Can I Get a Car Loan with a 608 Credit Score?

Getting a car loan when you have less than stellar credit can feel daunting. You may worry about getting denied or only qualifying for a loan with outrageous interest rates. But having a credit score of 608 doesn’t necessarily mean you can’t finance a car purchase. While lenders prefer scores of 620 or higher, you still have options to get approved.

What Credit Score Do Lenders Want for Auto Loans?

Auto lenders generally prefer borrowers with credit scores of 620 or higher. The higher your score, the lower your interest rate will likely be. Here’s a breakdown of typical required scores:

• 720+: Excellent credit. Qualifies for the best rates.
• 690-719: Good credit. Still qualifies for competitive rates.
• 620-689: Fair credit. May pay slightly higher rates but can still get approved.
• 580-619: Poor credit. Will pay higher interest rates and may need a down payment.
• 579 or less: Bad credit. Loan approval will be challenging and rates will be high.

So while a credit score of 608 isn’t ideal for an auto loan, it falls within the fair credit range You can likely get approved but should expect to pay higher interest rates

What Interest Rate Can I Get with a 608 Credit Score?

Your interest rate on a car loan depends on your credit score along with other factors like your income, loan amount, and loan term. Here are the average used car loan rates by credit score range:

• Excellent credit (781-850): 5.07%
• Good credit (671-780): 7.21%
• Fair credit (601-670): 11.14%
• Poor credit (501-600): 18.58%
• Bad credit (300-500): 20.96%

With a 608 credit score, you would likely pay somewhere around 10-12% interest on a used car loan That’s significantly higher than what borrowers with good credit can get

For example, on a $15,000 5-year loan:

• At 7% interest, your monthly payment would be $303 with $2,317 in total interest paid.
• At 12% interest, your monthly payment jumps to $341 with $4,092 in interest.

As you can see, the higher rate really increases your total costs. But 12% is still manageable, so approval is possible if you have decent income and limited debt.

Tips for Getting a Car Loan with a 608 Credit Score

Getting approved for a car loan with fair credit takes some extra effort. Here are some tips:

• Shop around: Compare rates from multiple lenders to find the best deal. Local banks and credit unions may offer more competitive rates than large banks.

• Put down a larger down payment: A 20-30% down payment shows lenders you’re committed to repaying the loan.

• Consider a co-signer: Adding a co-signer with good credit can help you qualify and get a lower rate. Make sure they understand the responsibility they’re taking on.

• Look at shorter loan terms: Opting for a 3-year loan instead of 5- or 6-years reduces the lender’s risk, which may help your approval chances.

• Clean up your credit report: Correct any errors on your credit report and pay down balances to help boost your score before applying.

• Improve your credit: If you can wait 6-12 months, paying bills on time and limiting credit applications can improve your score and open up better loan options.

The Bottom Line

A credit score of 608 makes getting a car loan more challenging but not necessarily impossible. While you’ll pay higher interest rates, you can likely still get approved, especially if you put down a sizeable down payment, have sufficient income, and shop around for the best lender. Improving your credit score before applying will open up better loan offers. But even with fair credit, a car purchase can be feasible if you take the right steps.

What Does a 608 Credit Score Get You?