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.
A: With your credit score at 520 it is entirely possible to successfully get an auto loan, but interest levels for loans like this may be somewhat higher than average. Experian stated that vehicle loans for borrowers with scores of under 520 accounted for 20% of auto loans in 2019!
The Bottom Line. If you have a 550 credit score, you may still be able to get approved for an auto loan. In addition to the right documents, a possible cosigner, and larger down payment, you also need to work with the right lender.
A: With your credit score at 540 it is perfectly possible to successfully get an auto loan, although interest levels for these loans might be a little higher than average. Experian said that vehicle loans for car buyers with scores of under 540 accounted for twenty percent of auto loans in 2019!
With a credit score of 550-559, 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 550 to 559 credit score range is 17.29% (47% higher than the average rate for a new car).
525 Credit Score Loan & Credit Card Options
Credit cards and auto loans offer the best approval odds for someone with a 525 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.
Answer provided by. Unfortunately, 524 falls into the very poor range of 300 to 579, meaning that it is a bad credit score because it is below the average credit score. However, you can still get a car loan with this credit score!
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.
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.
Trying to qualify for an auto loan with a 505 credit score is extremely expensive, if not downright impossible. There's too much risk for a car lender without charging extremely high interest rates.
With a 450 credit score, you may not get approval for a car loan without going through a specialized lender. A 450 credit score is in the deep subprime range, and most banks and credit unions aren't willing to work with such a high-risk candidate.
“A typical down payment is usually between 10% and 20% of the total price. On a $12,000 car loan, that would be between $1,200 and $2,400. When it comes to the down payment, the more you put down, the better off you will be in the long run because this reduces the amount you will pay for the car in the end.
The one thing anyone with a 520 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.
While 526 is not a good credit score for a car loan, you can usually qualify with the help of a co-signer. As long as your co-signer has good credit, you shouldn't have a problem securing a loan with them.
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.
557 Credit Score Loan & Credit Card Options
Credit cards and auto loans offer the best approval odds for someone with a 557 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.
Buying a car with a credit score of 560 is possible, but you're most likely going to have an extremely high interest rate. People with bad credit – if approved for a loan – are always offered higher interest rates than someone with a credit score even 80 points higher than their score.
Trying to qualify for an auto loan with a 573 credit score is extremely expensive, if not downright impossible. There's too much risk for a car lender without charging extremely high interest rates. Even if you could take out an auto loan with a 573 credit score, you probably don't want to.