Can I get approved for a car loan with a 500 credit score and a 25% down payment?
I want to finance a used car. I currently make about $3,000 a month and I can put down about 25% ($2,500) toward a down payment. The only problem is that my credit score is 500. Can I still get approved for a car loan?
“With a credit score of 500, it’s highly unlikely that any bank or credit union will approve you for a loan. You’re considered too high-risk.
A smarter play would be to take that $2,500 and buy a car that’s $2,500. By doing so, you won’t have to worry about approval, your car is already paid for, and you can focus your efforts on paying off other debt and repairing your credit score.
Until you hit about 600 on your credit score, either approval for anything will be nonexistent or you’ll pay an exorbitantly high interest rate. Don’t take out more debt when you have better options to repair your credit.”
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