What Does A 300 Credit Score Mean On A Car Loan?

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Automotive Content Editor

Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


, Automotive Content Editor - February 3, 2022

If you have a 300 credit score, you may find getting a car loan through traditional means difficult. Here's a look at what a 300 credit score means and how it impacts your chances of a car loan.

What a 300 credit score means. On the FICO credit scoring model, you can have a credit score ranging from 300 to 850. The higher your score, the better off you are when applying for things like auto loans and credit cards.

If you can achieve an auto loan with little to no credit score, you're likely to find the rates and terms to be a little unfavorable. The current average interest rate for a borrower with a 300 credit score, which is considered deep subprime, is between 12.99% and 19.85% according to Experian data for the third quarter of 2021.

But when you have credit that's at the bottom of the barrel, some lenders look beyond your credit score to help you qualify.

Lender options for a 300 credit score. Not all lenders are able to help borrowers in all credit situations. In fact, many traditional lenders such as banks and credit unions, and many captive lenders, don't look at borrowers with less than good credit – a FICO score of 670 or better.

If you have very low credit, or are new to using credit and have a thin file, a subprime lender may be the way to go. These lenders know that there's more to a borrower than a number, and look at other factors to help approve you for a car loan.

But, since these lenders may still factor in your credit score, you might seek the help of someone who doesn't – a buy here pay here dealership. These days, even some of these BHPH dealers do check credit, but not as often as other lenders.

Buy here pay here car lots. BHPH dealers are also known as in-house financers, and they're both lenders and dealers. This makes them uniquely qualified to work with borrowers who have little to no credit since they don't rely on third-party lenders for approval.

However, in lieu of a credit check, BHPH dealers often ask that you provide a large down payment, sometimes as much as 20% of the vehicle's selling price. You can also expect higher than normal interest rates when working with a buy here pay here financier.

How CarsDirect can help. It can be difficult to qualify for an auto loan when you're at the bottom of the credit scale. However, getting a car loan in this position isn't impossible as long as you're working with the right lender.

At CarsDirect, we want to help you find the auto loan that's right for you if you're struggling with credit issues. We work with a coast-to-coast network of special finance dealerships that want to help. To get started today, simply fill out our fast, free car loan request form.

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, Automotive Content Editor

Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


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