What Credit Score is Needed to Buy a Car? Tips for Approval

There is no official minimum credit score to buy a car. Lenders approve borrowers across the whole range, including scores under 500, and price the risk into the rate. In Experian's Q2 2026 data, super-prime borrowers (781+) averaged 4.41% on a new car, while deep-subprime borrowers (300 to 500) averaged 16.11%. A 661 gets you prime pricing.

If you’re planning to use an auto loan to purchase your next vehicle, you’re in good company. Over 80% of new vehicles and more than a third of used vehicles in the U.S. are bought using financing.

Auto loans make buying a vehicle possible for people who aren’t willing or able to pay the full purchase price upfront. However, the drawback is that lenders use your credit history to determine whether you qualify for these loans. So what credit score is needed to buy a car?

How Your Credit Score Impacts Auto Loan Interest Rates

Lenders generally increase interest rates for borrowers with lower credit scores to mitigate risk. Generally, having a higher credit score will make it easier to qualify for car loans and allow you to access better terms, such as lower interest rates. The interest scale for a new car loan may look like this:

• 781 and above: 4.41%
• 661 to 780: 6.15%
• 601 to 660: 9.71%
• 501 to 600: 13.52%
• 300 to 500: 16.11%

If you have a higher credit score and get a better interest rate, you’ll have lower monthly payments on the same loan amount.

Let's say two people take out a 36-month loan for $20,000. Person A has a credit score of 785, and Person B's credit score is 550. Person A gets their loan at 4.41% interest and pays $594.13 per month. Person B's loan has 13.52% interest, so they pay $678.90 each month.

The difference adds up: Person B ends up paying $3,051.53 more than Person A over the loan's entire term.

Minimum Credit Score Requirements To Buy a Car

Each lender sets their own minimum credit score requirements for borrowers. If you have bad credit, you may still be able to find a lender willing to give you a car loan, although it will likely have a higher interest rate.

On average, borrowers qualifying for new car loans have an average credit score of 755. Used car loan borrowers had a lower average credit score of 691. The credit score needed to buy a new car is typically higher than the minimum score requirement for a used car loan.

The score a lender checks may not be the one in your banking app. Many auto lenders pull an industry-specific FICO Auto Score, which runs from 250 to 900 and weights your past car-loan history more heavily. Others use VantageScore, and Experian's tier data is built on VantageScore 4.0. Which bureau gets pulled, Experian, Equifax or TransUnion, depends on the lender, so it helps to know how lenders use credit scores before you apply.

What Is an Acceptable Credit Score To Buy a Car?

Generally, anything above 660 is an acceptable credit score to buy a car. Lenders use these credit score thresholds to categorize your risk level:

• Superprime: 781-850
• Prime: 661-780
• Near-prime: 601-660
• Subprime: 501-600
• Deep subprime: 300-500

Search for loans specifically geared toward borrowers with your risk profile to find options you may qualify for. Remember the credit score needed to buy a used car is typically lower, so consider a used vehicle if your credit reports aren’t as strong as you’d like them to be.

And if you aren’t planning to make a down payment, consider that the credit score needed to buy a car with no money down is generally higher.

How Credit Scores Affect Loan Terms Beyond Rates

Your credit score can also affect the terms of your loan. Borrowers with better credit have access to higher credit limits, lower down payment requirements, fewer fees, and more flexible repayment options.

Loan Options by Credit Score Tier

Your loan options depend heavily on your credit score. Buyers with excellent to good credit get the best rates and more flexible terms, while buyers with fair or poor credit get higher rates and more limited loan terms.

Here is what each tier paid on average in Experian's Q2 2026 auto finance data. Use it as a benchmark when you compare auto loan offers: if a quote sits well above your tier's average, keep shopping.

Source: Experian, State of the Automotive Finance Market, Q2 2026 (VantageScore 4.0 tiers).

So is 620, 640 or 670 a good credit score to buy a car? A 620 or 640 lands in near prime. You will likely get approved, but at Q2 2026 averages you would pay about 9.71% on a new car and 13.93% on a used one. A 670 clears the prime line at 661, which drops those averages to 6.15% and 8.81%. If you sit at 650, a few months of credit cleanup before you apply can be worth more than haggling over the sticker price.

If you don’t qualify for the best loans now, you can explore subprime and second-chance auto loans that have less strict credit requirements. You can always refinance later if your credit improves and you qualify for better terms, such as taking advantage of car loan refinance for SSI recipients.

Strategies for Getting Approved with Bad or Average Credit

Adding a cosigner is one way to get approved for a loan with bad or average credit. A cosigner is someone with better credit who strengthens your loan application by agreeing to make payments if you default on your loan.

You can also work on improving your credit, though this is not an instantaneous process.

How To Improve Your Credit Before Buying a Car

Maybe you don’t want a cosigner. What credit score is needed to buy a car without a cosigner? There’s no universal requirement, but 660 is a good baseline to strive for.

Try these tips to boost your credit score:

• Improve your payment history by consistently paying your bills and making credit card minimum payments on your loans on time.
• Avoid closing out a credit card, as one impact of closing credit cards is often a lower credit score.
• Pay down your other existing debt to reduce your credit utilization (the percentage of your total credit limit that you’re using).

Preapproval Process: What To Expect

The preapproval process is a way for lenders to conditionally offer you an auto loan at a specified loan amount and interest rate. Getting preapproved doesn’t guarantee you’ll be approved for the loan, but it’s a good sign. As long as you don’t experience any drastic financial changes between getting preapproved and finalizing the loan, you will likely get the loan on the preapproved terms.

From there, you can use your preapproval information to determine how you can spend on a vehicle based on the auto loan amount and interest rate listed in your preapproved offer. You can also estimate your monthly payments to help you purchase a vehicle that fits your budget.

To get preapproved, follow these steps:

1. Check your credit score so you know which loans you may qualify for.
2. Search for lenders that offer auto loans to people in your credit bracket.
3. Research the lenders to put together a list of a few good contenders and apply for preapproval from them. You’ll probably need to provide personal information, credit history, and proof of income.
4. Compare your preapproval offers to see which loan works best for you.

You can formally apply for a loan from whichever lender provides the best preapproved loan terms once you’re ready to buy a vehicle.

What Do You Need to Buy a Car? Documents Checklist

Your credit score gets you approved. The paperwork gets you out of the dealership. Missing one document is the most common reason a same-day purchase turns into a second trip, so bring all of this whether you finance through the dealer, a bank or a credit union.

FAQ

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