What does a 575 credit score auto loan look like? You will have trouble qualifying a car loan with a 575 credit score. You can expect to pay a high-interest rate.
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).
Related: Whats The Minimum CR for An RV Loan?
How good is a credit score of 575? Or Is It Bad?
Having a 575 credit score you are amongst 16% of American consumers in the Very Poor FICO Score range.
It's four levels and 230 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
*Your score is 10 points away from the next level.
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 asses risks based on your credit report.
A 570 score lets creditors know if there are any red flags they should take into account before letting you borrow money.
For example: “The average credit card debt for consumer with FICO® Scores of 575 is $4,674.”- Experian
If you fall into this group, that is would be a red flag.
What Are The Best 575 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 best of industry averages.
NEW CAR LOAN
uSED cAR lOAN
450 or Lower
750 or Higher
What are Used car loan rates 575 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.
How to Get A Better FICO Score For A Lower Auto Interest Rate
We wrote on qualifying for a 575 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.
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
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 575, the average utilization rate is 89.9%.
- Credit Payment History
- New Credit
- Credit Utilization Ratio
- Old Credit
- Credit Mixture
Get Consultation From These Credit Repair Companies
Good Luck Moving Forward
Moving forward, the name of the game is “take action”.
A 575 credit score auto loan is doable.
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 575 credit score, take advantage of a free consultation from credit repair services.