Bad Credit Car Loans Online (2024)

FAQs

Can you get a car loan with a 500 credit score? ›

It's possible to get a car loan with a 500 credit score, but the lender might have other requirements, too. You might also need to earn a certain amount of money every year or have been at your job for a specific length of time. The best way to see if you qualify for an auto loan is to prequalify.

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. As interest rates increase due to inflation, securing a subprime auto loan may be more difficult — but not impossible.

Automakers such as Ford, Kia, and Hyundai are known for working with borrowers who have lower credit scores. In addition, CarsDirect has a network of dealers that specialize in bad credit car loans whether you're considering a new or used car.

What Credit Score Do You Need To Get A Car Loan? Many lenders require a credit score above 650 to get a standard car loan. However, if you have a credit score of 550, 480 or even lower, and the bank or dealership denies your application, it is still possible to get a car loan.

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.

We complete a hard inquiry into your credit history during the purchase process.

If you're looking for car brands that work with low-credit borrowers, CarsDirect says you could find luck with Ford, Kia and Hyundai. There are also specific dealerships that specialize in bad credit car loans. Another option is to shop for private sellers that are selling cars at a discount.

What credit score is needed to buy a car without a cosigner? People with prime credit scores of 661 or higher likely don't need an auto loan cosigner.

What FICO score is used for auto loans? ›

FICO Score 5 and FICO Score 8 are both common credit scores. Mortgage and auto lenders often use FICO Score 5, while credit card issuers typically use FICO Score 8.

If you need help in qualifying for a car loan or if you want someone else to be listed as a co-owner of the car, CarMax allows you to apply with a co-borrower. It does not, however, allow you to apply with a co-signer.

Lenders offer various loan amounts, but personal loans for bad credit generally range from $1,000 to $50,000. But compare potential offers—the exact amount you qualify for will vary depending on your income and how much existing debt you have.

Key Takeaways. Loan choices are severely limited with a 500 credit score. And some, like payday or title loans are not recommended. You can improve your chances of loan approval by adding a co-borrower or co-signer.

Buying a car with a 550 credit score is definitely doable with the right approach. In this guide, we'll walk you through each step of the process, from assessing your financial situation to sealing the deal.

Yes, it's possible to finance a vehicle purchase with a 500 credit score or even below that. Keep in mind, though, that you can generally expect limited options, as well as high interest rates and fees. If possible, try to improve your credit before applying.