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Get a Car Loan With a 650 Credit Score

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How You Can Get a Car Loan With a 650 Credit Score

If you have recently ordered a credit report and found out that your credit score is 650, you may be wondering if you can qualify for a car loan. Fortunately, you can qualify for an auto loan if you have steady income. If your credit score falls between 650 and 699, it is considered to be a fair credit score. This score is close to the national average score of 687. However, banks will consider it more risky to loan you money than it is to loan money to a person who has a credit score of 700 or higher. Your interest rate may therefore be higher.

To calculate the interest rate, the lender will consider various factors, including the down payment you will make, the length of your car loan, the amount you want to borrow and the lender. With a credit score of 650, you can find a car loan that offers 5 to 10 percent interest throughout the loan’s term. In order to avoid paying high interest, you should make a large down payment. Most lenders reward car buyers who put more money down by lowering the interest rate.

In order to get a car loan with a 650 credit score, the following are the steps you should take:

  1. Get several quotes from online lenders – In order to know if there are any lenders who can approve you for auto financing, you can visit the websites of various online loan aggregators, especially those who specialize in subprime loans. The online loan aggregators will send your application to 100 or more lenders in order to maximize your chances of getting financing. After completing this step, you will know whether any lender approved your loan application within a day. You should then note down the best rates you were offered.
  1. Communicate with local banks and credit unions – Even though an online lender has approved your application, you can still contact banks and credit unions in your city to compare the loan terms. If you have a long relationship with a bank or credit union in your area, it may be willing to offer you an auto loan. If you are not a member of a credit union, you can join one easily and find out if it can give you a car loan.
  1. Contact dealers – After getting a car loan approved, you will know the total amount you will finance and can therefore determine the type of vehicle to choose. You will mostly likely be limited to financing a pre-owned vehicle. Your choice of car will be determined by what is available in car dealerships and the loan amount you can qualify for. It is advisable to choose at least two different cars manufactured by different companies. The reason for this is that some automobile manufacturers offer subprime financing through their finance divisions. It is worth it to find out if you can get auto financing through them. Many dealers have business relationships with a few lenders who offer loans to people with a credit score of 650 or lower. If a dealer finds auto financing for you, make sure that you compare the rates carefully with those of other lenders.
  1. Think about your options – If your auto loan application is approved, but at a high interest rate, you should determine if it is worth it and if you can afford to pay the loan. If you cannot afford it, you can choose to work on improving your credit score and saving money that can cover the entire cost of a car or for making a large down payment.


You can take advantage of various financing options in order to get a car loan with a 650 credit score. The key is to compare the rates offered by online lenders, banks, credit unions and dealerships to find the most suitable loan. If you not able to get financing through these sources, you can consider getting a cosigner. This is a person who can pay off your auto loan if you are unable to make payments. You may choose a close relative or your parent to be your cosigner. Nevertheless, you should consider financing a car only if you have a stable job and you are sure that you will be able to make the payments on time.

Here are some websites where you can check to see if you qualify for a car loan:

Web2Carz – Auto Loans (US)