Is 600 a Good Credit Score?
Your credit history will affect what kind of loan you can secure, so is 600 a good credit score to buy a car? If your credit score is 600, you’re likely to find yourself in the subprime loan range. At Green Light Auto Credit, we’re committed to helping those with less-than-perfect credit secure a rate that works with their budget, so read on to see what you can expect in the process.
How Good is a 600 Credit Score?
Credit scores fall on a set scale ranging from 300-850, with 850 being the highest score you can achieve. If you’re thinking to yourself, “my credit score is 600,” you’re a little under the American average, but that doesn’t mean you won’t be able to obtain financing for buying a new car.
A 600 credit score will qualify you for a subprime loan, meaning that lenders are likely to charge you more interest due to your highest risk status. According to Experian, you can expect the following breakdown of auto loan rates:
- 781-850: Superprime loan at 3.65% (new) or 4.29% (used)
- 661-780: Prime loan at 4.68% (new) or 6.04% (used)
- 601-660: Nonprime loan at 7.65% (new) or 11.26% (used)
- 501-600: Subprime loan at 11.92% (new) or 17.74% (used)
- 300-500: Deep subprime loan at 14.39% (new) or 20.45% (used)
Is 600 a good credit score? This rating will land you in the “Fair” range, which is a step above “Poor”. The lower your credit score, the less desirable your rates and terms are likely to be, so you’ll need to factor in these additional costs when budgeting for your next car.
How to Improve My Credit Score of 600
While 600 may be on the lower end of credit ratings, there are many straightforward ways to improve your credit score. One of the easiest ways is to ensure that all of your bills are paid on time, which helps prove that you’re a responsible borrower. It’s also important not to take on more financial commitments than you can realistically handle, because having more debt than income will put you in a difficult position. Every year, you can request a free credit report to learn about what’s impacting your credit and where you can improve. This is a smart way to take control of your financial situation!
Finance a Car with a 600 Credit Score at Green Light Auto Credit!
How good is a 600 credit score? At Green Light Auto Credit, our friendly finance experts are here to help you find rates and terms that make sense for you, and we’re happy to work with those experiencing fair credit. Get pre-approved today to start the process!
