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Can I get a car loan with a 609 credit score?
I’m in the market for a new or used car. I checked my credit score and it’s kind of low. Is a 609 credit score good enough to get a car loan?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
A 609 credit score for a
car loan
isn’t optimal, but it won’t disqualify you from a car loan. This credit score puts you in the nonprime range of credit, which will result in higher interest rates.The general cutoff between nonprime and prime loans is a 660 credit score. If you can improve your credit score to 660, you will likely qualify for loans with lower interest rates.
For example: A 609 credit score qualifies you for an average new car loan APR of 6.32% and an average used car APR of 9.77%. If you have a 660 credit score, these rates decrease to 3.64% and 5.35%.
To improve your odds of obtaining a low interest car loan:
- Ask a trusted family member with good credit to cosign.
- Pay off some existing debt.
You should also look at your current debt-to-income (DTI) ratio. This is how much debt you have to pay each month divided by your monthly pre-tax income. Ideally, shoot for a DTI of 43% to qualify for a car loan.
Pro tip: Apply for preapproval at a few lenders to see what your interest rate and loan amount might be.
View full answer
- Gregory R.
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