Getting a car loan can be both useful and necessary if you have a low credit score. Vehicles are an important transportation need in many areas, and getting a car loan can sometimes help improve a person’s credit score if a regular payment history is shared with one of the credit evaluation agencies. But sometimes it can be challenging to get financing for a new or used car when your credit score isn’t that good. Can you get a car loan with a credit score of 600 or below? That depends on where you go.
What is subprime credit?
Generally a person with a score or 600 or below is classified as having subprime credit. If you have a credit score of 600 or below, you absolutely can still get a car loan, but you will likely need to deal with higher financing rates, or need to make a larger down payment. According to some statistics we’ve read, up to one fifth (1/5) of car loans go to people with a credit score of 600 or below.
What’s the lowest my credit can be to get a car?
There is no credit score so low that you absolutely cannot get financing for a vehicle. There may be other factors that can affect your eligibility, but the number on your credit score does not define your chances all by itself. If you can get your credit above 500, you are likely to have an easier time getting a car loan, and better financing rates, but even lower credit scores may not hurt your chances if you can show that your credit score does not reflect your reliability as a vehicle buyer. Check out our other blog posts about auto finance to learn more on this topic.
Bad credit financing in Austin TX
Are you looking for a car loan in the Austin TX area? Third Coast Auto Group is a collection of buy-here-pay-here dealerships that offers used cars and financing opportunities to people will all credit score levels. Explore our inventory of used vehicles or apply for financing today to get started.