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?

Answer provided by
Eric Schad
Answered on Apr 27, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“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.”

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