Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Auto Loans
Profile Image

Question By

0 Contributions
0 People Helped
Can I get approved for a auto loan of $14,000 with a credit score of 525?
I plan on putting down a down payment of $5000+ because my credit score is so low. Is it possible for me too even get a car loan or am I being unrealistic with such a poor credit score. If I do qualify for the car will paying on time boost my credit score?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

All Responses

Results 1-10 of 32Results per page: 5 | 10 | 25Page 1 of 4   Previous | Next
4 Contributions
283 People Helped

It's Not Impossible...

Helpful to 188 out of 215 people

It's not entirely impossible to get an auto loan with a low credit score. I recently purchased a 2012 VW Jetta through CarMax and was approved for a $17K loan over a term of 72 months from American Credit Acceptance. My Credit Karma score was 585 at the time, Equifax and Experian were in the 550's. Now, the catch is I'm paying an 18% interest rate, but I knew I was going to pay an astronomical rate and actually budgeted for up to 25% when I was looking for cars (not realistically, but just to be on the safe side). It's not the worst thing in the world as I didn't think I would be eligible for financing, period. Since I've obtained the loan 2 months ago, my TransUnion score is now at 613 and Experian and Equifax are increasing at about the same rates. My plan is to keep making payments on time and try to obtain a credit card sometime this year so I can either refinance the loan or trade this car in for a better rate in 2016.

When financing a car on poor credit, you have to keep two things in mind- 1) You're going to get ridiculous rates with ridiculous companies & 2) You also have to see it as an investment for an opportunity to repair your credit. Remember, all mistakes come with consquences, your credit included. If responsible with what you are given, your score should rise to reflect your responsibility. Once you've established credit worthiness, you'll be able to apply for a loan with more desireable terms. 

Reply by

1 Contribution
3 People Helped
Helpful to 3 out of 3 people

I made the exact deal for a car loan with low credit score for 72 mos and 18% interest. Just checked my credit score and it has gone up..

1 Contribution
45 People Helped


Helpful to 45 out of 49 people

I had a credit score of 509 when I was started looking into getting a loan for a car, I put down 3,000 & the loan amount was $15,000. However the interest rate is rather high 18%,. I have not been late on any payments and am coming up on 1 year, I do plan on refinancing. Also in the last 8 months my credit score has gone up almost 50 points.

2 Contributions
77 People Helped

Helpful to 73 out of 88 people

yes is possible, but you will not get the best rates available, (even with 5k down) best suggestion is start with saying im putting 1k down and work your way up untill you can get what you want some dealer will finance you with just 1000 down, just dont tell them you have 5k yet .

1 Contribution
8 People Helped


Helpful to 8 out of 8 people

Was in the same boat as you. Still am. :) Was able to get a loan financed but had to put $800 down. The lower your credit score the more difficutl it will be to find anyone that will finance you at a low rate if anything at all. most institutions shy away from low credit scores of 660 or lower but if you come in with a healthy cunk of change as a down payment then you should get financed. Just be ready for the high interest rates/monthly payments. :) Good luck!

Top Contributor
51 Contributions
178 People Helped

Consider buying a good used car instead

Helpful to 41 out of 49 people

If you want a car costing 14K, then it must be a compact or some other very reasonably priced auto.  I know you want to improve your credit, but I would try to find other ways such as a much smaller consumer loan for something you need.

If you search around carefully, you can outright buy a pretty decent used auto for five grand.  Keep it a couple of years and work on your credit in less costly ways. 

1 Contribution
7 People Helped

I think yes.

Helpful to 7 out of 8 people

My score wasn't much higher than that and Drive Time aproved me for more than 14k with a smaller down payment. Unfortunately though, lower credit score = higher financing rates. 

1 Contribution
52 People Helped

Helpful to 52 out of 71 people

Your best bet is to go to a credit union and get preapproval for the loan, then you know or don't know. I think they offer better rates. We just got a new car, and qualifed for the best CU rates (2.44% for 60 months) and Ford quoted us 5.5%. We are picking the new car up Thursday, and the dealer is going to look into lower rates, though I doubt they will find. 

I don't think you are being unrealistic, depending on why your credit score is low. I have 93% average credit card utlilization (long story, but had a mortgage and rent for a while, sold last month) but have never missed a payment in my life, which is why I think the credit union allowed us the lower rate. I was hoping on paying down my cards first, but my car crapped.  

My brother in law has a credit score in the 580s and got a 12,000 loan after 10% down, though his interest is 14% for that. He was stupid when he was 18-20 and is now building his credit back up slowly. 

1 Contribution
12 People Helped

Helpful to 12 out of 16 people

That's a very vague question.  The answer to that is not a one size fits all type of thing.  A bankruptcy can affect your score differently than it may affects some else's depending on your credit state before the bankruptcy.  You're best bet is to find out what your FICO score is, not the scores you get off here or elsewhere.  Take that FICO score, have a meeting with a personal banker at your bank and ask them these questions.  Their expertise should be able to give you an around about idea of what apr range you could end up with based on your FICO.

7 Contributions
72 People Helped

cash is king

Helpful to 32 out of 49 people

if you have over 5k in cash, why dont you buy a car outright?

if youhave money to put every month towards a car which will probably be have > 10% APR  you more than enough money to make any small repairs the MIGHT come up 5k will get you a rather decent used vehicle. and from there maybe the money you save on your auto loan you can put into savings or use to clean up your credit. im guessing more than a few deliquencies that you could pay back for delete

Reply by

3 Contributions
76 People Helped
Helpful to 33 out of 43 people

Why would he buy the car outright, when the autoloan could help improve his credit?

The $5000+ (A little more for the downpayment always helps!) can be the right down payment to make you go from a subprime, to a prime lborrower.  This all depends on where you go, and the car you choose.  The car needs to book out very well.

Things that can help a car book out:

Certified Pre-owned! This option is always your best way to go, this means this car has gone through a thorough inspection, and is in like-new or as close as possible condition.

less than 75k miles, and 5 years old or newer. The less wear and tear on the vehicle, the better. With this, look for a vehicle with a few extra options. The older/more miles the vehicle has, the better deal would be had with more options. (A Sonata SE with leather seats books better than a GLS in this case.)

The better loan you get with the lower APR, the better it can help your credit score.

1 Contribution
25 People Helped

will help in life long run

Helpful to 25 out of 34 people

my credit was as low as your and I put the same amount down but my truck was $12,000 yes they will find someone to finance your vehicle, just make sure your payments are always on time it will go up in six months mine went from 520 to 590.

Results 1-10 of 32Results per page: 5 | 10 | 25Page 1 of 4   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.


Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.