Can I get a car loan with a credit score of 450?

I have really bad credit from some poor decisions I made when I was younger. That said, I still need a car. Can I get an auto loan with a 450 credit score?

Answer
The reality is that you probably can get a car loan with a credit score of 450. But what you should carefully consider is whether you should.
A 450 credit score is considered poor by any lender. Despite that, subprime lenders and buy here pay here car dealerships will most likely work with you to ink a deal.
However, these types of lenders typically have unsavory reputations because they use predatory lending practices to help you get a vehicle. This translates into interest rates above 10%—often, closer to 20%. So, you’ll end up paying far more interest on a car loan than you should.
Moreover, you’re going to be upside down on the car loan for almost the entire duration of the repayment term. Upside down refers to a situation where you owe more on the loan than the vehicle is actually worth. If this is the case, you’ll be unlikely to qualify for refinancing and stuck with the super high interest rate.
Rather than looking for a car loan with a 450 credit score, you should instead look at ways to rebuild your credit, such as:
  • Paying off high-interest debt, such as credit cards
  • Paying off any charged-off or delinquent accounts
  • Getting credit-building debt, such as low-interest savings loans
The magic number you should be shooting for is a credit score between 600 and 660. Once you’ve achieved this, you can find a more attractive interest rate and avoid an upside-down car loan.
In the meantime, you can always pay cash for a car if you’re in need of transportation. As a bonus, paying for a car outright often equates to more affordable insurance rates.
But no matter how you buy the car, Jerry can help you avoid overpaying. Jerry is an insurance comparison app that shops for low prices with over 50 different insurance companies for free. You will get quotes in seconds, can make changes at any time, and if you ever have any questions, agents are just a text away!
Eric Schad
Answered on Nov 15, 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.
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