Getting approved for a car loan with a credit score under 600 might seem impossible — but it’s not. In fact, millions of Americans with poor or fair credit finance cars every year. The key is knowing how to position yourself, which lenders to target, and what documents to have ready.
In this guide, we’ll walk you through every step to increase your odds, avoid high-interest traps, and find the best deal possible.
❗ Who Should Avoid This Type of Loan?
Before we dive in, let’s be real — subprime car loans aren’t for everyone. You might want to hold off or explore other options if:
- You can wait and work on boosting your credit score
- You have access to a cosigner with good credit
- Your income is inconsistent or unverifiable
- You’re already struggling with other high-interest debt
But if you need a car now and your score is under 600, here’s how to make it work smartly.
🧭 Step-by-Step: How to Get Approved with Credit Under 600
Step 1: Know Your Exact Score and What’s Hurting It
Get a free copy of your credit report and understand why your score is low. Late payments? High utilization? Collections?
Step 2: Prequalify Online Without a Hard Pull
Many lenders offer soft-pull prequalification tools that won’t impact your score. Use them to see potential loan terms upfront.
Step 3: Set a Realistic Budget
Use the 20/4/10 rule: 20% down, 4-year max term, and monthly payments no more than 10% of your take-home pay.
Step 4: Gather Documents Before Applying
Lenders want to see proof of stability. Have your recent pay stubs, utility bills, driver’s license, and possibly references ready.
Step 5: Compare Offers from Subprime Lenders, Not Just Dealerships
Don’t settle for dealer financing alone. Compare online lenders, credit unions, and platforms that specialize in bad credit.
Step 6: Consider a Modest, Used Vehicle
Loan approval is easier with smaller amounts. A reliable used car under $20K can improve your chances — and reduce total interest paid.
📄 What Documents Do You Need?
Here’s what you’ll likely need to get approved:
- Valid U.S. driver’s license
- Proof of income (2 recent pay stubs or tax return)
- Proof of residence (utility bill or lease)
- Proof of insurance
- Personal references (some lenders require 3–5)
- Down payment (optional but helpful)
Pro tip: Uploading everything digitally speeds up approval by 2–3 days.
💡 Insider Tips to Save Money on Your Loan
- Get a co-buyer if possible – Even another low-credit borrower can help split risk.
- Make a small down payment – Even $500–$1,000 can lower your APR significantly.
- Shop around within a 14-day window – Multiple credit pulls won’t hurt if done close together.
- Negotiate the APR, not just the car price – Many buyers don’t realize the interest rate is negotiable.
- Avoid add-ons and extras – GAP insurance, warranties, etc. can inflate the loan total.
🔍 Lender Comparison Table (Best for Credit Scores Under 600)
| Lender/Platform | Min. Score | Prequalify? | Max Term | APR Range | Best For |
|---|---|---|---|---|---|
| myAutoloan | 575 | Yes | 72 mo | 6.9%–25% | Multiple loan offers |
| Auto Credit Express | 500 | Yes | 72 mo | Varies | Bankruptcy or repos |
| Carvana | 550 | Yes | 72 mo | 8%–22% | Online car + financing |
| Capital One Auto | 500 | Yes | 72 mo | 7%–23% | Name-brand financing |
| Local Credit Union | 580 | Sometimes | 60 mo | 6%–16% | Lower APR if eligible |
❓ Frequently Asked Questions
Can I get approved with a 520 credit score?
Yes, but you’ll likely need proof of stable income and a higher down payment. Lenders like Auto Credit Express specialize in this range.
Do I need a cosigner for a loan under 600 credit?
Not always. Many online lenders approve solo applicants with strong income or steady employment history.
Will checking my rate hurt my score?
Not if you use a soft-pull prequalification tool. Always look for “no credit impact” when browsing offers.
What’s the average interest rate for bad credit car loans?
It ranges from 11% to 22%, depending on lender, down payment, and income. Shop around to get the best deal.
Can I refinance later once my credit improves?
Absolutely. Many borrowers refinance after 6–12 months of on-time payments, cutting their rate by 3–6%.
🏁 Final Verdict: You Can Get a Car Loan With Bad Credit
While a credit score under 600 will limit your options, it doesn’t mean you’re stuck. With the right documents, lenders, and prep work, you can drive off without overpaying or needing a cosigner.
🚀 Explore your auto loan options now — prequalify in 60 seconds with no credit hit.
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