Will a 565 Credit Score Get Me an Auto Loan?
Q: I need to put in a request for an auto loan in the next few months, though I only have a 565 credit score. Is that going to be enough to get a car loan, or will it be declined every place I go?
A: It is entirely possible to successfully obtain an auto loan with a credit score of only 565. Consider this loan data which comes directly from Experian:
In actual fact, Experian also said that vehicle loans for car buyers having scores below 565 represented twenty percent of all auto loans in 2019!
If you’ve a credit score of around 565, you’re going to have the best luck being eligible for vehicle finance if you put in a request for vehicle loans online. Doing so means that it’s very easy to do a comparison of the offers from a larger variety of finance companies and you will be dealing with companies that are far more flexible with respect to approving low credit applicants. If you are not sure where to start, take a look at our handy suggestions list.
Exactly the same solution is valid for auto loans for borrowers with a credit score of 566, 567, 568 and 569.
While you may make a successful request for a personal loan or an auto loan with a lower credit score, the disadvantage is that interest rates can be much higher. You might be able to get a more competitive interest rate if you can put more cash down on the vehicle. Also you could attempt to increase your own FICO score.
How you can improve your interest rate and credit rating
Here are a few techniques for perhaps increasing your credit score when applying for an auto / car loan:
- Request your free credit reports, check them for flaws and contest those that you discover.
- Join Experian Boost to get your telephone and utility bill payments to count towards your credit score.
- Settle as many outstanding debts and bills as is possible.
- Credit cards, reduce your credit liability to below 30%.
- Certain loan companies are prepared to excuse one-off slip-ups and get them wiped from your credit history. Check into this if it can be applied where you’re concerned.