You will have trouble qualifying a car loan with a 530 credit score. You can expect to pay high-interest rates.

It may in your best interest to have a cosigner or co-borrower to help carry the load (but only go this way if necessary).

Find the best auto loan and APR for your CS is one thing but deciding when and where to make that move is another.

We suggest you have a budget and timeframe ready so that you are ready when the right opportunity presents itself.

You may want to wait until you raise your score.

If you do have some time, you can improve your FICO Score with the intention of being quoted a lower interest rate (see how to do so below).

How good is a credit score of 530? Or Is It Bad?

Having a 530 credit score you are amongst 16% of American consumers in the Very Poor FICO Score range. 

It's four levels and 270 points away from what is deemed an Excellent or Exceptional score.  Here are the FICO Score levels:

  • Very Poor: 300-579 (you are here)
  • Fair: 580-669
  • Good or Prime: 670-739
  • Very Good: 740-700
  • Exceptional: 800-850

You are just at the top of the lowest level of the bunch. As you can imagine you won’t have many options.


Because the credit bureaus have these scores so that lenders can properly assess risks based on your credit report.

A 530 score lets creditors know if there are any red flags they should take into account before letting you borrow money. 

For example: “Among consumers with FICO® Scores of 530, 33% have credit histories that reflect having gone 30 or more days past due on payment within the last 10 years.”- Experian

If you fall into this group, that is would be a red flag (that goes for the cosigner or co-borrower too).

What Are The Cosigner Requirements?

In order for a cosigner to be trusted by a creditor, bank, or lender, the cosigner is normally required to have a good or excellent personal credit rating. 

Generally, creditors will require a potential cosigner to have a credit rating score of 700 or above

People with this range of credit score, and in the 800 credit score club, are commonly financially responsible and pay their bills on time. 

So, If you have bad credit, your cosigner and needs to have excellent credit.

  1. Good to Excellent personal credit 
  2. Proof of Income or Ability to Pay
  3. Stability In Employment and Residence 

Cosigner vs Co-Borrower

  • Auto loan cosigner – A cosigner is someone who guarantees to meet any missed payments and even repay the full loan amount should you fail to do so, which provides a safety net for both you and a potential lender.
  • Co-borrower – Adding a co-borrower (also known as a co-applicant) to your application means you’re applying for a joint auto loan. If approved, each borrower is responsible for repaying the loan and has the same rights to the use and ownership of the vehicle.

What Are The Best 530 credit score car loan interest rates?

Only people with Excellent credit will get the famously advertised 1 or 2 percent interest rates. 

You are in a poor position to qualify for a prime auto loan with a reasonable APR from traditional and online lenders. 

The best APR is still relative to your situation, it will not be the same for everyone but we can estimate based off industry averages.

See the Auto Loan Application for Multiple Quotes Quotes

Credit Score




450 or Lower















750 or Higher




What are Used car loan rates 530 credit score

There are few new car facts stated above that coincide with how you will be quoted for a new ride.   

You will be able to get financed for a used car with a Very Poor credit score, but you probably should reach out to a credit repair company for help. 

Even with an average APR, you will spend more over the course of the loan.

Related: 5 Myths Of Bankruptcy

How to Get A Better FICO Score For A Lower Auto Interest Rate

We wrote on qualifying for a 530 credit score car loan. Now let’s discuss how you can increase your credit score by 50 points for a lower interest rate

First of all, you have to look over your credit report for error, inaccuracies, and all incorrect information. From there you need to write dispute letters or you can find a credit repair service to do that for you.

Want Help Removing Items Off Your Credit Report?

A credit repair service can save you a bunch of time, offer other credit-related services and will help you track your process.

Then you want to add positive credit information. 

You can tap into a few things that can help you lower your credit to debt ratio (Credit Utilization Ratio). You will want to aim for below 30%, but preferably 10%:

  • Pay Down Debt and cut up cards (do not close the account)
  • Ask someone to be an authorized user on one or more of their credit lines 
  • Request a credit line increase from a credit card you have a good standing with
  • Send dispute letters to credit bureaus. Most people have a lot of inaccurate information on their reports
  • Boost your CS by 200 Points in 3 months

Get Consultation From These Credit Repair Companies 

FYI: Your auto loan can increase your overall credit score in the future by adding to the New Credit and Credit Mix portions of the FICO scoring factors.

According to Experian: Among consumers with FICO® credit scores of 530, the average utilization rate is 89.9%. 

Here are all the FICO Factors:
  1. Credit Payment History 
  2. New Credit
  3. Credit Utilization Ratio 
  4. Old Credit 
  5. Credit Mixture

Related: What The Minimum CS To Buy A Car?

Good Luck Moving Forward

Moving forward, the name of the game is “take action”. Apply for a car loan online, check out all your financing options, and make a move. 

If you decided to improve your score before applying for a car loan with a 530 credit score, take advantage of a free consultation from credit repair services.   

James Willaims

Hey There, James here. I am the co-founder and editor of this site. I have over 10 years experience in business and 5 in the credit repair world