What's considered bad credit for a car loan?

I have a 510 credit score, but I want to get a car loan. Is this considered bad credit? Will I still be able to get a car loan?

When approving loans, most lenders classify credit scores in categories of prime, near-prime, or subprime. In most cases, a 661 credit score is the cutoff point between prime and subprime credit scores, while 600 to 660 is considered near-prime. These levels can affect what loans you get accepted for and your interest rate on a car loan and other loans.
With a 510 credit score, you fall into the deep subprime range. In this range, you’re unlikely to get a car loan from a bank or credit union. But you may have luck with a “buy here pay here” dealer or with lenders that specialize in loans for high-risk borrowers. If you get approved, keep in mind that you’re going to receive an interest rate that’s extremely high—often in the 20% range.
You could put off buying a car until you build your credit as paying off debt will be more beneficial than adding another debt. That said, if the car is a necessity for work, you may have few other options.
If you go to a buy here pay here joint or another lender, make sure to budget for full coverage car insurance. With the Jerry app, you can sign up in less than a minute and compare rates from some of the top insurers in the industry. Jerry users save an average $879 per year on car insurance.
Eric Schad
Answered on Oct 21, 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.

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