Bad Credit Car Loans Online (2024)

FAQs

Can a 500 credit score get me a car? ›

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.

If you have a lot of debt gathered from other loans or credit cards, your DTI ratio — or debt-to-income ratio — will be higher. A DTI ratio of 50 percent or higher may lead to rejection. Paying down your debts is the best way to lower your DTI, but if you're able, a second source of income can also lower your DTI.

It's possible to get approved for an auto loan if you have bad credit (sometimes called "deep subprime" credit), meaning a credit score under 580. But in many cases, options can be costly. To improve your odds of getting approved for a relatively affordable loan, follow these steps.

There isn't one specific score that's required to buy a car because lenders have different standards. However, the vast majority of borrowers have scores of 661 or higher.

For example, Kia is known for offering affordable and reliable vehicles. Some Kia dealerships may sell cars for people with bad credit. Like Kia, Hyundai is known for providing affordable cars. Hyundai dealerships might have financing options for buyers with poor credit.

When you pre-qualify with Carvana, you see real, personalized terms without affecting your credit score. Though your terms will not change, we do complete a formal credit inquiry when you schedule your delivery or pickup.

What happens if I can't get approved for a car loan? ›

While a denied auto loan doesn't affect your credit score, hard credit pulls could lower your score by five points, even if the associated loan isn't approved. To prevent penalty, make sure to complete all of your credit checks and compare loan options within what is typically a 14-day shopping window.

Refinance Your Car Loan

Depending on your situation, you may be able to get a loan with a longer repayment term than what you have left on your current term, which can help reduce your monthly payments. For example, if you have 24 months left on your auto loan, you could refinance with a 36-month loan.

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 credit score do auto lenders look at? The three major credit bureaus are Experian, TransUnion and Equifax. The two big credit scoring models used by auto lenders are FICO® Auto Score and Vantage.

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.

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.

A 500 credit score is in the bad credit score range. Your credit score determines whether you qualify for financial products, like credit cards and car loans, and what interest rate you might pay. In April 2023, about 3% of Americans had a score lower than 500, according to credit scoring company FICO.

Fortunately, you don't have to stay at 500 forever. By making timely payments, monitoring how much of your available credit you're using and taking other positive steps, you can be on your way to rebuilding your credit.

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.