often have strict credit cutoffs and automated decline systems that reject applications without human review.
Captive lenders focus on selling their brand's vehicles to prime customers. To serve the near-prime market effectively, you need a lending partner with underwriting models designed to evaluate these borrowers fairly.
Lendbuzz specializes in exactly this space. Our AIRA technology uses alternative data and AI-based decisioning rather than relying solely on FICO scores.
We analyze thousands of data points from a borrower's bank history, including income stability, spending patterns, and overall financial behavior, to get a complete picture of creditworthiness. This allows us to approve customers that traditional lenders decline.
The difference in approval rates between a traditional lender and Lendbuzz can be dramatic, helping you sell more cars to buyers you previously had to turn away.
Structure deals to maximize approval odds
Deal structure matters enormously for near-prime approvals. A reasonable down payment reduces lender risk and can be the difference between approval and decline. Even $1,000 to $2,000 down can move a deal from decline to approval with some lenders. Guide customers toward vehicles with strong loan-to-value ratios rather than pushing them into cars at the top of their budget.
Consider the vehicle itself as well. Lenders prefer newer vehicles with lower mileage because they retain their value better and pose less risk. If a customer is set on an older, higher-mileage vehicle, they may need a larger down payment to offset the depreciation risk. Shorter loan terms, while resulting in higher payments, may be easier to get approved for with some lenders and yield better overall outcomes for the customer.
Collect comprehensive documentation upfront
Near-prime deals often require more documentation than prime deals. Lenders want to verify income, employment, and residence before approving. Train your sales team to collect proof of income, such as recent pay stubs or bank statements, proof of residence like a utility bill or lease agreement, and employment verification early in the process. Having complete documentation ready when you submit the deal speeds up approvals and reduces the back-and-forth that can kill deals.
Create a checklist for your team to use for every near-prime customer. Make it standard practice to collect these documents while the customer is still at the dealership, excited about their potential purchase. Chasing documents after the customer leaves is time-consuming and often unsuccessful.
Stop prejudging customers
One of the biggest obstacles to near-prime approvals is not the lender but the dealership itself. When salespeople prejudge customers based on appearance, the car they drive, or assumptions about their credit, they cut off the sales process before it begins. This practice costs dealerships countless sales every year.
Train your team to treat every customer as a potential buyer and to let the lender make the credit decision. You might be surprised how often a customer you assumed could not get approved actually can. The person driving a ten-year-old car might have savings in the bank and a stable job. You will never know unless you give them the opportunity to apply.
Use technology to streamline the process
Speed matters for near-prime customers. They often have limited time to shop, may be dealing with a vehicle breakdown, and can get discouraged if the process drags on. Work with lenders who offer digital applications, instant decisioning, and electronic contracting. The faster you can move from application to approval to signing, the more deals you will close.
Modern dealer portals provide real-time visibility into deal status and eliminate the need for phone calls to check on applications. Look for lenders who have invested in technology that makes your job easier, not harder. The difference between waiting hours for a decision and getting an answer in minutes can determine whether a customer buys from you or walks to the dealer down the street.
How Lendbuzz helps you approve more 580-700 FICO customers
When you partner with Lendbuzz, you get access to a lender that actually wants to approve near-prime customers.
We look at the complete financial picture: income, employment stability, bank account activity, savings, and more.
We understand that a credit score is just one data point and that many borrowers in the 580 to 700 range are perfectly capable of making their payments.
Our Express Contract feature can approve qualified deals in under three minutes, eliminating the waiting game that frustrates both dealers and customers.
Same-day funding means you get paid fast, improving your cash flow and letting you reinvest in inventory.
There are no dealer fees on Lendbuzz loans, and our portal makes it easy to submit deals and track status in real time.
Whether you are a franchise dealer or an independent lot, Lendbuzz can help you say yes to more customers with FICO scores between 580 and 700.
Ready to increase your approvals? Get started with Lendbuzz today, and start turning away fewer customers and driving more revenue for your dealership.
Key takeaways
The 580 to 700 FICO segment represents approximately 30 percent of Americans and is significantly underserved by traditional lenders. These customers offer benefits such as less competition, higher loyalty, and stronger profit potential per deal.
To increase approvals, partner with lenders like Lendbuzz that do not rely solely on credit scores. Lendbuzz's AIRA technology helps dealers approve more near-prime customers quickly with same-day funding.
A seasoned marketing professional with over a decade in the retail automotive space, Ariana regularly writes on a variety of car dealer and car buyer/borrower-related subjects.