551 Credit Score Auto Loan Interest Rates in 2022
Obtaining an auto loan might be easy for some, but more difficult for others. This is why it is important to consider which credit range you fall in and how it might affect how you qualify for a auto loan with 551 credit score. Once you know your credit rating, you can then decide what to do, where to go, and who to work with regarding the auto loan you’re in need of.
- Minimum credit score*: 550
- Term of loan: 24 to 84 months
- APR: Varies
- Must have a Social Security number
- Make $24,000+/year
- Have no open bankruptcies
People with 551 credit score generally can get approved for a car loan as long as they have steady income that they can prove or if they have a co-signer. With either of these two options, they’re able to go in and obtain the vehicle of their choice depending on how much they were approved for, given their income history.
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There are less lenders to work with in this credit range, which does not provide many options. Not only that, but the auto loan interest rates that are seen can be upwards towards the 16% or more mark for those that are purchasing an auto with this credit rating. If the person is using a co-signer then they may be able to reduce the interest rate a bit, but it depends on the credit worthiness of the co-signer that is signing for the vehicle.
You will need to have money down and show proof of your income to purchase a vehicle, but, even with a co-signer and 551 FICO credit score it might be possible if you work with the right lender or auto sales company that provides lending through their company and can provide you with the right deal.
Individuals with a 551 FICO credit score pay a normal 14.8% interest rate for a 60-month new auto loan beginning in August 2017, while individuals with low FICO scores (300-499) were charged 17.5% in interest over a similar term.
So, if a vehicle is going for $18,000, it will cost individuals with poor credit $426 a month for a sum of $25584 for more than five years at 14.8% interest. In the meantime, somebody with a lower credit score paying 17.5% interest rate without an upfront installment will spend $486 a month and wind up burning through $28084 for a similar auto. That is in excess of a $2500 distinction.