Having below-average credit can feel like an unwinnable game. Many lenders won’t approve a loan for anyone with a score below 623, and if you are able to get financing, steep interest rates can make it difficult to keep up with payments.

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Jerry

is on your side if you’re struggling to find a car loan with a 600 credit score. In this guide, we’ll walk you through strategies for finding a lender, getting approved, and building your credit so you can level up your car loan odds.

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Can you get a car loan with a 600 credit score?

The simple answer: yes, but you’ll probably have to pay steep interest on the loan.

In general, anything under 623 is considered a bad credit score, with scores between 500 and 600 in the “subprime” category.

For a car loan, though, you generally need to have a credit score of 660 or higher in order to get decent financing options (i.e., a low interest rate).

MORE: How to buy a car with bad credit

How to find a car loan with a 600 credit score

So your credit score’s below the ideal threshold for a car loan. You can still apply for a loan from a bank, a credit union, a dealership, or another financial institution—but you may have trouble getting approved unless you strategize. Here are a few places to look for loan offers with subprime credit.

Go to your bank

Start by going to your own bank and talking to a loan specialist. If you’ve had an account with them for at least a year, your bank may be willing to help you out with a loan at a lower interest rate than other lenders. Because they have a more complete picture of your financial situation and history, you have a chance of getting a fair deal from them.

MORE:

What is a good interest rate on a car?

Check out credit unions

Credit unions are typically a great option for car loans. Unlike banks, credit unions are nonprofit organizations that work for the benefit of their members. You’ll have to become a member to get an auto loan from a credit union—but by becoming a shareholder in the company, you set yourself up for good approval odds and a potentially lower interest rate.

MORE: How to get a car loan from a credit union

Steer clear of buy here, pay here dealerships

If bad credit is making your car buying process a miserable one, you might be tempted by the promises of “buy here, pay here” (BHPH) dealerships that won’t run a credit check for auto financing. While you can almost certainly get approved by a BHPH dealership, it’s also almost always a bad idea.

In exchange for easy approval, BHPH dealerships often charge sky-high interest rates and require a huge down payment. They’re also quicker to repossess cars for missed payments than conventional lenders.

BHPH dealerships often won’t report your payment history to credit bureaus—which might sound like a good thing, but it could be a serious impediment if you’re trying to build your credit.

Key Takeaway: Look to your own bank or a credit union for a car loan with bad credit—but avoid BHPH dealerships.

How to improve your approval odds with a 600 credit score

No matter where you turn for an auto loan, you can raise your odds of getting approved with some smart negotiation tactics.

Make a large down payment

If your credit score is bad, but you have a decent amount of cash on hand, making a large down payment (20% or more of the car’s total value) can improve your chances of getting approved.

Because you’ll be paying off a smaller principal over the course of the loan, lenders may be less concerned about your ability to make those payments.

Use other documentation to prove your financial stability

Your credit score matters to lenders because it’s typically a good indicator of your likelihood of making on-time payments.

However, you can prove your ability to pay even if your score is low by bringing other documents, such as pay stubs and employment records, to demonstrate your financial stability.

Get a co-signer

One of the most reliable ways to get approved for a car loan with poor credit is to get a co-signer for the loan: that is, someone with good credit who agrees to make your loan payments if you’re unable to keep up.

If you’ve tried other strategies and been turned down for a loan, finding a co-signer might be your only option.

Obviously, your co-signer should be someone with solid finances whom you trust. Make sure to go over all the terms of the loan with them before you both sign.

MORE: How to get a cosigner for a bad credit car loan

How to raise your credit score for a car loan

Finding a car loan with a credit score of 600 or below isn’t impossible—but you’ll almost always end up with a high interest rate and pay more in the long term. If possible, it might be a good idea to wait and build your credit before applying for a loan.

Raising your credit score by as little as 23 points could put you in a much better position. Here are a few tactics that can help you quickly raise your score:

Pay down smaller debts first. This is called the “snowball method,” and it can free up your finances to tackle bigger debts.

Always pay your bills on time. Set a reminder on your phone or calendar to make sure you don’t miss a due date.

Keep your credit utilization low. Try to use no more than 30% of your available credit.

Don’t open or close any accounts. Applying for a new credit card—or closing an old one—will hurt your credit, not help it.

MORE: The best car insurance for bad credit drivers

How to find affordable car insurance with bad credit

No matter what your credit score is, you can find the lowest available rate on

car insurance

with help from

Jerry

As a licensed insurance broker and (non-judgmental car insurance super app), Jerry will take your information and search for the best rates from 50+ top insurance companies. You can review your quotes in the app, and once you’ve chosen the policy that works for you, Jerry will handle all the paperwork to get you switched over.

With Jerry, you won’t have to spend hours on the phone or filling out forms. In under two minutes, you could save hundreds of dollars on car insurance. Jerry users report an average yearly savings of over $800!

Saving money on car insurance is more than a good feeling—with the money Jerry saves you, you’ll free up your finances to improve your credit score and your chances of approval for that perfect auto loan.