Will a 560 Credit Score Get Me an Auto Loan?
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Q: I’m hoping to try for an auto loan soon, however I’ve got a credit score of just 560. Is that good enough to obtain a car loan, or will I be declined wherever I go?
A: It’s entirely possible to apply successfully for an auto loan with a credit score of 560. Consider this information which comes from Experian:
Furthermore, Experian also highlighted that vehicle loans for borrowers having scores of under 560 represented twenty percent of 2019 auto loans!
If your credit score is close to 560, you’ll have the best luck qualifying for a car loan if you make an application for vehicle loans online. Taking this option means it is an easy task to compare offers from a large range of loan companies and you will be using the services of companies that are way more accommodating when it comes to authorising low credit score borrowers. If you aren’t certain how to start this process, take a good look at our useful recommendations list.
The same resolution applies to auto loans for those with a credit score of 561, 562, 563 and 564.
Even though you may successfully put in an application for an auto loan or a personal loan with an unfavourable credit standing, the down side is that interest rates are often higher. You might be able to qualify for a slightly more competitive interest rate if you pay a bigger deposit on the vehicle in question. You might also have a bash at boosting your own FICO score.
Greatly improve your interest rate & credit rating
Let me share a few ideas for possibly maximizing your credit score before applying for a car / auto loan:
- Request free credit reports, examine them for errors and contest those that you find.
- A few loan providers will occasionally forgive one-time mistakes and get them erased from your credit history. See if this can be applied in your case.
- Sign up for Experian Boost so that your phone and utility payments counted toward your credit score.
- Pay off as many bills and debts as possible.
- Credit cards, reduce your credit liability to less than thirty percent.