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Is a 563 credit score good for car loans?
I know that 563 isn’t the best credit score, but I don’t know how bad it is in terms of loans. WIll a 563 credit score still qualify me for an okay car loan?
Joshua Levy · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
A 563
credit score
is considered subprime, so it’s not the best for car loans. With a low credit score like 563, you’re likely to find high-interest rates and inflexible loan terms. But try not to worry. You can always use the following tips to raise your credit before you apply for a loan:
- Review your credit: Use a website likeCredit Karmato review your current score and check your credit history. If you find any inaccuracies, report them as soon as possible. Little mistakes on your credit report could be damaging in the long run.
- Consistently pay off debts: Continue or start making consistent payments to any existing lenders. Showing you can be responsible about paying back loans goes a long way in building your credit. Remember, your credit card also counts as a debt. Paying it off in full each month is a great way to start repairing your score.
- Use less credit: Keeping your credit usage under 30% shows that you’re responsible with your money and cautious about accruing debt. While spending under 10% is ideal for repairing your credit score, it’s easiest to start by reaching the 30-mark and work your way down from there.
If you’re still planning to apply for a loan, make sure to compare offers from at least three lenders before you settle. Your first offer will rarely be your best, and comparing lenders can help you get a feel of your options. If you’re worried about your monthly payments, offset the cost by saving on car insurance with
Jerry
.A licensed broker, the Jerry app helps users find and compare quotes from over 50 top providers like Allstate and Nationwide for free. When you find a plan you like, Jerry can help you switch policies and even help cancel your old one. Users save an average of $887 a year on car insurance with Jerry—and it only takes a minute to sign up.
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- Gregory R.
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