Can I still be approved for a $20,000 car loan if I have bad credit?

I want to get an affordable new car for $20,000, but my credit score is 667. Is this good enough to get a car loan?

Answer
Great question! Although you think you might think your credit is bad, your 667 score actually puts you in the prime category, which means you’re probably eligible for a $20,000 car loan with a decent rate!
With a 667 score, you’re not in the top tier, which ranges from 781 to 850, but you’re still in the prime level. The average car loan rate for this tier is 4.21% for a new car loan, although this will depend on your lender, your credit history, your income, and the length of your loan.
Because $20,000 is relatively inexpensive for a new car (most new cars are around $40,000), you position yourself even better for approval. So make sure to shop around and find a lender willing to work with you.
Keep in mind that you’ll also need to budget for full coverage car insurance. To make sure you find the best deal on the coverage you need, check out the Jerry app to compare personalized rates from over 50 insurance companies and get the best coverage for your new car.
Best of luck with the loan!
Eric Schad
Answered on Dec 13, 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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