Will a 602 Credit Score Get Me an Auto Loan?
Q: I’d like to try for an auto loan in the next few days, however I only have a credit score of 602. Will that be sufficient to obtain a car loan, or will it be rejected every place?
A: It’s entirely possible to successfully obtain an auto loan with a credit score of 602. Look carefully at this loan data which comes directly from Experian:
In actual fact, Experian also claimed that vehicle loans for borrowers having scores under 602 represented twenty percent of 2019 auto loans!
With a credit score of around 602, you will definitely have the best expectation of being approved for vehicle finance if you try for vehicle loans online. Taking this route means it’s easy to do a comparison of the prices from a larger array of providers and will also be working together with companies who are more flexible in relation to accepting applicants with low credit. If you’re not certain how to go about this, take a good look at our useful suggestions list.
The same response holds good for auto loans for those having a credit score of 603, 604, 605 and 606.
Despite the fact that you’re able to successfully put in a request for an auto loan or a personal loan with a dismal credit standing, the negative aspect is that interest rates are likely to be high. You may be able to qualify for a more reasonable interest rate if you pay a bigger deposit on the vehicle in question. You can also attempt to raise your current FICO score.
Greatly improve your credit score and interest rate
Below are some strategies for perhaps maximizing your credit score before you apply for an auto / car loan:
- Pay off as many debts and bills as you can.
- Request your free credit reports, check them for flaws and challenge any that you discover.
- Credit cards, cut down your credit liability to less than 30%.
- Join Experian Boost to get your telephone and utility bill payments counted towards your credit rating.
- Various creditors are prepared to pardon one-time mistakes and erase them from your credit history. Establish if this can be applied to your situation.
