What credit score is needed to buy a car?
Many people assume you need a particular credit score to buy a car, but that’s not really the case. Auto lenders generally don’t have a specific minimum requirement and approve car loans for a wide range of credit scores. For the most part, borrowers getting approved for auto loans have credit scores ranging from 501 to 850, but you could still qualify with a score lower than this.
However, you’ll have a much easier time getting approved for the most competitive rates and terms if you have a good credit score, which is usually considered to be 670 or higher.
If you’re wondering what credit score is needed to buy a car, here’s what to know.
Credit score needed for a car loan
If you’d like to qualify for competitive car financing, your credit score should ideally be somewhere between 600 to 700 or higher. If your score falls in this range, you’ll generally have an easier time getting approved and might qualify for better interest rates.
However, you could still qualify for a car loan with a lower score. Subprime lenders often work with buyers whose scores fall in the 501 to 600 range, though the tradeoff is usually a higher interest rate and less favorable terms.
The reason credit matters so much is simple: Lenders use your credit to estimate how likely you are to repay a loan. If you’re more likely to repay, you’re less of a risk to the lender, and thus, you receive lower borrowing costs.
What else lenders look at
Credit score isn’t the only factor that determines whether you’ll get approved or what your loan terms will look like. Here are some other common details that lenders consider:
- Income and employment stability: Lenders want to see that your income is high enough to comfortably make your monthly payments.
- Debt-to-income (DTI) ratio: Your DTI ratio measures how much of your income already goes toward debt each month. If you have a lower ratio, it signals to lenders that you have a smaller amount of debt compared to your income, so you’re more likely to be approved for a new loan.
- Down payment: The more you can put down on a new vehicle, the better, because it reduces how much you have to borrow. In turn, this lowers the lender’s risk, which makes it more likely that you’ll get approved.
- Repayment term: The term you choose impacts your monthly payments and how much interest you’ll pay. It’s usually best to pick the shortest term you can afford to minimize your interest costs. Choosing a shorter term can also be a plus in a lender’s eyes because it means the lender will recoup its costs quicker.
- The vehicle itself: The price, age, and mileage of the car can also influence whether a lender approves the loan.
Average credit score to buy a car
As of the fourth quarter of 2025, the average credit score is 753 for a new car loan and 689 for a used car loan, according to a recent Experian State of the Automotive Finance Market report.
There’s a simple reason for the difference: new cars usually cost more. Because the loan amounts are higher, lenders tend to approve buyers with stronger credit profiles. Since used vehicles are typically less expensive, lenders can be more willing to work with borrowers whose credit falls below the prime range.
Average auto loan interest rates by credit score
Here’s how average auto loan rates often break down by credit tier:
| Credit tier | Credit score range | Average new car APR | Average used car APR |
|---|---|---|---|
| Super prime | 781 - 850 | 4.66% | 7.70% |
| Prime | 661 - 780 | 6.27% | 9.98% |
| Near prime | 601 - 660 | 9.57% | 14.49% |
| Subprime | 501 - 600 | 13.17% | 19.42% |
| Deep subprime | 300 - 500 | 16.01% | 21.85% |
*Data collected from the Q4 2025 Experian State of the Automotive Finance Market report
How your credit score affects your loan payment
Two people can finance similar cars and end up with very different payments simply because one has a better credit score.
Here’s how average monthly car payments break down by credit tier:
| Credit tier | Credit score range | Average new car monthly payment | Average used car monthly payment |
|---|---|---|---|
| Super prime | 781 - 850 | $748 | $535 |
| Prime | 661 - 780 | $773 | $523 |
| Near prime | 601 - 660 | $810 | $545 |
| Subprime | 501 - 600 | $792 | $557 |
| Deep subprime | 300 - 500 | $767 | $558 |
*Data collected from the Q4 2025 Experian State of the Automotive Finance Market report
Can you buy a car with bad credit?
Yes, you can buy a car with bad credit. For car loans, the term “bad credit” typically refers to scores below 600, which fall in the subprime and deep subprime credit tiers. According to Experian data:
- 2.23% of car loans go to borrowers with credit scores below 500
- 14.63% of car loans go to borrowers with scores from 501 to 600
In other words, out of all car loans issued, about one in six go to buyers with credit scores under 600. That said, your approval odds for getting a car loan will be much higher if you buy a used car instead of new. Here’s how loan approvals break down:
| Credit tier | Credit score range | % of new car loans | % of used car loans |
|---|---|---|---|
| Super prime | 781 - 850 | 46.77% | 22.78% |
| Prime | 661 - 780 | 35.33% | 35.88% |
| Near prime | 601 - 660 | 11.28% | 18.86% |
| Subprime | 501 - 600 | 6.06% | 19.32% |
| Deep subprime | 300 - 500 | 0.56% | 3.15% |
*Data collected from the Q4 2025 Experian State of the Automotive Finance Market report
How to get a car loan with a low credit score
While getting an auto loan with a low credit score can be harder, it’s not impossible. Here are some strategies that could improve your odds of qualifying for a car loan — and possibly getting a lower interest rate — with bad credit:
- Check your credit score before you apply. Your credit score can fluctuate from month to month, so check it to get a baseline for where you stand. If you’re not in a rush to purchase, consider making a plan to raise your score before applying. It’s also a good idea to review your credit reports and dispute any errors to potentially boost your score. You can visit AnnualCreditReport.com to get weekly online credit reports from the three credit bureaus (Equifax, Experian, and TransUnion) for free.
- Save for a larger down payment. The more you can put down, the less you have to borrow. That makes you less risky to lenders, which can make it easier to get approved. It can also help offset a lower credit score.
- Get preapproved before going to the dealership. Taking the time to get preapproved for a car loan can give you a clear picture of what rates you could actually qualify for. It also helps you avoid relying on dealership financing, which isn’t always the most competitive option.
- Shop around with a few different lenders. Rates can vary more than you’d think, especially if your credit score is below 600. Check with a variety of banks, credit unions, and online lenders to compare offers and avoid overpaying.
- Consider a cosigner if it’s an option. Having a cosigner with strong credit can increase your approval odds and might help you qualify for a lower interest rate. Just keep in mind that they’re equally responsible for the loan.
- Pay attention to the full loan cost. While getting a lower monthly payment might seem like a win, it can often mean choosing a longer repayment term and paying more in interest over time. It’s worth looking at the total cost before you commit.
Next up: How much car insurance should you get?
Credit score needed to buy a car FAQs
Yes, it’s possible to buy a car with no credit history. However, a car loan for someone with no credit history will likely come with less-than-favorable terms.
Instead, you might be better off saving up and paying cash for a used car you can afford. You can then focus on building your credit until you’re ready to finance for a different vehicle in the future. Bonus: the car you originally bought might even have some trade-in value later on.
Yes, it’s possible. But your options will be more limited. Based on recent data, only about 0.56% of new car loans and 3.15% of used car loans go to borrowers with credit scores in the 300 to 500 range. These percentages jump up to 6% for new car loans and 19% for used car loans if your score is in the 501 to 600 range. If your score is 500 or lower, you can expect higher interest rates, and you might need a larger down payment or cosigner to qualify.
There’s no exact score you’ll need to get a $30,000 car loan, but a score of 700 or higher will likely give you more options and better rates. You can still qualify with a lower score, but your income, debt, and down payment will matter even more at that price point.
It’s usually a combination of factors, not just your credit score, that can disqualify you from auto financing. For example, lenders might deny you if:
- Your income is too low
- Your debt is too high
- Your credit history is very limited
- You’ve recently missed payments or defaulted on loans
Many dealerships can pull from each of the credit bureaus — Equifax, Experian, or TransUnion (sometimes all three) — and your credit score could vary slightly depending on which report is checked. The exact score dealerships use depends on the lender they’re working with. You can always ask which score a dealership will pull before you apply for a loan.
