What's the best interest rate I can get on a car loan if I have bad credit?

I want to get a car loan, but my credit score is only about 600. What's the best interest rate I can expect?

Answer
A 600 credit score puts you in the subprime range of lending. This means that you’ll find a wide variance of car loan rates.
However, credit score is just one factor in the interest rate for a car loan. Other factors lenders use include:
  • Your income
  • Overall credit history
  • Debt-to-income ratio
New car loan rates for a 600 credit score typically range from 7.14% to 11.33% for a new car and 11.41% to 17.78% for a used car. With such high rates, you may want to hold off on a car loan and build your credit or work with a lender you trust, such as your current bank or credit union.
If you decide you still need a vehicle, shop around to get the best rate. Otherwise, you may find that you’re upside down on the loan for a majority of the term.
Remember that your car loan isn’t your only expense. Budgeting for gas, maintenance, and car insurance is also important. To get the best rates on car insurance, use the number-one-rated car insurance app, Jerry. Jerry compares rates from more than 50 top companies and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!
Eric Schad
Answered on Nov 24, 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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