Are you looking for a car loan but your credit score is 640? A FICO credit score of 640 falls in the average range and you can definitely get a car loan with that score but you will have to pay a higher interest rate (APR) than someone with let’s say a 680 credit score, keep in mind that lenders do not only look at the credit score when deciding who to give a car loan to. Your current income and debt to income ratio play a huge part of the decision.

A credit score of 640 is going to most likely require a down payment of 10 percent in cash or trade. If you can put down 15-20 percent down then that’s even better as it will definitely lower you interest rate and you will end up paying less over the course of your loan term. I know somebody who had a credit score of 530 and was able to get a new Honda Civic through financing with a % APR rate, while % interest is not great it is definitely very good for someone with a 530 credit score.

It is always better to go to the dealership already pre-approved for an auto loan, you can get an auto loan through a credit union,banks,etc

CarsDirect is also a great auto loan service since they work directly with dealerships in order to get you an auto loan. The company works with a network of dealers who specialize in car loan financing. The dealer has access to a number of financial institutions and will shop around to find you the best deal. Just fill out a simple application and you will be on your way to receiving a car loan.

Capitol One has a good auto loan service but be prepared to pay over 10% in interest with a 640 credit score

You do not need a cosigner auto loan if you have a low credit score. Continue reading →