Will a 490 Credit Score Get Me an Auto Loan?
Q: I’m going to try for an auto loan next week, though my credit score is just 490. Will that be sufficient to get a car loan, or is it going to be refused wherever I try?
A: With your credit score currently at 490 it’s perfectly possible to successfully obtain an auto loan, though interest rates for loans like this could be a tad steeper than average.
Experian stated that vehicle loans for people with scores of under 490 characterized 20% of auto loans in 2019! Check down the page for car loans that might permit a 490 credit score as well as ways to improve your score.
If you’ve got a credit score in the vicinity of 490, you will probably have a good possibility of qualifying for finance if you put in an application for vehicle loans online. This will make it very easy to compare prices from a wider choice of loan providers and you’ll be using the services of companies who are much more flexible when it comes to authorising borrowers with low credit. If you are not sure where to begin, have a look at our extensive list of suggestions.
The very same strategy works perfectly for auto loans for those having credit score 491, 492, 493 and 494.
How to improve your credit rating and interest rate
Despite the fact that you may successfully submit an application for an auto loan with a low credit rating, the downside is that interest rates are often higher. You might get a more reasonable interest rate if you pay a bigger deposit on the vehicle in question. You can also attempt to boost your FICO score.
The following are some techniques for potentially increasing your credit score when you need to apply for a car / auto loan:
- Request your free credit reports, check them for errors and challenge those that you come across.
- Credit cards, reduce your credit amount to less than 30%.
- A few lenders are prepared to excuse one-time failures and get them removed from your record. Check into this if it can be applied to your situation.
- Register for Experian Boost so your telephone and utility payments count toward your credit scores.
- Pay off as many outstanding debts and bills as possible.