Getting a car loan with a 640 credit score is highly possible, the question is can you handle the average APR for a car loan at a 640 credit score?

Let evaluate where you are so we make sure you weigh all your options from the start. According to Experian, 17% of all consumers have FICO Scores in the Fair range

Being between a 580 and 669 your score is deemed as Fair. You are 60 points away from being in the Good realm.

A 640 credit score isn’t good or bad, it’s fair.

So, if you aren’t happy with the interest rates quoted for your current situation, there is room for improvement.

The good news is you are definitely eligible for a new, used or refinance automobile loan.

What Are The Best 640 credit score car loan interest rates?

“Beauty is in the eye of the beholder”... I hope we didn’t lose you there.

What we are trying to say is, it’s all relative to you and your circumstance, credit score, time restraints, and budget 

In a general sense, the absolute best car loan interest rates, like the 1 to 2 percent APR’s, will go to people in the 750 to 800 range. Not even people with a 700 FICO score get those advertised percentages.

So, you can curb your expectations right there. 


We can realistically guesstimate where your interest rate will land - you can not get an accurate estimate without getting an actual quote. 

Also, know that lenders give borrowers with less than excellent credit higher rates.

Why? Because statistics show that customers with fair credit are higher risk; It’s more probable that they will default on their loans. 

“The credit reports of 42% of Americans with a FICO® Score of 640 include late payments of 30 days past due.” - Experian

Now That we got those expectations, facts and FIY’s out the way. Here are some average automobile loan rates:

Credit Score




450 or Lower















750 or Higher




What are Used car loan rates 640 credit score

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

You will be able to get financed for a used car with a fair credit score. 

No matter the rate, you may spend less over the course of the loan because used cars tend to cost less than a new car. 

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

We wrote on getting a 640 credit score car loan, but now we are going to touch on how you can boost your score at least 100 points for a lower interest rate.

First things first, 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.

Want Help Removing Items Off Your Credit Report?

Then, 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 (that may raise your FICO score by 50 points ).

Related: how to increase your credit score 200 points

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 640 credit score, take advantage of a free consultation from credit repair services.   

You can’t go wrong with free information and taking steps closer to getting your new or used ride.

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