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Can I get a car loan with a 609 credit score?
I’m in the market for a new or used car. I checked my credit score and it’s kind of low. Is a 609 credit score good enough to get a car loan?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
A 609 credit score for a
car loan
isn’t optimal, but it won’t disqualify you from a car loan. This credit score puts you in the nonprime range of credit, which will simply make your interest rates higher than someone with a better credit score.The general cutoff between nonprime and prime loans is a 660 credit score. Therefore, you may want to pay off some debt and build your credit until you reach this level.
For example, a 609 credit score qualifies you for an average new car loan
APR
of 6.32% and an average used car APR of 9.77%. If you have a 660 credit score, these rates decrease to 3.64% and 5.35%, so you can see the huge difference it makes.You should also look at your current debt-to-income (DTI) ratio. This is how much debt you have to pay each month divided by your monthly pre-tax income. Ideally, shoot for a DTI of 43% to qualify for a car loan. You should also apply for preapproval at a few lenders to see what your interest rate and loan amount might be.
To improve your odds of success, you may also want to ask a trusted family member with good credit to cosign for your loan.
Once you have a loan offer in hand and you’re ready to purchase a car, make sure to shop around for car insurance, just as you would with a car loan. The best place to start is with the
Jerry
app.As a licensed broker, Jerry helps you find and compare quotes from over 50 top providers in minutes. When you find a better rate, Jerry can help you buy your new coverage and even cancel your old policy!
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- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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