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Can You Get a Car Loan with a 640 Credit Score?

Yes, you can get a car loan with a 640 credit score. In fact, it may be easier than you expect–especially if you apply through us–but there will be a few provisos in regards to lenders, loan term, and interest rate.

Credit Score Ranges

Credit Score
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Your credit score can fall into a number of categories. Those categories are:

  • Excellent…score of 720 or higher
  • Good…between 680-719
  • Average…between 620-679
  • Poor…between 580-619
  • Bad…between 500-579

As you can see, a score of 640 will fall into the Average credit range, though sometimes a score under 680 is termed Subprime. Scores in that range will have a good chance of finding the financing they need for a wide variety of cars. There are a few lenders who will not approve a 640, though. Most large lenders look for a score of 680 or higher. So do most manufacturer’s lenders, i.e. Ally, Ford Motors, etc.

How to Make Your Application More Attractive

Even though the largest lenders may not approve your loan, many credit unions, local banks, or subprime lenders will. You may need to increase the attractiveness of your loan a little. By that I mean, you may need to do the following:

  • Offer a higher down payment
  • Be willing to pay a higher interest rate.

Typically, a credit score of 640 is going to require a down payment of 10 percent in cash or trade. While you may be able to squeak by on ten percent, why not put 15-20 percent down? That can be done with a combination of cash and trade and will lower your monthly payments and the total amount of interest you will pay over the life of your loan. It also demonstrates your commitment to repaying the loan, making your loan more attractive to lenders. Of course, if you want to receive a trade allowance on it, it’s best if you don’t still owe money on the vehicle you’re trading in.

As far as the interest rate and loan terms you may be facing…with an Average credit score, you will have to pay at least five percent over the prime interest rate. As of today, that would put you paying at least nine percent interest on a new car or twelve percent on a used car. Of course, this is only an estimate. Rates vary from lender to lender, person to person, and vehicle to vehicle. You will be asked to repay the loan more quickly than if you have better credit. At 640, you may only be offered a 30 month note on a sued car or 60 month for a new one.

Finding The Right Lender

This is where we come in. At Motive Auto Finance, we can help place you with a local finance specialist from a dealer or lender in your area, based on your credit, income, and other approval factors. They can guide you through the process, helping you compare rates, terms, and vehicles to find the combination that suits you best. Go here to apply online–it takes only three minutes.