Can I get a decent APR on a car loan with a 600 credit score?
I want to purchase a new car, but I have a 600 credit score. Can I still get a decent APR with this credit score?
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Answered on May 05, 2021
“With a credit score that low, you’re not going to find any low rates for a car loan. The cutoff for a decent rate is 670.
In this instance, you’re looking at a rate that’s going to be somewhat similar to a credit card—probably between 12% and 20%.
That’s a lot of cash going to interest. Unless you need the car immediately, you might want to try raising your score by paying off some debt until you reach that 670 level.
And if you are going to finance a car, don’t forget that you’ll need full-coverage car insurance. Add that to your budget.
Also, you might want to consider getting a used car or paying cash instead of financing a new car.”
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