What Car Loan Rate Can You Get With a 500 Credit Score?
A 500 credit score puts you in the deep subprime tier, with car loan rates of 22%–30%. Here's what to expect and how to improve your chances.
A 500 credit score is in the deep subprime range, which means car loan rates will be high — typically 22% to 30% in Canada. But you can still get approved, and there are ways to reduce the cost.
What Rate to Expect With a 500 Credit Score
| Loan Amount | Term | Rate | Monthly Payment | Total Interest |
|---|---|---|---|---|
| $15,000 | 48mo | 26% | $467 | $7,416 |
| $20,000 | 60mo | 26% | $596 | $15,760 |
| $25,000 | 60mo | 28% | $772 | $21,320 |
At these rates, interest can exceed 50% of the vehicle's price over the loan term.
How to Get Approved With a 500 Credit Score
- Make a large down payment — 20%+ is often required; 30%+ improves your terms
- Have stable income — Lenders want to see 6+ months at the same job
- Choose an affordable vehicle — Stick to $15,000–$20,000 to keep payments manageable
- Use a co-signer — A co-signer with 700+ credit can get you a rate of 12–16% instead
- Work with a specialized lender — Mainstream banks will decline; you need a subprime specialist
How to Reduce the Cost
Shorter Term
A 48-month loan at 26% costs less total interest than a 72-month loan at the same rate:
- 48 months: $15,000 loan = $7,416 in interest
- 72 months: $15,000 loan = $11,124 in interest
That's $3,708 less interest with a shorter term.
Larger Down Payment
Putting 30% down instead of 10% on a $20,000 vehicle:
- 10% down ($2,000): Finance $18,000 → $14,184 interest at 26%/60mo
- 30% down ($6,000): Finance $14,000 → $11,032 interest at 24%/60mo
That's $3,152 saved.
Plan to Refinance
After 12–18 months of on-time payments, your credit may improve enough to refinance at a lower rate. Going from 26% to 15% on a $15,000 balance saves about $80/month.
What Lenders Look For at 500 Credit Score
- Income: Minimum $1,500–$2,000/month
- Employment: 6+ months at current job
- Residence: 6+ months at current address
- Down payment: 15–20% minimum
- No recent repossession: Most lenders require 1+ year since any repossession
The Bottom Line
A 500 credit score means high rates, but you can still get a car loan. The key is a large down payment, a short term, and a plan to refinance once your credit improves. Get pre-qualified to see what rate you qualify for.
See also: 550 credit score rates, 600 credit score rates, and our Credit Score & Rate Tool.
Frequently asked questions
What car loan rate can I get with a 500 credit score? Expect deep-subprime rates, typically around 22% to 30%, depending on your income, down payment and the vehicle.
How much down payment do I need with a 500 credit score? Lenders often ask for 20% or more at this score. A larger down payment lowers the amount financed and can improve your rate.
Can I refinance a high-rate car loan later? Often, yes. After a year or more of on-time payments and an improved score, you may qualify to refinance at a lower rate.
Affordrive is a Canadian vehicle-shopping and financing-information platform designed to help consumers understand their options before connecting with a dealership.
Affordrive does not guarantee financing approval. Financing decisions, rates, terms and vehicle availability are determined by the applicable lender and dealership.
Information on this page is for educational purposes and should not be considered financial advice. Read how we write and update our guides and how Affordrive makes money.