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.

Amounts
Up to $50,000
APR
Individual rates
Bad credit
Allowed
Loan Terms
6 months to 6 years
Amounts
Up to $10,000
APR
Individual rates
Bad credit
Allowed
Loan Terms
3 months to 6 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%.