Many lenders require a credit score above 650 to get a standard car loan. However, if you have a credit score of 550, 480 or even lower, and the bank or dealership denies your application, it is still possible to get a car loan. In fact, there is no score that is officially too low to get a car loan.
It's possible to get approved for an auto loan if you have bad credit (sometimes called "deep subprime" credit), meaning a credit score under 580. But in many cases, options can be costly. To improve your odds of getting approved for a relatively affordable loan, follow these steps.
The amount of money you can get through a personal loan with a credit score of 480 may not be very much. You may be able to get a few hundred dollars through payday loan organizations, or a few thousand through a secured loan like a title loan.
Getting a loan with 450 credit score is possible
Below that, you can go to credit unions or other private institutions. Anything lower than 600 is considered as risky territories and these firms do not extend loans without the presence of a co-signer.
Most used auto loans go to borrowers with minimum credit scores of at least 675. For new auto loans, most borrowers have scores of around 730. The minimum credit score needed for a new car may be around 600, but those with excellent credit often get lower rates and lower monthly payments.
What Is the Minimum Score Needed to Buy a Car? In general, lenders look for borrowers in the prime range or better, so you will need a score of 661 or higher to qualify for most conventional car loans.
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.
There's no specific minimum credit score required to qualify for a car loan. Still, if you have poor credit, it could be difficult to get approved for a car loan. Even with the best auto loans for poor credit, watch out for high interest rates, which can make it very expensive to borrow money.
Buying a car with bad credit — a credit score between 300 and 579 — is possible, but it may be more challenging and expensive. However, the cost of your loan may be far lower with a bank, credit union or online lender than with a dealership.
Your score falls within the range of scores, from 300 to 579, considered Very Poor. A 480 FICO® Score is significantly below the average credit score. Many lenders choose not to do business with borrowers whose scores fall in the Very Poor range, on grounds they have unfavorable credit.
Car Loans with a 482 Credit Score
As a result, your odds of getting approved for a decent auto loan are slim. You will need to compare your options carefully and consider either placing a bigger down payment or purchasing a vehicle that's less expensive.
A 487 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.
CarMax® is an auto financing company that uses the FICO® Score.
In general, you'll need a FICO credit score of at least 600 to qualify for a traditional auto loan, but the minimum credit score required with vary from lender to lender. As interest rates increase due to inflation, securing a subprime auto loan may be more difficult — but not impossible.
After researching the car finance industry, we think that myAutoloan is best for those with bad credit. The company offers auto refinancing, lease buyouts and loans for new and used cars. Additionally, the marketplace only requires a credit score of 575 — making it easier for subprime borrowers to get a loan.
Less than 7% of auto loans go to people with a credit score in the 300-539 range, and the share of loans given to applicants with a 487 credit score in particular is likely just a small fraction of that.
Car Loans with a 484 Credit Score
As a result, your odds of getting approved for a decent auto loan are slim. You will need to compare your options carefully and consider either placing a bigger down payment or purchasing a vehicle that's less expensive.
A lot of new credit can hurt your credit score. While many factors come into play when calculating your FICO credit score, you may start to see your auto loan raise your credit score in as few as 60 to 120 days. But remember, everyone's credit situation is different, so your results may vary.
editorial guidelines here . While there is no set credit score to get an auto loan, a majority of approved borrowers have scores above 660.
Aside from your usual information, car dealerships will also obtain information such as any previous loan defaults or repossession, late payments, signs of bankruptcy, and history of credit repair. This information will help your dealership decide how to approach your car financing application.
FICO® credit scores are the auto industry standard for determining a potential buyer's creditworthiness.
The base FICO score is also called FICO Score 8 or 9. It's not designed specifically for auto loans, but many lenders use it. It's a number between 300 and 850, and a higher score means that a person is more likely to make loan payments on time.