Will a 500 Credit Score Get Me an Auto Loan?
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Q: I’m planning to put in an application for an auto loan in the next few months, but my credit score is 500. Is that high enough to get a car loan, or will it be rejected just about everywhere?
A: With a credit score at 500 its entirely possible to apply successfully for an auto loan, although rates of interest for such loans could be a bit higher than average.
Experian stated that vehicle loans for applicants with scores under 500 accounted for 20% of all auto loans during 2019! Check beneath for any loans that may approve a 500 credit score and also strategies for enhancing your credit score.
If you’ve got a credit score near to 500, you’ll have a a fair prospect of being qualified for that loan if you make an application for vehicle loans online. Taking this path makes it an easy task to do a comparison of all the prices from a larger array of loan companies and you will also be working with lenders that are far more flexible in relation to authorizing borrowers with low credit scores. If you aren’t certain where to begin, look at our handy list of services.
Exactly the same solution works perfectly for auto loans for borrowers having a credit score of 501, 502, 503 and 504.
Greatly improve your credit rating & interest rate
Though it is possible to successfully make an application for an auto loan with a dismal credit ranking, the flipside is that interest rates are often higher. You might get a more reasonable rate if you can put more money down on the car. Also you might have a shot at enhancing your FICO score.
Allow me to share a few suggestions for possibly raising your credit score before you apply for an auto / car loan:
- Get registered on Experian Boost to get your phone and utility bill payments to count toward your credit score.
- Credit cards, cut down the amount of your credit you are utilizing below 30%.
- Various loan companies sometimes pardon one-off mistakes and get them erased from your credit history. See if this is pertinent to your situation.
- Get on top of as many outstanding debts and bills as is possible.
- Order your free credit reports, examine them for flaws and challenge any you find.