Will a 656 Credit Score Get Me an Auto Loan?
Q: I’m expecting to apply for an auto loan in the next few months, although my credit score stands at 656. Will I be able to get a car loan, or am I going to be rejected everywhere I try?
A: It really is entirely possible to apply successfully for an auto loan with a credit score of 656. Look carefully at this finance data which comes straight from Experian:
In fact, Experian highlighted that vehicle loans for people having credit scores under 656 accounted for twenty percent of all auto loans during 2019!
If you have a credit score close to 656, you are likely to a better prospect of approval for vehicle finance if you apply for vehicle loans online. Doing this means it is easy to do a comparison of the prices from a larger assortment of lenders and you’ll be using the services of lenders that are way more accommodating when it comes to accepting low credit score applicants. If you are not certain how to go about this, inspect our extensive list of suggestions.
The very same answer works perfectly for auto loans for those having credit score 657, 658, 659 and 660.
Although you are able to successfully try for an auto loan or a personal loan with a bad credit standing, the problem is that interest rates are generally much higher. You may be able to receive a slightly more competitive rate of interest if you put an advance payment down on the car in question. You can also have a shot at raising your current FICO score.
Greatly improve your interest rate and credit score
Listed here are some tips on perhaps maximizing your credit score when applying for an auto / car loan:
- Credit cards, lower the amount of your credit you are utilizing less than 30%.
- Join Experian Boost to have your telephone and utility payments counted towards your credit scores.
- Get current on as many debts and bills as you can.
- Request your free credit reports, check them for flaws and challenge any you come across.
- A few loan companies sometimes excuse one-time failures and eliminate them from your record. See if this can be applied to your situation.
