How To Get a Car Loan With A 600 Credit Score

This article will share special tips on getting a car loan with a 600 credit score. If you want a car and are worried about having a low credit score, you feel you won’t get approved for a car loan from a traditional lender.

Although having poor credit can make getting a car loan challenging, that doesn’t imply that it is impossible. You will discover that borrowing costs are far cheaper with a traditional lender, regardless of the credit score.

7 Tips to get a Car Loan with a 600 Credit Score

Prepare on different fronts before applying for an auto loan with bad credit. Learn to pay special attention to the credit score and ensure that all terms are finalized before the purchase goes through. Below are tips on how to get a car loan with a 600 credit score.

1. Know your credit score

Before starting the shopping process, people should check their credit scores. According to the FICO, any score below 580 is considered a poor credit score.

The FICO score consists of a few categories, like how much a person owes, the length of their credit history, and their payment history. Not making their payments on time, consistently spending more than their available monthly credit, and having a short credit history can all negatively impact a person’s credit score.

2. Research 

Prepare and research thoroughly so you are not caught off guard when the time comes to negotiate. Before applying for a loan, know precisely the type of monthly loan payment you can afford and what APRs are common among car lenders. You will likely be offered some of the highest advertised rates with a bad credit score.

When buying a used car, it also helps to know the Kelley Blue Book value of the preferred car.

3. Save for a down payment.

If a person has a lower credit score, making a down payment on a car can increase their chances of securing and getting approved for a car loan.

Setting aside extra monthly cash for a down payment can also offset higher interest rates caused by a poor credit score and lower a person’s loan-to-value ratio, helping them qualify for better terms.

4. Shop around

Once you begin shopping, don’t pin yourself to just one lender. Different lenders can help you secure a loan, including: 

1. Banks and credit unions: If a person already has a relationship with a credit union or bank, start here. Some credit unions and banks offer discounted rates for their members.

2. Online lenders: Many online lenders offer a pre-qualification tool on their websites, which allows you to see what terms you might be eligible for before applying. It can save you a hard credit check if you don’t meet the requirements.

3. Car dealerships: You can finance your car through a dealership if you meet the financial and credit criteria. You will meet with a finance department representative to send your information to many lenders. Some dealerships may also offer programs for people with a bad credit history.

4. Buy-here, pay-here dealerships: Buy-here, pay-here dealerships can be helpful if people don’t get approved by a bank or lender for a loan, but these various platforms should be approached with caution. While these dealerships may more likely support someone with bad credit for a loan, the interest rates can be much higher.

5. Prequalify with lenders

Pre-qualification allows you to see your eligibility for a loan before applying. With pre-qualification, people save time in applications and avoid unnecessary hard credit checks.

Multiple hard credit checks harm credit score, and if a person already has less-than-desirable credit, it’s worth prequalifying with a few lenders. With a preapproved car loan, people also have leverage when walking into the dealership and can negotiate like a cash buyer.

6. Be sure the terms are final.

If you finance through a dealer, ensure the terms are final before signing. If you don’t finalize the terms, you may face higher monthly payments.

It is known as yo-yo financing: Dealers tell car buyers the financing is not entirely well after the customer finalizes the purchase. People must accept a higher interest rate, or they have to return the car.

7.Avoid subprime lenders

Subprime lenders might seem like a sure bet to people wondering how to get a car loan with bad credit. These subprime lenders usually cater to customers with poor credit scores and can make the car buying process seem easy and stress-free. But subprime auto loans can come with high-interest rates and can mean paying thousands of dollars extra in interest over the life of the loan. 

The minimum credit score for a car loan

There is no defined credit score needed to get an auto loan. If a person has a credit score above 660, they will likely qualify for an auto loan at a rate below 10% APR. If a person has bad credit or no credit, they could still be eligible for a car loan, but they should expect to pay more.

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The kind of car you can get with a 600-credit score

 The table below shows you the category you fall in, the interest rate, and the type of cars you want.

 Average APR, new car

 Average APR used car

Superprime: 781-850.



Prime: 661-780.



Nonprime: 601-660.



Subprime: 501-600.



Deep subprime: 300-500.



The interest rate on a car loan with a 600 credit score 

The average interest rate for a brand-new car loan with a credit score of 600 is 6.70%. Some dealerships will advertise plenty of incentives for buying a new car, such as cash rebates, low-interest rates, or special lease offers. A new car generally has much better interest rates than a used vehicle.

With a credit score of 600, people may not be eligible for many of those offers. They may be reserved for buyers in the “prime” or “super-prime” ranges.

Where to buy a car with a 609 credit score

 If you are looking for a place to buy a car with a 609-credit score, then have you covered. They offer the rates you can ever get for a bad credit score, which has also been rated 5 stars by previous clients.



How much of a loan can you get with a credit score of 600?

If you have a credit score between 580 and 669, you’ll generally be considered a “subprime” borrower — meaning lenders might see you as a more risky investment. Because of this, you’ll likely pay a higher interest rate than borrowers with good to excellent credit.

Can I buy a car with a 609 credit score?

A 609 credit score for an auto loan isn’t optimal, but it won’t stop you from an auto loan. This credit score categorizes you in the nonprime range of credit, making your interest rates higher than someone with a good credit score. The general cutoff between prime loans and nonprime is a 660 credit score.

What interest rate should I expect with a 600 credit score?

You should expect these interest rates when shopping for lenders: Poor Credit (300-629): ~27 – 32% Interest Rate. Fair Credit (630-689): ~18 – 22% Interest Rate. Good credit (690-719): ~14 – 18% Interest Rate.

Which credit score do car dealerships use?

 The FICO credit scoring model is the most used by car lenders and car dealerships and is also the first-ever and oldest. It’s estimated that 90% of auto lenders use the current FICO Score 8 model when making lending decisions.

What credit score do I need to buy a $30 000 car?

A person’s credit score is a major factor in whether they will be approved for a car loan. Most lenders use specialized credit scores, such as a FICO Auto Score. People need at least prime credit, meaning a credit score of 661 and above, to get a loan at a reasonable interest rate.

How much of an auto loan do I qualify for?

Lenders don’t have a maximum amount for car loans since each loan is based on the buyer’s credit score and income. Let’s say that a person has an 800 credit score and makes $35,000 a year, and another has a credit score of 690 but makes $200,000 a year.

How do you know if you’ll get approved for a car loan?

Lenders’ main thing is your debt to income ratio (DTI), the percentage of your monthly gross income that goes toward paying debts. Lenders like to see a DTI ratio of 40% or less, which means if you bring in $5,000 of income each month, your debt payments should be no more than $2,000.

How much is a car payment of $15000?

You can estimate your monthly payment for various loan terms as 12 months: $1269.25. Twenty-four months: $643.99. Thirty-six months: $435.49.

What credit score is needed to buy a car without a cosigner?

Although a 650 credit score is good for any loan, first-time car loans may require a score of 680 or higher to waive any cosigner requirements.


Facts is a 600 credit score is a below-average credit score, but it’s also approaching the “good” range, although it is considered poor by every major credit scoring model.

Scores in this range are good enough to get some types of credit, but this score might not qualify you for the best interest rates, but this shouldn’t be a problem because myAutoloan has the best rate for a 600 credit score.

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