Will a 480 Credit Score Get Me an Auto Loan?

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Q: I am intending to submit an application for an auto loan next week and my credit score stands at 480. Will I be able to obtain a car loan, or will it be declined everywhere I go?

A: With your credit score currently at 480 it’s perfectly possible to successfully get an auto loan, though the interest rates for such loans are often a lttle bit steeper than normal.

Experian said that vehicle loans for people with credit scores below 480 represented 20% of all auto loans in 2019! Check below for any loans that may permit a 480 credit score along with techniques for improving your score.

With a credit score close to 480, you’ll have a a reasonable prospect of approval for that loan if you submit a request for vehicle loans online. Doing so will make it actually possible to compare all the offers from a wider range of finance companies and will also be dealing with businesses that are much more flexible in relation to approving loans to low credit borrowers. If you aren’t sure how to go about this, have a read of our useful list of recommendations.

Amounts
Up to $10,000
APR
Individual rates
Bad credit
Allowed
Loan Terms
3 months to 6 years
Amounts
Up to $5,000
APR
Individual rates
Bad credit
Allowed
Loan Terms
3 months to 3 years
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The very same strategy applies to auto loans for those with a credit score of 481, 482, 483 and 484.

How you can improve your interest rate and credit score

While it’s possible to submit a successful request for an auto loan with an unfavourable credit score, the drawback is that you’ll pay a much higher interest rate. You might receive a more affordable rate of interest if you pay a more substantial deposit on the vehicle in question. You can also have a shot at increasing your own FICO score.

Let me share some techniques for potentially maximizing your credit score when applying for an auto / car loan:

  • Pay off as many outstanding debts and bills as is possible.
  • Register for Experian Boost so that your utility and phone payments counted toward your credit scores.
  • Order your free credit reports, check them out for mistakes and question those that you find.
  • A number of lenders sometimes forgive one-off issues and eliminate them from your record. See if this is pertinent in your situation.
  • Credit cards, lower your credit liability to less than thirty percent.