My credit score is 401, so would I be approved for a car loan of $17,000? How much would I have to put down?

My car was stolen and I need a new one. Last I checked, my credit score is 401, and my next credit report won’t release until the 1st of December. Would I be approved for a $17,000 car loan, and how much would I have put down? Could I also bring home $3,000 of it?

I’m sorry your car was stolen, and you should report it as stolen if you haven’t already!
A credit score of 401 falls into the deep subprime category, the lowest category, which means you most likely will not be approved for any car loan until your credit score improves.
There’s no required downpayment price, but putting a large sum of money down and having a cosigner could improve your chances of approval.
When it comes to car loans:
  • Lenders who issue deep subprime loans hesitate to offer a loan to any applicant with a credit score below 450. You could be eligible if you have a cosigner. However, the interest rate may be so high that it’s not even worth it.
  • Some alternative lenders specialize in offering car loans to those with low credit scores, but their minimum accepted credit score is typically 500.
  • A conventional car loan lender, like a major national bank, typically won’t issue a loan to anyone who has a score below 661.
Additionally, car loans never offer direct cash to applicants, so you’ll never be approved to take $3,000 home unless it is a different type of loan, like a personal loan.
You can certainly shop around and try to find a willing lender, but your best chance of approval is to improve your credit score, and you may want to start by applying for a secured credit card.
Once you get a new car, you should download the Jerry app to find the coverage you need at the lowest rate available. Lenders will require full coverage on a financed vehicle, so you’ll need to budget for a high cost in car insurance. Jerry can help you find lower rates by comparing personalized quotes from more than 50 top providers, including Nationwide, Allstate, and Travelers, for free.
Jack Walsh
Answered on Nov 23, 2021

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