What Credit Score Do You Need to Buy a Car?
Understanding how your credit score affects car loan rates, and what you can do to get the best deal regardless of your score.
Quick Answer: You can get a car loan with almost any credit score, but you'll get the best rates (under 5% APR) with a score of 720+. Most buyers are approved with scores of 660+. Below 600, expect higher rates or may need a co-signer.
Credit Score Ranges & Auto Loan Rates (2026)
| Credit Score | Rating | New Car APR | Used Car APR |
|---|---|---|---|
| 781-850 | Excellent | 5.0% - 6.5% | 6.5% - 8.0% |
| 661-780 | Good | 6.5% - 9.0% | 8.0% - 11.0% |
| 601-660 | Fair | 9.0% - 13.0% | 11.0% - 16.0% |
| 501-600 | Poor | 13.0% - 18.0% | 16.0% - 21.0% |
| 300-500 | Very Poor | 18.0%+ | 21.0%+ |
How Much Your Credit Score Costs You
On a $30,000 car loan over 60 months, here's what you'd pay in interest:
Difference between excellent and poor credit: $11,100
Can You Get a Car Loan With Bad Credit?
Yes, but expect challenges:
- Higher interest rates - Potentially 15-25% APR
- Larger down payment required - Often 20% or more
- Shorter loan terms - May be limited to 36-48 months
- Vehicle restrictions - May be limited to certain cars or price ranges
- Co-signer may be needed - Someone with good credit to guarantee the loan
How to Improve Your Auto Loan Chances
- • Check your credit report for errors
- • Pay down existing credit card debt
- • Don't open new credit accounts
- • Save for a larger down payment
- • Get pre-approved before visiting dealers
- • Compare rates from multiple lenders
- • Consider credit unions (often lower rates)
- • Shop within a 14-day window to minimize credit hits
Best Options by Credit Score
720+ (Excellent)
Shop aggressively for 0% financing deals from manufacturers. You qualify for the best rates everywhere.
660-719 (Good)
Check credit unions first—they often beat bank rates by 1-2%. You'll still get competitive offers.
600-659 (Fair)
Consider larger down payment to offset rate. Look into manufacturer subprime programs.
Below 600 (Poor)
Consider a co-signer, buy a less expensive car, or wait 6 months while improving credit.
Find Cars That Fit Your Budget
Regardless of your credit score, we can help you find the perfect car. Tell us your budget and needs, and get personalized recommendations.
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