FAQs
In general, you'll need a FICO credit score of at least 600 to qualify for a traditional auto loan. However, the minimum credit score required with vary from lender to lender.
Can I get a car loan if my credit score is 500? ›
It's possible to get a car loan with a credit score of 500, but it'll cost you. People with credit scores of 500 or lower received an average rate of 14.08% for new-car loans and 21.32% for used-car loans in the first quarter of 2023, according to the Experian State of the Automotive Finance Market report.
What's the lowest credit score you can get a car loan with? ›
Most used auto loans go to borrowers with minimum credit scores of at least 675. For new auto loans, most borrowers have scores of around 730. The minimum credit score needed for a new car may be around 600, but those with excellent credit often get lower rates and lower monthly payments.
Will I get approved with a 500 credit score? ›
You can borrow money with a 500 credit score, but don't expect great options. Bad credit personal loans will emphasize your income more than your credit score. Securing a loan with a 500 credit score may be challenging, but that doesn't mean every lending door is closed.
How big of a loan can you get with 500 credit score? ›
The maximum amount you can get for a credit score of 500 will depend on the lender. As mentioned, some lenders will consider granting loans up to $10,000. There are other lenders who don't have a minimum credit score.
What is the minimum credit score for car finance? ›
There is no minimum credit score required to be approved for car finance for a number of reasons: – Different finance providers will use different third-party credit reference agencies to retrieve your credit score. A person's credit score will be different across providers as their scoring systems are unique.
What is the easiest car company to get financing? ›
The best car loans for bad credit
- Best for shopping around: myAutoloan.
- Best for buying a car online: Carvana.
- Best from a big bank: Capital One Auto Finance.
- Best for used vehicle selection: CarMax Auto Finance.
- Best for refinancing: Autopay.
What FICO score do car dealers use? ›
The base FICO score is also called FICO Score 8 or 9. It's not designed specifically for auto loans, but many lenders use it. It's a number between 300 and 850, and a higher score means that a person is more likely to make loan payments on time.
What credit score is pulled to buy a car? ›
The credit score required and other eligibility factors for buying a car vary by lender and loan terms. Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.
What credit score is too low for a loan? ›
There's no universal minimum credit score for personal loans; it varies by lender. Some may approve loans for scores as low as 580 or even 300, but scores above 640 often secure the best terms.
The time it takes to raise your credit score from 500 to 700 can vary widely depending on your individual financial situation. On average, it may take anywhere from 12 to 24 months of responsible credit management, including timely payments and reducing debt, to see a significant improvement in your credit score.
What credit card approves a 500 score? ›
Comparing the best cards for a 500 credit score
Card name | Annual fee | Security deposit |
---|
Discover it Secured® Secured Credit card | $0 | $200 |
Petal® 2 “Cash Back, No Fees” Visa® Credit card | $0 | None |
Mission Lane Visa® Credit card | $0 to $59 | None |
Indigo® Mastercard® | $0 to $99 | None |
2 more rowsJan 25, 2024
How long does it take to go from 550 to 600 credit score? ›
For instance, going from a poor credit score of around 500 to a fair credit score (in the 580-669 range) takes around 12 to 18 months of responsible credit use. Once you've made it to the good credit zone (670-739), don't expect your credit to continue rising as steadily.
What is the easiest loan to get approved for? ›
What is the easiest loan to get approved for? The easiest types of loans to get approved for don't require a credit check and include payday loans, car title loans and pawnshop loans — but they're also highly predatory due to outrageously high interest rates and fees.
What APR will I get with a 500 credit score? ›
Auto loan interest rates by credit score
Credit score | Average APR, new car | Average APR, used car |
---|
Prime: 661-780. | 6.89%. | 9.04%. |
Nonprime: 601-660. | 9.62%. | 13.72%. |
Subprime: 501-600. | 12.85%. | 18.97%. |
Deep subprime: 300-500. | 15.62%. | 21.57%. |
2 more rows5 days ago
Who will give me a loan if no one else will? ›
How Can I Get a Loan If No One Will Approve Me? Specialist lenders offer bad credit loans with more flexible approval criteria. Provide a larger deposit, use a guarantor, or secure the loan against an asset. Shop around and compare lenders.
What credit score do I need for a 5000 car loan? ›
Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.
Is 550 a good credit score to buy a car? ›
When you have bad credit – say, a credit score around 550 – getting approved for a car loan can be difficult. While you should try for a pre-approval with your bank or credit union, you more than likely are going to need a subprime lender.
What credit score is checked to buy a car? ›
FICO is an acronym that stands for: Fair Isaac Corporation, the company that developed the FICO® credit scoring. FICO® credit scores are the auto industry standard for determining a potential buyer's creditworthiness.
Can I get a car with a 517 credit score? ›
There's no specific minimum credit score required to qualify for a car loan. Still, if you have poor credit, it could be difficult to get approved for a car loan. Even with the best auto loans for poor credit, watch out for high interest rates, which can make it very expensive to borrow money.