Skip to Content
Credit Score Auto Loan Image

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.

Learn more

john-schnobrich-81kSm-UugZY-unsplash.jpg#asset:18578

default icon for Solution Finder Intro
What can we help you with?
default icon for Checking For Mature Members
What are you borrowing for?
default icon for Checking For Mature Members
Vehicle Options
default icon for Checking For Mature Members
Home Options
default icon for Carrolls
What are you saving for?
default icon for Carrolls
How old are your kids?
default icon for Cord
Which of these banking options are you interested in?
default icon for Cord
How old are you (or your child)?
default icon for Cord
How old are you?
default icon for Cord
What kind of account are you looking for?
search popup background

What are you looking for?

Common Links

Frequently Asked Questions

  • How am I eligible for membership at Listerhill if I don't live near a branch?

    You can become eligible for membership at Listerhill anywhere in Alabama if you join the Alabama Consumer Council or the Athens State Alumni Association. In Tennessee, you can also become eligible for membership if you join the Athens State Alumni Association. This membership is initiated at no cost to you and doesn't require any setup on your part outside of the normal application process to become a member of Listerhill.

  • How can I access my Listerhill accounts without a nearby branch?

    If you live in Alabama or in Tennessee but don't have a Listerhill branch location nearby, there are still plenty of ways to access your accounts. You can use our online banking, mobile banking app, and cards app to access your accounts from your devices. You can also take advantage of our CO-OP Shared Branches for easy access to your money wherever you are. If you need to get in touch, we're always one call away.

  • Can I open a Listerhill account online?

    You can open your Listerhill account, loan, or credit card from the comfort of your home with our easy online application. Or, if you want to apply for a mortgage, you can learn more about our offerings and start your application here.

  • Am I eligible for membership at Listerhill?

    If you live, work, attend school, or own property anywhere in Alabama or Tennessee, you're in luck! You're eligible to become a Listerhill member.

  • The Great Giveback Official Rules

    1. Eligibility: No purchase or obligation necessary to participate and win. All participants must be 19 years of age or older at time of contest participation. Employees of Listerhill Credit Union are not eligible to register for the contest.

    2. How To Enter the Contest: All Listerhill members who have consumer loans in good standing, (subject to limitations below) are automatically entered. Anyone who takes out a new loan with Listerhill Credit Union, or refinances a loan from another lender with Listerhill Credit Union (subject to limitations below) will automatically be entered to win. Limit of one entry per loan.

    NO PURCHASE NECESSARY: To enter the contest without a loan, send a self-addressed, stamped envelope to: Listerhill Credit Union, P.O. Box 566, Sheffield, AL 35660, Attn: Great Giveback Contest Entry. Limit one entry per person. Written entries must be received no later than July 3, 2021.

    Listerhill Credit Union will not be responsible for incomplete, lost, late, misdirected or illegible entries or for failure to receive entries. All entries become property of Listerhill Credit Union and none will be returned. Any questions regarding the number of entries submitted shall be determined by Listerhill Credit Union in its sole discretion, and Listerhill Credit Union reserves the right to disqualify any entries by persons determined to be tampering with, violating, or abusing any aspect of the contest.

    3. Contest Entry Requirements: In the event the Credit Union, in its sole discretion, determines that any Entry contains content that does not comply with these Official Rules or does not otherwise comply with regulatory guidelines, Credit Union reserves the right to disqualify the entry.

    4. Determining the Winner: A Credit Union employee will select at random four (4) $500 winners (one per day July 12-15) and one Grand Prize Winner from all entries received on July 16, 2021. You do not have to be present to win.

    5. Prizes: $500 Cash Prize: the Credit Union will award four (4) members with $500 cash each. Grand Prize: The Credit Union will pay up to $25,000 toward your loan with Listerhill Credit Union, or combination of loans. No loan payments will be made to loans with any other lender. No cash equivalent provided, and the total prize amount may be less depending on the outstanding amount of loan balance(s) with Listerhill Credit Union. In no event will the prize awarded exceed the total amount of the winner’s outstanding balance of qualifying loans with Listerhill Credit Union. Federal, state and local taxes are the sole responsibility of the winner. IRS regulations require the Credit Union file a 1099 on behalf of the winner.

    A Credit Union employee will call the prize winners and the prize winners will be called up to five times during regular business hours at number provided on entry form and will leave no messages. Failure to reach winner during these calls may result in disqualification of winner, forfeiture of his or her interest in all prizes, and selection of a substitute winner drawn from the drum. Winner will be required to schedule a time, at least 48 hours in advance, to visit Listerhill Credit Union, located at 4790 2nd Street, Muscle Shoals AL, 35661 in person, during regular business hours within seven (7) days of being notified to claim prizes by providing proof of eligibility for prize won and completing and signing an affidavit of eligibility and a liability and publicity release. Failure of any Winner to timely contact the Credit Union, visit the above Credit Union office in person and sign and return any required affidavit and release, or to claim a prize or comply with any term or condition of these Official Rules, will result in drawing Winner's disqualification and the forfeiture of his or her interest in the prize. Winners may waive their right to receive prizes. Prizes are non-assignable and nontransferable. No substitutions allowed by winner.

    6. To be eligible to win, all loans must be in good standing (not more than 30 days past due at the time of drawing. Eligible loans are limited to auto loans (no indirect dealer loans), personal loans (no loans secured by real property, such as mortgages, 2nd mortgages, and Home Equity Lines of Credit) and recreation loans made to consumer borrowers (not business or commercial loans).

    6. Participation. By participating, entrants agree to be bound by these Official Rules and the decisions of the Contest. Except where prohibited, acceptance of any prize constitutes winner's consent to the publication of his or her name, biographical information and likeness in any media for any commercial or promotional purpose, without limitation the Internet, or further compensation. Prizes not won and claimed by eligible winners in accordance with these Official Rules will not be awarded and will remain the property of the Credit Union.