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.
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.
Whether your credit score is 600 or 800, you will need to provide your lender with some documentation proving your ability to repay your loan. This includes: Proof of employment via a pay stub - you generally need to make at least $1,500 per month to qualify for an auto loan.
However, even consumers with credit scores of 600 or less can get approved for an auto loan. Most banks and credit unions don't offer car loans to individuals with low (or subprime) credit scores.
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.
FHA loans are intended for people with lower credit; they allow a minimum credit score between 500 and 580. If your FICO score is below 580, you'll need a 10% down payment. If it's above 580, you only need to put 3.5% down.
For best results, you should aim for at least a FICO score of 660 before applying for a new car loan.
It's not impossible to get a car loan with a credit score of 606, but you may have to agree to more expensive terms. Your credit score is a reflection of your ability to pay off debt on time and in full. A credit score of 606 is considered nonprime and can concern lenders.
A 609 credit score for a car loan isn't optimal, but it won't disqualify you from a car loan. This credit score puts you in the nonprime range of credit, which will simply make your interest rates higher than someone with a better credit score. The general cutoff between nonprime and prime loans is a 660 credit score.
A: It's entirely possible to apply successfully for an auto loan with only a 620 credit score. Consider this information which comes straight from Experian: In fact, Experian also stated that vehicle loans for customers having credit scores under 620 accounted for 20% of all auto loans during 2019!
You should be able to get a car loan with a 603 credit score without a problem. Truthfully, people can get a car loan with almost any credit score—the difference will be what kind of interest rate you can secure. A score of 603 may get you an interest rate of between 11.92 percent and 4.68 percent on a new car loan.
A 601 FICO® Score is considered “Fair”. Mortgage, auto, and personal loans are somewhat difficult to get with a 601 Credit Score. Lenders normally don't do business with borrowers that have fair credit because it's too risky.
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.
Not only might you need to have a decent-to-good credit score to secure a no-money-down loan, but having a good credit score (at least 680 points) is also the best way to prevent a lender from increasing the interest rate they would've given you on a conventional loan.
While a credit score of 630 isn't the best, it's far from the worst. A 630 credit score should be good enough for a car loan, so long as you: Prepare for high interest rates—Lower credit means higher interest rates, so check to see how much of an additional monthly cost you can afford.
An individual with a 609 credit score will typically receive a credit card interest rate of between 20.5 and 16.5 percent. In comparison, someone with excellent credit can receive an average credit card interest rate of 13.5 percent.
The recommended credit score needed to buy a car is 660 and above. This will typically guarantee interest rates under 6%.
A: It's quite possible to apply successfully for an auto loan with a credit score of only 604. Contemplate this loan data which comes from Experian: Furthermore, Experian stated that vehicle loans for applicants with credit scores below 604 characterized twenty percent of all auto loans during 2019!
Lenders know you have few options with a 604 score, and some will try to take advantage of you. For example, you might be approved for loans with an incredibly high interest rate and strict loan terms. You'll want to be careful and thoroughly research any new loans you take on.
Don't worry too much, though—you can totally find a decent car loan with a score of 607. A 607 credit score is considered nonprime, so you can expect your car loan's APR to be somewhere between 6.32% and 9.77%. Lenders reserve the best rates for applicants with credit scores of 661 and above.
When you make a timely payment to your auto loan each month, you'll see a boost in your score at key milestones like six months, one year, and eighteen months. Making your payments on time does the extra chore of paying down your installment debt as well.
Answer provided by. While your friend is right that your credit score is considered fair, that doesn't mean securing an auto loan is impossible! With a 640 credit score, a new car loan interest rate hovers around 6.5% and a used car loan sits at about 10.5%. A credit score of 640 is below the national average of 710.
The types of programs that are available to borrowers with a 630 credit score are: conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, and non-prime loans. With a 630 score, you may potentially be eligible for several different types of mortgage programs.
A 605 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.
508 Credit Score Loan & Credit Card Options
Credit cards and auto loans offer the best approval odds for someone with a 508 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.