Will a 601 Credit Score Get Me an Auto Loan?

Go to best loans »

Advertiser Disclosure: CompareAuto.loan may receieve compensation for the products listed. Read our full Advertiser Disclosure

Q: I’ve got to put in an application for an auto loan tomorrow, although I only have a credit score of 601. Will that be good enough to get a car loan, or will my application be declined wherever I go?

A: It is quite possible to successfully obtain an auto loan with a credit score of only 601. Look at this finance data from Experian:

In actual fact, Experian also stated that vehicle loans for people having scores of under 601 characterized 20% of all 2019 auto loans!

With a credit score near to 601, you’re going to have the best probability of being eligible for a loan if you make an application for vehicle loans online. This means it is actually possible to do a comparison of the prices from a large diversity of loan companies and you’ll be working together with companies that are a lot more accommodating in relation to authorising low credit borrowers. If you’re not sure how to begin this process, take a look at our extensive services list.

Required Credit Score
550
Amounts
Up to $35,000
APR
Starting at 6.90%
Bad credit
Allowed
Loan Terms
2 months to 7 years
« Show more alternatives »

The exact same solution works perfectly for auto loans with credit scores of 602, 603, 604 and 605.

Even though it is possible to successfully try for a personal loan or an auto loan with a lower credit standing, the disadvantage is that interest rates will be higher. It is possible that you could get a slightly more competitive rate of interest if you pay a larger deposit on the car in question. You could also attempt to raise your own FICO score.

Improve your interest rate & credit rating

Here are a few suggestions for potentially elevating your credit score prior to applying for an auto / car loan:

  • Many lenders will occasionally pardon one-time issues and eliminate them from your record. Establish if this is relevant in your case.
  • Sign up for Experian Boost to get your phone and utility bill payments to count toward your credit rating.
  • Credit cards, decrease the amount of your credit you’re using less than 30%.
  • Get up-to-date on as many bills and outstanding debts as possible.
  • Obtain your free credit reports, examine them for errors and challenge those that you uncover.