What Is the Average Annual Percentage Rate on a Car Loan for a Borrower With a Credit Score of 500?

The percentage rate on a car loan for a borrower with a credit score of 500 could range from 13.5 to more than 20 percent. The specific rate depends on the lender's method of determining the borrower's score.

Car companies have the option to use FICO or VantageScore to determine the overall credit score of applicants. FICO scores below 640 are considered poor. VantageScore ratings run from super prime to high-risk, where scores of 600 and below are considered high-risk. Poor or high-risk scores tend to receive loan terms with the highest interest rates. Bankrate reports that, as of 2013, sub-prime borrowers whose scores fall slightly above 600 received interest rates of 13.5 percent on average. CarsDirect suggests that scores below 600 tend to receive high interest rates of 20 percent.