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Getting an Auto Loan with a 600 Credit Score

Need a new vehicle but don't have a great credit score or cash? Keep reading to see how an auto loan can be put into your reach.

Credit Score 600? Here’s How To Get An Auto Loan

You have a 600 credit score, but you shouldn't be penalized because of this one number. Whatever the reason your score has fallen to 600, you still need a reliable and safe vehicle to get from point A to point B. Unless you have the cash, that means you need an auto loan.

It's essential to be knowledgeable about how your auto loan process will be different than someone with a higher score. You might not have the same options, but you can still get an auto loan with a 600 credit score.

Lender Considerations When Applying for an Auto Loan

When you get an auto loan, there are two significant considerations. One is your income, which lets lenders know how much you can afford to pay monthly, and the next is your credit score, which indicates the likelihood that you'll fulfill your loan obligations.

Having a 600 credit score alerts lenders that you struggle to repay money that you borrow so they are more cautious when loaning you money.

One of the ways this will impact your auto loan is the interest rate you will qualify for. Interest rates can range from 3.5% for those with excellent credit to over 15% for those with lower credit scores.

The Interest Rate Difference

Your interest rate is the portion of the loan charged to you that’s also known as the annual percentage rate. Interest rates vary widely, and your credit score is the primary indicator of the type of rate you’ll get.

Here's an example showcasing how your loan is affected by a low-interest rate and a high-interest rate.

Low-Interest Rate Loan

Car Price: $25,000

Interest Rate: 4.69%

Loan Term: 60 months

Monthly Payment: $468

Total Car Cost: $28,094

High-Interest Rate Loan

Car Price: $25,000

Interest Rate: 16.78%

Loan Term: 60 months

Monthly Payment: $618

Total Car Cost: $37,102

When you compare these two loans, the only difference in the terms is the interest rate. The low-interest loan rate is 4.69%, and the high-interest loan rate is 16.78%.

With the higher interest rate, you will pay $150 more per month and $9,008 more over the length of your 60-month loan. While you can't do much about these more expensive rates until you improve your credit, it's crucial that you understand how your interest rate is impacting your auto loan financing.

Documentation Requirements

Whether your credit score is 600 or 800, you will need to provide your lender with some documentation proving your ability to repay your loan.

This includes:

  • Proof of employment via a pay stub - you generally need to make at least $1,500 per month to qualify for an auto loan
  • Tax returns if you are self-employed
  • Driver’s license
  • Proof of residency in the form of a utility bill

Make A Down Payment

While there are some zero down payment loan options for those with excellent credit, you will likely need to put down some money when you purchase your car.

Your lender will be cautious of your ability to repay based on your credit score, so making a downpayment provides them with some money up front in case you don't follow through with making payments. Your down payment requirement can vary greatly.

Get A Co-Signer

If you have a friend, spouse, or loved one who agrees to co-sign your loan, it can increase your chances of qualifying for a loan and improve your terms. Your co-signer will be legally and financially responsible for your loan, so be sure to work out all of the details with them before they agree.

Credit Union Auto Loans For 600 Credit Score

A credit union is a not-for-profit financial institution that passes its savings on to you, its members. They are also smaller than most traditional banks, so they can evaluate your specific situation on an individual basis.

Credit unions are also known to have lower rates than banks, and now that you know the importance of getting the lowest interest rate possible, it's worth it to apply for an auto loan with a credit union.

At Listerhill Credit Union, we know how important it is to find a loan that fits your needs and your budget without being penalized for having a lower score. If you’re looking for an auto loan with a 600 credit score, let us help you. It's free to apply, and we have some $0 down payment offers, along with flexible payback options.

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Frequently Asked Questions

  • How does a cash back credit card work?

    Our cash back credit card gives you a flat rate of 2% back on all of your purchases. It acts as a rebate that you can redeem for cash as a statement credit or direct deposit in your account.

  • How do I receive an incoming wire transfer at Listerhill?

    All incoming wires must be received using Listerhill's routing number of 262277011. The member should use the routing number along with their member number and share ID suffix or their draft number when receiving a wire.

    Wire to:

    Listerhill Credit Union

    4790 E. 2nd Street

    Muscle Shoals, AL 35661

    1-256-383-9204

    ABA No.: 262277011

    For credit to the account of:

    Member's Name:

    Member's Address:

    Member's Account No.:

  • What does it cost to send or receive a wire transfer?

    Incoming Domestic Wire Charge: $20.00

    Outgoing Domestic Wire Charge: $20.00

    Incoming Foreign Wire Charge: $35.00

    We do not process outgoing foreign international wires. We can receive them only.

  • Can I conduct a wire transfer through Listerhill?

    Listerhill is capable of receiving incoming wire transfers and sending outgoing domestic wire transfers. All Branch Managers, Loan Officers, Senior Member Advocates, Member Advocates, and Tellers can provide our members with information needed to receive incoming wire transfers.

    Branch Managers, Member Advocates, and Senior Member Advocates can assist with processing outgoing domestic wires.

    We do not process outgoing foreign international wires. We can receive them only.

  • How do I qualify for membership at Listerhill?

    To qualify for membership with Listerhill, you must meet one of the following requirements:

    • If you live in the states of Alabama, Georgia, Mississippi, Florida, or Tennessee, you are eligible to become a member.
      • Depending on your individual eligibility requirements, we may require membership into an approved association at no cost to you.
    • You can also qualify for membership by being a family member of a current or potential Listerhill member.