Can you get a car loan with a 560 credit score?

Is it possible to get a car loan with a 560 credit score? I’m a single mom with a minimum wage job. I struggle to keep up with my bills, so my credit score is low. I recently got another job with slightly higher pay, but I need a car.

Answer
Congratulations on your job! Your credit score plays a big part in determining your approval and interest rate. The chances of getting a car loan with a 560 credit score are slim, but it isn’t impossible. Here are some options that may help you finance a car:
  • Be prepared to pay high-interest rates. Usually, lenders look for applicants with a 661 or higher credit score. Anyone under 661 will likely have a higher interest rate as lenders consider them high-risk.
  • Find specialized lenders. Several lenders specialize in loans and financing for less than stellar credit.
  • Get a cosigner. If you have a family member willing to be a cosigner, you can increase your chances of approval at a lower interest rate. Having someone share the responsibility of paying off the loan with you can also help rebuild your credit.
  • Save for a downpayment. If you can, saving for a large downpayment can increase your chances of approval. The more money you can put down, the less of a risk you are.
Before you start car shopping, collect quotes from different lenders. Shopping around can help determine what you can afford and ensure you get the best rate.
Another necessary car expense you’ll want to shop around for is car insurance. A quick and easy way to find affordable car insurance is with the Jerry app. A licensed broker that offers end-to-end support, Jerry gathers affordable quotes, helps you switch plans, and will even cancel your old policy. The average Jerry user saves $879 a year on car insurance.
Phoebe Mah
Answered on Dec 06, 2021
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