Can I get a used car loan if I have a credit score of 540?

"I want to get a car to help build my credit. The car I want costs $15,000, but my current score is 540.

Can I get a used car if I have a credit score of 540?"

Answer
“With your credit score, you can probably find a car loan, but your interest rate will be 10% or more. With some calculations, you’re likely to spend $5,000 or more on the interest rate alone for a depreciating asset.
Instead of buying a car at an exorbitant rate, try other credit devices to build your credit. A savings loan at a credit union is a good option. Consider getting a credit card, making one purchase a month, and then paying it off.
A $15,000 car loan is just not worth getting farther into debt to increase your credit score.”
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Eric Schad
Answered on Jun 07, 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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