Is a credit score of 540 bad and can u get a car loan with it?

Question

IS A CREDIT SCORE OF 540 BAD AND CAN U GET A CAR LOAN WITH IT

Answer 1

Yes, that is below average but I think you can get a loan no matter what your credit score is - the catch is that the lower your credit score the higher the interest rate you pay. With 540 you'll be paying really really high interest.

Answer 2

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Answer 3

A credit score of 540 is not good. I've seen worse, but it's unlikely you can get a regular car loan from a bank or credit union. You might qualify for a loan from a high risk lender. There are a few around and the car dealers use them. The interest you pay from a high risk lender will be considerably more than it would be if you could get it from a regular lender. Perhaps as much as 18% on a car loan. Your best bet is to work on bringing up your credit score and then get a car loan.

Answer 4

540 is a bad score. I am not much higher than that, so don't feel bad. You can get a car loan. You will have a high interest rate and will not always be able to get what you want, but you can get a car. You can get a used or new one. There will be limits on what you can get, or I should say the amount you will be financed for. Your going to have a payment for something that is $15,000 that a person with good credit has the same the payment and they are driving a brand new BMW. It sucks, but that is what happens when you have not managed properly. I know from experience. You can for sure get a car though. Just be wise and do your research before you buy, people with bad credit get the worst deals. Rightfully so. People are lending their money to you and you are a risk. You'll get your car though. Good luck!

Answer 5

First off, how old are you? Your credit score is determined by your ability to pay your bills. You need to pay off any loans you have out standing. Don't be late or delinquent on loans. Now apply for a credit card , buy a few items when you get it. Return those items because you are in no position to pay for them. Do this a couple of times. Instead of paying cash use the credit card. MAKE SURE YOU PAY THEM BACK. You can only get credit if you are trust worthy. After a few months you might have increased your score. There are a lot of dealers that take on a high credit risk but you need a FULL time job.

Answer 6

man these guys have no clue. 540 is a low score. anyting below 620 is considered subprime, anything below 580 is considered secondary. the lower the score the harder to get financed. very often you will be required by the lender to put money down, and many lenders wont even consider you w/ that low of a score. i have several banks that 540 is their cutoff to even consider it. others are 520. but whether or not you can get a car is a different story. job time, income amount, down payments and your total credit history all play a role in that question. i have one lender that will finance just about anyone but you have to have a substantial down payment, as they charge the dealer a large fee to even finance it, which the dealer has to figure into their deal and what profit (or lack of) they will be making. score alone does not set whether or not you can get financed. ive gotten 380's financed, and ive had 620's that i couldnt get financed.

Answer 7

Depends on the company that you are apllying at, but I think that a 540 shows that you missed a couple payments somewhere along the road. This being because I heard 50 points are deducted every time you miss a payment on something.

I'd say you could get it though, if you have some kind of collateral (house, computer, motorcycle, etc)

Answer 8

Bad credit is one of the worst problems to have... however there exists a solution.

I will hereby talk from my personal experience.

I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :

http://umgarticles.atspace.com/debt-consolidation.htm

if it helps kindly remember me in your voting!.. cheers!

Answer 9

yes ,you can get a car loan with that score,that's about what a lot of peoples are to start out with,but you might have to pay a higher interest rate,but you shouldn't have a problem getting a loan with that one,good luck,i hope this help,s.

Answer 10

You can get a car loan but your intrest rate may be higher than it would be if the score was higher. Lending institutions charge a higher intrest the lower your credit score is.