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Can you get a car loan with poor credit?
I want to get a car loan, but I’m short on cash. I also want a reliable vehicle, so I’ve ruled out private car sales. The problem is that I have poor credit—around a 500 credit score. Can I still get a car loan with bad credit?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
In most cases, you can get a
car loan
with poor credit, even in the 500 range. However, you may not like the interest rate the lender offers you.The average car loan rates for people with lower credit scores are:
- 11.03% to 14.59% for new cars
- 17.11% to 20.58% for used cars
Yet depending on where you go for your loan, you can certainly find an interest rate that’s more or less than these averages.
If you want to get a better rate on a car loan if you have poor credit, apply these tips and hacks:
- Make a large down payment (20% or more).
- Choose a shorter loan term.
- Shop around as much as you can.
- Find a cosigner with good credit that will cosign for the car loan.
Keep in mind that your lender will require full coverage car insurance for the duration of the loan. As a result, shopping around is essential. The more you search, the better your odds for a better insurance rate.
As a licensed broker,
Jerry
helps you find and compare quotes from over 50 top providers in minutes. When you find a better rate, Jerry can help you buy your new coverage and even cancel your old policy!View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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