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 type of car loan can I qualify for with a 500 credit score?
I have a pretty bad credit score but I need a car for transportation to a better-paying job. What car loans can I qualify for with a 500 credit score?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Unfortunately, you’re unlikely to qualify for any type of
car loan
with a 500 credit score—and you can expect a very high interest rate
if you do.Consider the following challenges for a car loan with a subprime credit score of 500:
- Most lenders won’t approve you with a credit score of 500: If you need a car immediately, your best bet is to secure a loan through abuy here pay heredealership.
- The average interest rate for a 500 credit score is around 13%: You’ll beupside down on your loanfor a long time with an interest rate this high—and that could put even more strain on your finances.
Expert tip: It will be much harder to refinance the car if you start with a high interest rate—even if your credit score gets better down the road. Consider the following financing options:
- Work on building your credit: Agood credit scoreis key to getting good loan terms if you don’t immediately need a car. Focus on paying off any debts and making regular, on-time payments before applying for a car loan.
- Find a cosigner: You’ll be able to get much better loan terms if you can find someone with a credit score of 700 or higher who’s willing tocosign the loanwith you.
- Shop around: Compare interest rates from multiple lenders before committing to a financing plan. Finding even three loan terms to compare improves your chances of finding the meat offer available—especially with a cosigner on your side.
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 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
