You can get a car loan with a 538 credit score, but finding a willing lender or a low interest rate will prove difficult. With a 538 credit score, you're in the subprime range of borrowers, meaning you're high-risk. As a result, you'll need to work with a lender that specializes in bad credit loans.
Your score falls within the range of scores, from 300 to 579, considered Very Poor. A 538 FICO® Score is significantly below the average credit score.
A: With your credit score at 530 it's perfectly possible to successfully get an auto loan, although the interest rates for loans like this might be a little bit higher than average. Experian said that vehicle loans for borrowers with scores below 530 represented twenty percent of all 2019 auto loans!
532 Credit Score Loan & Credit Card Options
Credit cards and auto loans offer the best approval odds for someone with a 532 credit score. For example, people with credit scores below 580 take out roughly 12% of car loans versus only 6% of mortgages, according to 2017 Equifax data.
It's possible to get a car loan with a credit score of 500, but it'll cost you. People with credit scores of 500 or lower received an average rate of 13.97% for new-car loans and 20.67% for used-car loans in the second quarter of 2020, according to the Experian State of the Automotive Finance Market report.
There is no set credit score you need to get an auto loan. If you have a credit score above 660, you will likely qualify for an auto loan at a rate below 10% APR. If you have bad credit or no credit, you could still qualify for a car loan, but you should expect to pay more.
Most auto lenders will not lend to someone with a 536 score. If you are able to get approved for an auto loan with a 536 score, it will be costly. If you can raise your credit score, getting a car will be much easier.
Auto dealerships use the FICO credit bureau, which stands for Fair Isaac Corporation. They also use the FICO Auto Credit Score, which has a range of 250 to 900. This may mean that an auto dealer has a different credit score for you than the one you see on your personal credit report.
Most auto lenders will not lend to someone with a 534 score. If you are able to get approved for an auto loan with a 534 score, it will be costly.
A 540 credit score can be a sign of past credit difficulties or a lack of credit history. Whether you're looking for a personal loan, a mortgage or a credit card, credit scores in this range can make it challenging to get approved for unsecured credit, which doesn't require collateral or a security deposit.
According to credit reporting agency Experian, more than 21% of auto loans in the fourth quarter of 2018 were extended to borrowers with subprime (501-600) or deep subprime (500 or below) credit scores. So, the answer is yes, you can buy a car with that credit score.
The lowest credit score Nissan will finance is 580 FICO. This is through their lending division known as NMAC (Nissan Motors Acceptance Corporation). You will receive a Tier 9 rate around 13%. You should always consider improving your credit score first before applying for subprime loans.
Credit Cards for a 538 Credit Score
The one thing anyone with a 538 credit score should do is open a secured credit card. Even if you don't use it to make purchases, a secured card can help improve your score by adding positive info to credit report on a monthly basis. It won't give you an emergency loan, though.
A 538 FICO® Score is considered “Poor”. It means you've had past payment problems, including collection accounts, judgments, bankruptcy or worse. With a “Poor” score, it's harder to obtain credit cards, loans, and favorable interest rates.
Equifax scores range from 0-700. 380-419 is considered a fair score. A score of 420-465 is considered good.
A credit score below 579 is considered poor, which means that getting approved for a car loan with good terms with a credit score of 533 is unlikely. Most lenders choose not to approve car loans for people with poor credit scores. Because of this, your options to borrow money or finance are limited.
Although a 650 credit score is desirable for any loan, first time car loans may require a score of 680 or higher to waive any co-signer requirements.
Utilization rate contributes as much as 30% of your FICO® Score. Late or missed payments. Paying bills consistently and on time is the single best thing you can do to promote a good credit score. This can account for more than a third (35%) of your FICO® Score.
The recommended credit score needed to buy a car is 660 and above. This will typically guarantee interest rates under 6%.
The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus. This means a couple of things: The scores we provide are actual credit scores pulled from two of the major consumer credit bureaus, not just estimates of your credit rating.
When you visit a dealer and decide to purchase a car, fill out the loan paperwork and give the dealer permission to run a credit check, that generates a hard inquiry on your credit report. Hard inquiries will reduce your credit score anywhere from 5-10 points for about a year.
With a credit score of 530-539, you should qualify for a subprime APR rate, which will be higher than someone with a 700 or 800 credit score. The average rate for a used car loan in the 530 to 539 credit score range is 17.29% (47% higher than the average rate for a new car).
If you qualify for a credit card (secured or unsecured), it will likely have a low limit and a high interest rate. If you get a credit card with a 530 score, you can expect an average interest rate of 21 percent.
Your score falls within the range of scores, from 300 to 579, considered Very Poor. A 539 FICO® Score is significantly below the average credit score.