Will a 625 Credit Score Get Me an Auto Loan?

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Q: I am hoping to submit a request for an auto loan soon, however I’ve got a credit score of just 625. Will that be high enough to obtain a car loan, or am I likely to be turned down wherever I try?

A: It is quite possible to successfully get an auto loan with a credit score of only 625. Think carefully about this finance data which comes directly from Experian:

Indeed, Experian highlighted that vehicle loans for customers with credit scores under 625 characterized twenty percent of auto loans in 2019!

If your credit score is close to 625, you’re going to a better odds of being approved for vehicle finance if you apply for vehicle loans online. Taking this route makes it possible to compare prices from a wider array of finance companies and will also be working together with businesses that are far more flexible in regards to authorizing low credit score applicants. If you are not sure where to begin, have a read of the following list of services.

Required Credit Score
580
Amounts
Up to $40,000
APR
Starting at 5.99%
Bad credit
Allowed
Loan Terms
2 months to 5 years
Amounts
Up to $10,000
APR
Individual rates
Bad credit
Allowed
Loan Terms
3 months to 6 years
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The very same response works well for auto loans for people with a credit score of 626, 627, 628 and 629.

Though you can successfully submit an application for a personal loan or auto loan with a bad credit score, the flipside is that interest rates can be high. It is possible that you could qualify for a more competitive rate if you’re able to put an advance payment down on the car in question. You could also attempt to increase your FICO score.

How to improve your interest rate and credit score

Below are some ideas for potentially boosting your credit score when applying for a car / auto loan:

  • Sign up to Experian Boost to get your telephone and utility payments counted toward your credit scores.
  • Certain loan companies sometimes pardon one-off issues and get them wiped from your credit history. Establish if this is relevant to your situation.
  • Credit cards, lower your credit liability to below thirty percent.
  • Get current on as many bills and outstanding debts as possible.
  • Request your free credit reports, check them for flaws and question those that you find.