What Are the Odds of Getting an Auto Loan With a 590 Credit Score

Title: What Are the Odds of Getting an Auto Loan With a 590 Credit Score?


Having a credit score of 590 is considered fair, but it may present challenges when applying for an auto loan. Lenders typically evaluate credit scores to determine an individual’s creditworthiness. However, with some careful planning and understanding of the lending process, it is possible to secure an auto loan even with a credit score of 590. This article aims to shed light on the odds of obtaining an auto loan with such a credit score and provide answers to frequently asked questions.

Understanding Credit Scores

Credit scores are numerical representations of an individual’s creditworthiness, based on their credit history. They range from 300 to 850, with higher scores indicating better creditworthiness. A credit score of 590 falls into the fair category, suggesting that lenders may perceive a higher risk when extending credit.

Factors Influencing Auto Loan Approval

Apart from credit scores, lenders consider several other factors when assessing an individual’s eligibility for an auto loan. These factors include:

1. Income and Employment History: Stable employment and a steady income are important indicators of an individual’s ability to make timely loan payments.

2. Debt-to-Income Ratio: Lenders evaluate the proportion of a borrower’s income that goes towards repaying existing debts. A lower debt-to-income ratio increases the likelihood of loan approval.

3. Down Payment: Offering a substantial down payment reduces the loan amount, making it easier for lenders to approve the loan.

4. Loan Term: A shorter loan term may increase the chances of approval as it reduces the lender’s risk exposure.

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5. Cosigner: A cosigner with a stronger credit profile can significantly improve the possibility of approval.

Odds of Getting an Auto Loan with a 590 Credit Score

While a credit score of 590 may limit your options, it does not completely rule out the possibility of obtaining an auto loan. The odds of approval depend on various factors, including the lender’s requirements and the borrower’s overall financial situation. Some lenders specialize in providing loans to individuals with lower credit scores, albeit at higher interest rates.

To improve your odds of getting an auto loan with a 590 credit score, consider the following suggestions:

1. Improve Your Credit Score: Continue practicing responsible financial habits, such as making timely payments and reducing existing debts, to gradually improve your credit score.

2. Save for a Down Payment: Accumulate funds to make a substantial down payment, which can help offset the impact of a lower credit score.

3. Research Lenders: Explore lenders who specialize in working with individuals with fair credit. Such lenders may have more flexible criteria and be more likely to approve your application.

4. Consider a Cosigner: If possible, find a trusted individual with a better credit score who is willing to cosign the loan. Their creditworthiness can enhance your chances of approval.

5. Shop Around: Compare loan offers from different lenders to find the most favorable terms and interest rates available to you.

FAQs (Frequently Asked Questions)

1. Will my credit score improve by obtaining an auto loan?
While getting an auto loan does not directly improve your credit score, making timely payments over time will positively impact your credit history, potentially increasing your score.

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2. Can I refinance my auto loan in the future to get better terms?
Yes, refinancing is an option to consider. As you work on improving your credit score and financial situation, you may become eligible for better terms, including lower interest rates.

3. How high will my interest rates be with a 590 credit score?
Interest rates for individuals with a 590 credit score are typically higher than those with excellent credit. However, rates can vary depending on the lender and other factors. Shopping around and comparing offers will help you find the best rate available to you.

4. How long should I wait before applying for an auto loan after bankruptcy?
Bankruptcy remains on your credit report for several years, making it challenging to obtain credit. It is advisable to wait until your credit has significantly improved before applying for an auto loan.


Securing an auto loan with a credit score of 590 may be challenging, but it is not impossible. By focusing on improving your creditworthiness, saving for a down payment, and researching lenders, you can increase your chances of approval. Remember to explore all available options, including cosigners and specialized lenders, to find the best terms and interest rates suitable for your financial situation. With patience, perseverance, and responsible financial habits, you can work towards obtaining an auto loan and taking a step towards improving your credit profile.