How to Get a Bank Loan for a Car with a Credit Score Around 565

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November 9, 2016

When you plan to purchase a vehicle, you'll likely need to take out a loan of some kind in order to pay for that vehicle. However, it can be difficult to secure a bank loan for a car with a credit score around 565 or so. If your FICO credit score falls in this range, most lenders will label your score "subprime," and many will refuse to offer you a loan for your car purchase. The credit score needed for a car loan doesn't have a fixed limit, however, and you can certainly still find a good loan for your vehicle. Most subprime credit score loans, have steeper interest rates. Read on for some tips on getting a bank loan with standard interest rates when you plan to purchase a car with a medium or low credit score.

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Make Sure the Score is Accurate

The first thing you should do after you've received a credit score of around 565 or so is to check to make sure the score itself is correct. Look over the credit report for any signs of errors or any miscalculations. If you do happen to notice any errors on your credit report, make a contact request with the credit bureau as soon as possible. You must do this promptly to ensure the score is corrected so you can secure a proper loan and other companies do not misinterpret your credit score in any additional capacity.

Work to Improve Your Score

Your credit score is constantly changing and serves as a reflection of a huge number of small transactions and payments you make on a daily basis. If your credit score is significantly low, it can be difficult to raise it within a short period of time. However, a score of around 565 is in the range where you can make adjustments to it with wise spending habits and on-time payments. A few months of responsible spending and payments should help to boost your credit score to the level where you'll be able to secure a bank loan.

If you need additional help in raising your credit score in order to find a good loan, you'll need to speak with one of many different organizations that work to help improve credit ratings. These organizations are typically available online and can also be reached via the phone book.

Shop Around

Not all banks and other lenders are uniform in their lending policies. You may find that one particular company or financial organization does not accept your credit score, but others may. Typically, a lower credit score means a bank will consider the loan more of a risk to them. This typically results in a higher interest rate on the loan for you, as well as steeper penalties for failing to pay your loan payments on time.

For additional assistance, speak with a representative at your bank.

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