A 645 credit score puts you in the nonprime range for all credit scores, which is about right in the middle. In the case of a car loan
, you can probably find a lender to approve you, but you might not fall in love with the interest rate they provide you. The average car loan interest rate for someone with your credit score is 6.61% for a new car or 10.49% for a used car; not optimal, but hardly the worst rates you’ll find. If you have steady income and a low debt-to-income ratio, you should be able to find a lender willing to give you a decent rate.
Keep in mind that the length of the loan and the amount of your down payment
will also factor into how much you’re going to pay in interest. Shopping around for a car loan is the only surefire way to make certain you can get the best rate and starting with local banks and credit unions might yield better results. If you can find a decent rate, use the time to start rebuilding your credit score, wait six months to a year, and then see what your credit score looks like then.
Once you do get that loan, remember to shop around for car insurance. Lenders will require you to carry full coverage for your financed vehicle, which can get pricey. That’s where the number-one-rated car insurance app, Jerry
comes in. Jerry compares rates with more than 50 top providers, including Nationwide, Allstate, and Travelers, and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance! MORE: How to get a cosigner for a bad credit car loan