There’s no minimum credit score required to get an auto loan, which means people with poor credit may just need to find the right lender or loan in order to get behind the wheel.

What is the average interest rate for someone with good credit?

Average Credit Card Interest Rate by Category

What is the lowest credit score you can get a car loan with?

Although it’s possible to get a loan with a low score, “anything under 500 is a flashing red light,” says Dave Cavano, who manages the car-buying service for Auto Club of Southern California. That means you won’t qualify for an attractive interest rate, but it doesn’t mean you can’t get a car.

What is a bad credit interest rate?

Average Interest Rates for Bad Credit The average interest rate for someone with average credit is about 5% to 6%. The interest rate for someone with bad credit varies from 6.5% all the way up to 12.9% or more on average.

Though it may seem impossible to get a loan with bad credit, the good news is—it’s not. While having a good score may help you get approved for an auto loan with favorable terms, there are still options available for people with poor credit.

Can a person with poor credit get a car loan?

While having a good score may help you get approved for an auto loan with favorable terms, there are still options available for people with poor credit. There’s no minimum credit score required to get an auto loan, which means people with poor credit may just need to find the right lender or loan in order to get behind the wheel.

Why are car loan interest rates higher if you have bad credit?

He was born and raised in Michigan and is a graduate of Michigan State University. The average interest rate for a car loan is higher if you have bad credit than if you have a good credit score. This is because lenders charge higher interest rates to borrowers with poor credit.

How does applying for a new auto loan affect your credit score?

How applying for a new auto loan will impact your credit score. When you visit a dealer and decide to purchase a car, fill out the loan paperwork and give the dealer permission to run a credit check, that generates a hard inquiry on your credit report. Hard inquiries will reduce your credit score anywhere from 5-10 points for about a year.

What should my credit score be to get a car loan?

Credit scores are one of the factors lenders consider when deciding whether to offer you a car loan. FICO ® Scores * , one of the most commonly used credit scoring models, range from 300 to 850. On that scale, a score of 669 or below is considered fair or poor.