What's a good interest rate for a car loan if my credit score is 550?

I have a credit score of 550. I want to buy a car, putting 20% down and financing the rest. What's a good interest rate on this loan?

Answer provided by
Eric Schad
Answered on Apr 27, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“If you’re putting 20% down, you may find that lenders are more willing to work with you. However, the rates might be higher than you anticipated and you may face rejection from some lenders.
A credit union or local bank that you have a relationship with may offer you a loan, as well as lenders that specialize in high-risk car loans. Either way, you’re probably looking at around a 10% APR.
If you take this loan, keep making your payments. Eventually, you should see a significant rise in your credit score, at which point you should refinance the loan at a lower rate.
And don’t forget to budget for car insurance, gas, and maintenance, as buyers (especially first-time buyers) forget about these aspects of having a vehicle.”

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies