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?

Answer
Checking your credit score is always a smart first move when it comes to car loans. Lenders use your score to determine your loan’s APR. While it’s not the only factor, it is one of the bigger factors.
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. Your score is considered fair, so the average interest rate you can expect to pay is 11.69% for a new car loan. That’s not great.
But you can do a few things about it, including:
  • Work on your credit score
  • Make a larger down payment
  • Get a cosigner
Working on your credit score means your first step is to go over your credit reports and make sure they’re accurate. In today’s world of hacks and data breaches, you might find some errors in your report. If you do, work with the creditor or credit bureau to straighten things out.
Also, make sure to pay your bills on time, 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’s a bad time for that.
The down payment is how much you’re able to pay toward the sticker price of the car up front. The more you can handle, the less you’ll need to borrow. This 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.
If all else fails, you could get a cosigner. A cosigner is someone with better credit than you who is willing to sign onto 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. 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.
You can do this quickly and easily with the Jerry app. Jerry removes the hassle by instantly connecting you with top companies so you can compare offers from multiple lenders to find the best option for you. On average, car owners who refinance save $85 a month on their loans.
Lauren Smith
Answered on Nov 19, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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