Can I get a car loan with a subprime credit score?

I have a credit score of about 600, so I'm nervous about car loan approval. Will lenders work with me?

Answer
A subprime credit score, which is generally considered a score between 500 and 600, doesn’t necessarily eliminate you from getting a car loan, but it’s definitely going to be a bit more difficult.
To get a car loan with your credit score, you would either need to have a huge down payment or you would need to get a cosigner with exceptional credit and steady income. By doing one of these, you can likely cut your interest rate and get approval for the car loan.
If neither of these is an option, different types of lenders work specifically with people who have poor credit. Buy here pay here dealerships and online lenders may offer you a loan, but be aware that the interest rates are going to be much higher. In 2021, the average rate for subprime borrowers was 11.03% for new cars and 17.11% for old cars.
As a result, you should think long and hard about getting a loan from one of these places, as it can cost you thousands of dollars extra over the life of the loan.
If you can find a cosigner or co-borrower and you get approved, don’t forget about getting the right car insurance to protect your vehicle. That’s when Jerry can help. Sign up in just a few minutes, input your information, and compare quotes from up to 50 insurers—so you always get the best price.
Eric Schad
Answered on Nov 03, 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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