Will a 400 Credit Score Get Me an Auto Loan?
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Q: I am planning to put in an application for an auto loan in the next few months, although my credit score is a miserable 400. Will that be high enough to obtain a car loan, or am I going to be declined wherever I go?
A: With your credit score at 400 it’s perfectly possible to apply successfully for an auto loan, but interest rates for loans like this might be a lttle bit higher than average.
Experian stated that vehicle loans for car buyers with credit scores below 400 represented 20% of 2019 auto loans! Check beneath for auto loans which may accept a 400 credit score plus techniques for improving your score.
With a credit score of around 400, you’ll have a pretty good prospect of approval for auto finance if you put in a request for vehicle loans online. Doing this means that it is easy to compare all the offers from a huge choice of loan companies and additionally you will be dealing with providers who are far more flexible in relation to granting loans to borrowers with low credit scores. If you aren’t sure where to start, have a look at our extensive services list.
The exact same solution works for auto loans for borrowers with credit scores of 401, 402, 403 and 404.
How you can improve your credit rating & interest rate
While you could make a successful request for an auto loan with a very low credit rating, the disadvantage is that interest rates are frequently high. It’s possible that you may be entitled to a slightly more affordable interest rate if you can put more cash down on the vehicle. You could also attempt to boost your own FICO score.
The following are some suggestions for perhaps raising your credit score before you apply for a car / auto loan:
- Various loan providers sometimes pardon one-off issues and remove them from your credit history. See if this can be applied where you are concerned.
- Pay off as many outstanding debts and bills as possible.
- Sign up to Experian Boost to have your telephone and utility payments count towards your credit rating.
- Request free credit reports, check them out for mistakes and challenge any that you uncover.
- Credit cards, decrease your credit amount to less than thirty percent.