Will a 620 Credit Score Get Me an Auto Loan?
Q: I’ve got to put in an application for an auto loan next week, although I’ve only got a 620 credit score. Is that good enough to get a car loan, or will I be declined wherever I go?
A: It’s entirely possible to apply successfully for an auto loan with only a 620 credit score. Consider this information which comes straight from Experian:
In fact, Experian also stated that vehicle loans for customers having credit scores under 620 accounted for 20% of all auto loans during 2019!
If you have a credit score in the region of 620, you are going to a better odds of being approved for a loan if you submit a request for vehicle loans online. Doing so will make it an easy task to do a comparison of all the prices from a larger array of providers and additionally you will be working together with businesses who are a lot more accommodating when it comes to authorizing low credit borrowers. If you’re not certain how to start this process, check our handy list of services.
Precisely the same strategy works perfectly for auto loans for borrowers with a credit score of 621, 622, 623 and 624.
While you may put in a successful application for an auto loan or personal loan with a low credit ranking, the downside is that interest rates tend to be higher. It’s possible that you might qualify for a slightly more reasonable rate if you can put more cash down on the vehicle in question. Also you could try to increase your own FICO score.
How you can improve your credit rating and interest rate
Let me share a few ideas for possibly improving your credit score when applying for an auto / car loan:
- A few creditors are willing to excuse one-time issues and wipe them from your credit history. Establish if this is relevant where you’re concerned.
- Settle as many debts and bills as possible.
- Request free credit reports, check them for flaws and dispute any you find.
- Credit cards, lower the amount of your credit you are using below 30%.
- Join Experian Boost so that your telephone and utility payments counted toward your credit score.