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Is a 500 credit score eligible for a car loan?
I’m hoping to buy a new car soon, but I’m going to need a little help with financing. Unfortunately, I have a pretty low credit score and I’m not sure if I’ll qualify for a loan. Is it possible to get a car loan if my credit score is 500?
Maxine Boyko · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Even with good credit, scoring a good
car loan
can be an exhausting process! With a not-so-good credit score, getting a car loan isn’t impossible, but it will be more difficult and may not be a great deal.A credit score of 500 is considered bad credit and carries an average new car loan interest rate of around 13% and a used car loan interest rate of about 20%. This means you’ll be shelling out more money over time to pay off your car.
What’s more, securing any car loan with a subprime credit score is extremely rare. Less than one percent of new car loans and under 5% of used car loans are granted to people with credit scores of 500 and under.
If you’re able to secure an auto loan, your next step is to start improving your credit score and to find a cheap
car insurance
rate to help offset a higher auto loan interest rate. Jerry
can help you find affordable insurance quotes from over 50 leading insurance providers in a matter of minutes. Once you find a rate that works for your budget, Jerry will help you sign up for your new policy. Jerry will also auto-shop for quotes when it comes time for policy renewals. View full answer
- 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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