Will a 601 Credit Score Get Me an Auto Loan?
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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.
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.