Will a 640 Credit Score Get Me an Auto Loan?

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Q: I’m going to make an application for an auto loan next week, however my credit score is only 640. Is that going to be enough to get a car loan, or will I be turned down every place I go?

A: It really is quite possible to successfully get an auto loan with a credit score of 640. Think about this data which comes straight from the credit rating company Experian:

Furthermore, Experian made it clear that vehicle loans for applicants having scores under 640 represented 20% of 2019 auto loans!

If you’ve a credit score around 640, you will definitely have the best expectation of qualifying for vehicle finance if you put in a request for vehicle loans online. Taking this route makes it possible to compare offers from a broader choice of loan companies and additionally you will be using the services of businesses who are a lot more accommodating in regards to approving low credit applicants. If you are not sure where to begin, look at the following list of services.

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 same strategy applies to auto loans for people with a credit score of 641, 642, 643 and 644.

Although it’s possible to submit a successful request for an auto loan or personal loan with a dismal credit score, the drawback is that interest rates are frequently much higher. You may be able to qualify for a more reasonable rate of interest if you pay a larger deposit on the car. You also can have a go at boosting your current FICO score.

How you can improve your interest rate and credit score

Let us discuss a few tips for possibly raising your credit score before you apply for a car / auto loan:

  • Clear as many outstanding debts and bills as is possible.
  • Obtain your free credit reports, check them out for errors and question any you find.
  • Several loan providers are prepared to excuse one-off slip-ups and get them wiped from your credit history. Find out if this is relevant where you’re concerned.
  • Sign up to Experian Boost to have your utilities and phone bill payments counted toward your credit rating.
  • Credit cards, decrease the amount of your credit you’re using less than 30%.