Will a 550 Credit Score Get Me an Auto Loan?

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Q: I’m intending to make an application for an auto loan this week, although my credit score is 550. Will that be sufficient to get a car loan, or will it be turned down everywhere?

A: It really is entirely possible to apply successfully for an auto loan with a credit score of 550. Look at this information which comes from Experian:

Believe it or not, Experian made it clear that vehicle loans for applicants having scores of under 550 characterized twenty percent of all auto loans in 2019!

If you have a credit score somewhere around 550, you should a better likelihood of being eligible for a loan if you apply for vehicle loans online. Doing this makes it possible to do a comparison of the prices from a huge selection of lenders and you’ll also be dealing with providers that are far more flexible with respect to accepting applicants with low credit scores. If you are not sure how to begin, inspect our list of companies.

Required Credit Score
580
Amounts
Up to $40,000
APR
Starting at 5.99%
Bad credit
Allowed
Loan Terms
2 months to 5 years
Amounts
Up to $10,000
APR
Individual rates
Bad credit
Allowed
Loan Terms
3 months to 6 years
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Exactly the same response holds true for auto loans for borrowers having a credit score of 551, 552, 553 and 554.

Despite the fact that it is possible to submit a successful request for an auto loan or personal loan with a low credit rating, the problem is that you will pay a much higher interest rate. You might qualify for a slightly more competitive interest rate if you’re able to put an advance payment down on the car. You might also have a bash at improving your current FICO score.

Improve your interest rate & credit score

Here are some strategies for perhaps elevating your credit score before applying for an auto / car loan:

  • Sign up to Experian Boost so that your utility and telephone payments counted toward your credit rating.
  • Pay off as many bills and debts as is possible.
  • Obtain free credit reports, examine them for flaws and contest those that you uncover.
  • Credit cards, lower your credit liability to less than thirty percent.
  • Many loan providers will occasionally forgive one-off slip-ups and get them expunged from your credit history. Check if this is pertinent in your situation.