PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
What car loan can I get with a 650 credit score?
I checked my credit score because I keep reading it's the first thing you should do when thinking of buying a car. It’s 650. What kind of car loan can I get with a 650 credit score?
Sarah Gray · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
You may be able to get a car loan with a 650 credit score, but you might not like the terms and conditions of the loan if you do.
Since lenders use your score to determine your loan’s APR, the average interest rate you can expect to pay is 11.69% for a new car loan. That’s not great.
However, there are ways to improve your chances of qualifying for a loan with a lower interest rate:
- Review your credit report: Your first step is to go over your credit reports and make sure they’re accurate. If you find any errors, work with the creditor or credit bureau to straighten things out.
- Work on your credit score: Pay your bills on time, keep an eye on your credit utilization, and don’t close any lines of credit. Any time you pay off a loan or close an account your credit score will take a temporary hit—and now is a bad time for that.
- Make a larger down payment: The down payment is how much you’re able to pay toward the sticker price of the car upfront. A higher down payment can improve your odds of qualifying for the loan and getting a better interest rate. Shoot for 20% of the sticker price if you can afford it.
- Get a cosigner: A cosigner is someone with better credit than you who is willing to sign on to your car loan. They will likely need to have a score of 660 or higher to improve the interest and terms of the loan for which you qualify.
Keep in mind: If you get a car loan you are unhappy with, know that you aren’t necessarily stuck with it. Upon improving your credit after several on-time loan payments, you may be able to refinance into a loan with more favorable terms.
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.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
