Will a 655 Credit Score Get Me an Auto Loan?
Q: I need to submit a request for an auto loan in the next few months, however my credit score is a miserable 655. Is that high enough to obtain a car loan, or will it be rejected everywhere?
A: It’s entirely possible to successfully get an auto loan with a 655 credit score. Contemplate this data which comes from Experian:
In fact, Experian also highlighted that vehicle loans for people having scores of less than 655 represented 20% of all auto loans in 2019!
If your credit score is somewhere around 655, you will a better odds of qualifying for vehicle finance if you put in a request for vehicle loans online. Taking this course will make it simple to do a comparison of offers from a huge diversity of finance companies and you will be working with firms that are way more flexible when it comes to accepting applicants with low credit scores. If you aren’t sure where to begin, have a read of our list of suggestions.
The very same strategy holds true for auto loans for those with credit score 656, 657, 658 and 659.
Although you’ll be able to successfully put in a request for an auto loan or a personal loan with a bad credit score, the flipside is that you’ll end up paying a higher interest rate. You might be able to qualify for a more affordable rate if you pay a bigger deposit on the car in question. You might also have a bash at improving your own FICO score.
How you can improve your interest rate and credit score
Allow me to share some tips for perhaps increasing your credit score when applying for a car / auto loan:
- Credit cards, reduce your credit amount to less than thirty percent.
- Clear as many bills and debts as is possible.
- Obtain your free credit reports, examine them for flaws and challenge any that you discover.
- Join Experian Boost to get your utility and phone payments to count toward your credit score.
- Several creditors are willing to pardon one-off slip-ups and expunge them from your record. Find out if this is applicable in your situation.
