Yes, you can finance a car with a 600 credit score, but expect higher APRs and better odds with preapproval and a steady down payment.
Buying wheels with a fair-range score takes strategy. Lenders still approve files near this band when the rest of the picture looks steady: verifiable income, manageable debts, and a car choice that fits the budget. This guide lays out what to expect, how to raise approval odds, and the moves that cut total cost even when your number sits around 600.
Financing A Car With A 600 Credit Score: What Lenders Weigh
A score near 600 sits on the border between subprime and near-prime in many datasets. That puts more weight on the other parts of your file. Underwriters look for timely payments, modest debt loads, stable income, and sensible vehicle picks.
Core Factors And Practical Targets
Use this table as a working checklist before you apply. These are common patterns across banks, credit unions, and indirect lenders.
| Factor | Typical Expectation | How To Strengthen |
|---|---|---|
| Recent Payments | No new late marks in last 12 months | Bring any past-due accounts current first |
| Debt Load | Room in the budget after bills | Pay down revolving balances to lower the ratio |
| Income Stability | Consistent pay for 6+ months | Gather pay stubs, W-2s, and bank statements |
| Down Payment | 10%–20% beats zero-down | Stack cash to trim risk and rate |
| Vehicle Choice | Reasonable price, lower mileage | Favor reliable trims with steady resale |
| Term Length | 60 months or less | Shorter term cuts total interest |
Why Rates Sit Higher Near 600
Risk drives pricing. Credit-bureau snapshots show near-prime borrowers tend to face double-digit APRs on used cars, while prime borrowers see single digits. That gap shows up in the monthly line and the total paid over the life of the loan.
What APR Range To Expect With A Fair-Range Score
Recent averages place used-car APRs in the low-to-mid teens for the 601–660 band and even higher for 501–600. If your number lands right around 600, your offer can fall on either side based on down payment size, loan term, and lender channel. That is why shopping across a bank, a credit union, and a dealer’s indirect network matters.
Preapproval anchors a fair rate. The CFPB auto loan guide encourages getting quotes before you visit a lot; it sets a clear target and can save real money. For current averages by score band, review Experian rate tables to see where your range tends to land.
How To Boost Approval Odds And Cut Total Cost
Stack A Real Down Payment
Cash up front lowers the amount financed, trims lender risk, and can nudge your offer into a better tier. Aiming for 10%–20% is a steady win. Trade-in equity counts toward that target and can cover taxes or tags so you borrow less.
Shorten The Term
Stretching to 72 or 84 months may shrink the monthly number, but it inflates total interest and keeps you upside down longer. A 48–60 month plan, free of extras, often delivers a safer payment and a faster path to equity.
Shop Lenders The Right Way
Submit applications inside a short window. The scoring models group auto-loan inquiries made close together as one event, which lets you compare offers without a big score hit. Cast a wide net: a hometown credit union, an online bank, and the dealer’s network.
Use A Credit Union Or Bank Preapproval
Bring a written offer to the store. It forces any indirect lender to beat that number, not just meet it. If the desk beats the APR with the same term and no extras, great. If not, you already have financing that works.
Consider A Co-Signer Only If Needed
A willing co-signer with strong credit can lower the rate. Set clear ground rules first. Missed payments ding both files. If you can qualify solo by picking a slightly cheaper car or adding a bit more cash down, that path stays cleaner.
Preapproval Steps That Work With A Fair Score
Pull Reports And Fix The Easy Stuff
Scan all three bureaus for errors, duplicate collections, or paid accounts that still show open. Cleaning clear mistakes can move a score by a few points, which sometimes bumps you into a better tier and lowers APR.
Document Income Clearly
Have 30 days of pay stubs, last year’s W-2 or 1099, and bank statements ready. Gig income needs deposits that line up with the claimed amount. A stable picture smooths underwriting and speeds funding.
Set A Firm Budget Before You Shop
Add principal, interest, taxes, title, registration, and insurance to see the real monthly number. Cap the payment so the budget still has room for savings and repairs. Leave a cushion for tires, brakes, and routine service.
Dealer Office Tactics: What To Accept And What To Refuse
Skip Packed Add-Ons
Be wary of extras bundled into the loan—GAP waivers, service contracts, tire plans, paint coatings, and similar items. Federal consumer agencies point out that many add-ons carry narrow benefits while adding cost. If you want GAP, compare a credit-union quote first and buy only if the price and terms make sense.
Watch For Rate Markups
Dealers often send your application to several indirect lenders and can add a markup above the lender’s buy rate. That spread flows into your payment. Arrive with preapproval and ask for the buy rate to keep the number honest.
Say No To Yo-Yo Delivery
Do not drive off unless financing is final. If the store calls days later claiming the bank backed out and asks you to sign a new contract at a higher rate, bring the car back and reset the deal. That protects you from surprise terms.
Which Cars Tend To Approve More Easily Near 600
Pick a reliable used model with a fair price and steady resale. Modest miles, clean history, and a mainstream trim help lenders feel better about the collateral. A private-party bargain can save money, but many banks prefer franchise-dealer cars for loans in this range.
Sweet Spot Targets
Think two- to five-year-old sedans, hatchbacks, and small SUVs with complete maintenance records. Skip high-end packages that add thousands without raising resale. Spend the savings on maintenance and a shorter term.
Negotiation Script You Can Use
At The Lot
“I have a written offer at X% for 60 months on up to $Y with no add-ons. If your lender can beat that rate at the same term and no extras, we can write it today.”
If the finance desk presents a lower monthly number, ask for the interest rate and the term in writing. A longer term can hide a higher rate. Keep the focus on APR and the out-the-door price, not just the payment.
Rate, Term, And Payment Levers
Small Moves That Change The Math
Each of these nudges can shift an approval at the margin:
- Round up your down payment by another $500–$1,000.
- Pick a car that is $1,500 less than today’s target.
- Drop from 72 months to 60 months.
- Raise a credit-union share balance to qualify for a member rate break.
Real-World Payment Scenarios Near This Score
These estimates reflect common outcomes for fair-range files. Numbers are for a 60-month term with no extras; taxes and fees vary by state.
| Loan Amount | APR Range | Est. Monthly (60 mo) |
|---|---|---|
| $12,000 | 13%–19% | $274–$311 |
| $20,000 | 13%–19% | $456–$518 |
| $28,000 | 13%–19% | $639–$725 |
When Saying “Not Yet” Saves Money
If the only approvals come with steep APRs and long terms, pause. Spend 60–90 days paying every bill on time and trimming card balances. Many lenders refresh scores before funding, and a small bump can open better pricing.
Frequently Missed Details That Cost Buyers
Insurance Shock
Quotes for the target car can swing widely. Run the VIN through a quote before you sign. A car that is cheap to insure can offset a higher rate and keep the budget steady.
Taxes And Fees
Rolling everything into the loan raises the balance and the interest cost. Paying taxes and tags in cash when possible lowers the monthly line and the total paid.
No Price On The Add-On Menu
If a protection plan appears on a worksheet without a clear price and term, strike it. Ask for a blank contract and restart the paperwork if needed.
What Approval Looks Like Step By Step
1) Quote And Budget
Pull a credit-union preapproval, set the max payment, and build a short list of models that fit. Use the preapproval rate to compare any dealer offer.
2) Test-Drive And Inspection
Drive the car on city streets and a highway. Ask for a pre-purchase inspection on used picks. A clean inspection helps a lender feel better about the collateral at this score.
3) Final Paperwork
Bring a driver’s license, proof of insurance, proof of income, proof of residence, and your down payment. Read every form. If a number changed from the agreed terms, stop and compare to your preapproval.
Why Credit Unions Often Win Near This Score
Member-owned lenders tend to post plain pricing and smaller fees. Many run first-time buyer or rebuild programs that pair fair-risk files with shorter terms and reasonable rates. If a share deposit is required to join, treat it like savings, not a fee.
Refi Plan If You Must Buy Now
Life happens. If you need a car today, pick a modest model, keep the term short, and plan for a refinance after six to twelve on-time payments. Many lenders will review a file once payment history settles in and the balance drops.
Bottom Line
You can get an approval near 600 with the right mix of cash, a sensible car, and clean paperwork. Preapproval sets the anchor, a real down payment trims the rate, and a shorter term protects your budget. Keep extras off the contract and let lenders compete for your business.