Can I get a car loan as 20-year-old with a 540 credit score?

My credit score is currently at 540. However, I've never missed any payments. I think the problem lies in the fact that one of my credit cards is maxed out. Can I still get a car loan with this score?

Apr 27, 2021
Answer provided by
Eric Schad
Answered at Apr 27, 2021
“With a score that low, you probably won’t get approved for a car loan unless you make a substantial down payment, probably 50% or more.
So instead of getting a car loan, the best advice is to pay off your credit card. Not only will this absolve you of high-interest debt, but it will also raise your credit score in the process.
Because you’re only 20, you also don’t have a lot of credit history. As such, it will take some time to build it up. In the meantime, consider purchasing a car with cash until you have the credit to get a car loan.”
Car Loans

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies