What Credit Score Is Needed to Buy a Car?

Most lenders look for a credit score of 661 or higher to offer competitive auto loan APRs, based on Experian auto-finance data. You can typically get approved with a score around 600, and some subprime lenders may work with scores as low as 500. The lower your score, the more you’re likely to pay in interest over the life of the loan.

There’s no single credit score needed to buy a car. Lenders set their own rules, and your approval can also depend on your income, debt, down payment, vehicle type, loan amount and loan term. The CFPB says auto lenders generally consider credit scores and history, income, debts, loan amount, loan term, down payment and whether the vehicle is new or used when setting your auto loan rate.

Key Takeaways

• A credit score of 661 or higher may qualify you for prime auto loan rates. Auto-finance data groups borrowers with scores from 661 to 780 in the prime tier.

• The best APRs usually go to superprime borrowers. Scores of 781 or higher tend to receive the lowest average APRs, based on Experian’s credit-tier data.

• Used car loans usually cost more than new car loans. Data shows used car APRs are higher than new car APRs across every credit tier.

• A lower score can still qualify, but it can cost more. Borrowers with scores below 660 may face higher APRs, larger down payment requirements or fewer lender options.

• A co-signer with strong credit may help. A co-signer can improve approval odds or loan terms, but they become responsible for the loan if you miss payments.

Summary generated by AI, verified by MoneyLion editors

What Credit Score Do You Need To Buy a Car?

You don’t need one exact credit score to buy a car. Auto lenders set their own minimums, and approval depends on your full financial picture. As a general rule, a score of 661 or higher may help you qualify for prime auto loan rates. A score below 661 may still qualify, but you may face higher APRs or stricter requirements.

Experian’s June 2025 auto-finance data showed average new-car APRs ranging from 5.27% for superprime borrowers to 15.97% for deep subprime borrowers. Used-car APRs ranged from 7.15% for superprime borrowers to 21.58% for deep subprime borrowers.

What Credit Score Gets the Best Auto Loan Rate?

The best auto loan rates usually go to borrowers in the superprime tier, which generally means a score of 781 or higher. Prime borrowers, typically 661 to 780, may still qualify for competitive rates, but the lowest average APRs tend to go to the strongest credit profiles.

Here’s how average APRs compare by credit tier, based on Experian’s June 2025 data.

Used car loans carry higher APRs than new car loans across every tier in this dataset. That means your credit score matters, but so does the type of vehicle you buy.

What Is a FICO Auto Score and Why Does It Matter?

A FICO Auto Score is a credit score built specifically for auto lenders. It runs on a scale of 250 to 900, which is wider than the 300-to-850 range of a base FICO Score. FICO says industry-specific scores are optimized for certain products, including auto loans, so lenders can better assess risk for that type of credit.

FICO Auto Scores may weigh your past auto loan behavior more heavily than a standard score. That means a missed car payment, repossession or strong history of on-time auto payments may affect this score differently than your base FICO Score. Not every dealer or lender uses the same score. A lender may pull:

The score you see in a free credit app may not be the same number a dealership sees when it runs an auto-specific credit report.

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

How Your Credit Score Affects What You Pay

Your credit score can affect both approval and cost. In general, lower credit scores are more likely to lead to higher auto loan interest rates, which can cost more over the life of the loan.

Here’s what that gap looks like in real dollars:

That’s a difference of roughly $5,241 in interest on the same loan amount and repayment term. A stronger credit score can help keep more of that money in your pocket.

What Else Do Auto Lenders Look At?

Your credit score matters, but it isn’t the only factor. Lenders review your full ability to repay.

The CFPB lists credit scores and history, income, debts, loan amount, loan term, down payment and vehicle type as factors lenders may consider when deciding what interest rate to offer.

What Credit Score Do You Need To Buy a Used Car?

You may be able to buy a used car with a score around 600, and some subprime lenders may approve lower scores. But used car loans often cost more than new car loans.

Experian’s June 2025 data showed that used car APRs were higher than new car APRs across every credit tier. For example, prime borrowers averaged 6.78% on new-car loans and 9.39% on used-car loans. Near-prime borrowers averaged 9.97% on new-car loans and 13.95% on used-car loans.

A used car loan may cost more because lenders consider factors like vehicle age, mileage, resale value and loan risk. If your score is below 660, compare offers carefully before signing.

What Credit Score Do You Need To Buy a Car With No Money Down?

To buy a car with no money down, many lenders prefer to see a stronger credit profile, often around 700 or higher. A strong score tells the lender you may be lower risk, so they may be more willing to finance the full purchase price.

If your score is below 660, expect to bring money down, add a co-signer or accept a higher APR. A down payment can reduce lender risk and lower how much you need to borrow. Increasing your down payment may also decrease your interest rate.

Can You Buy a Car With Bad Credit?

Yes, you may be able to buy a car with bad credit, but it can be expensive. Subprime and deep subprime borrowers often face the highest APRs.

Experian data showed average new-car APRs of 13.38% for subprime borrowers and 15.97% for deep subprime borrowers as of June 2025. Average used-car APRs were even higher at 18.90% for subprime borrowers and 21.58% for deep subprime borrowers.

If you have bad credit, consider these steps before applying:

• Save for a larger down payment

• Compare multiple lenders

• Check your credit reports for errors

• Bring proof of stable income

• Consider a co-signer with strong credit

• Choose a less expensive vehicle

• Avoid long loan terms that could keep you underwater

Can a Co-signer Help You Qualify for a Better Auto Loan Rate?

Yes, a co-signer with strong credit may help you qualify for an auto loan or receive a lower APR. A co-signer gives the lender another person to hold responsible if the loan isn’t paid. That can reduce lender risk, but it’s a serious commitment. If you miss payments, your co-signer’s credit can be damaged, and they may be responsible for the debt.

A co-signer may help most when:

• Your score is below a lender’s preferred range

• Your income is limited

• Your credit history is thin

• You have recent credit issues

• You want to qualify for a better APR

Should You Get Preapproved Before Buying a Car?

Yes, getting preapproved can help you understand your budget and compare financing before you visit the dealership. A preapproval may help you:

• See an estimated APR and loan amount

• Compare banks, credit unions and online lenders

• Negotiate with the dealer from a stronger position

• Avoid focusing only on the monthly payment

• Understand what you can afford before shopping

We recommend shopping around and comparing offers from banks, credit unions and other lenders before choosing an auto loan.

How To Shop for a Car Loan Without Hurting Your Score Too Much

Shopping for an auto loan may involve credit checks, but rate shopping is treated differently from applying for several unrelated credit products.

If multiple lenders check your credit while you’re shopping for an auto loan, it’s a good idea to keep that shopping within 14 to 45 days so the checks are generally counted as one inquiry by credit scoring models.

APR is one of the most important measures of what you pay for borrowing money and can help you compare auto loans.

How Can You Raise Your Credit Score Before Applying for a Car Loan?

If you can wait before buying, improving your credit may help you qualify for a lower-cost loan.

Pay Every Bill on Time

Payment history is one of the most important credit factors. Even one missed payment can hurt your score and make lenders cautious.

Lower Credit Card Balances

High balances can hurt your credit profile. Paying down credit cards before applying may help your score once the lower balances are reported.

Check Your Credit Reports for Errors

Review your credit reports before shopping. We recommend checking reports for errors that may prevent you from getting the best interest rates.

Save for a Larger Down Payment

A larger down payment can lower the amount you need to borrow and reduce lender risk. It may also help you qualify if your credit score is lower.

Avoid New Credit Before Applying

Opening new accounts right before an auto loan can add hard inquiries and increase lender concerns. Apply only for credit you need.

Compare Lenders

Don’t rely only on dealership financing. Compare banks, credit unions, online lenders and dealer offers so you can choose the best combination of APR, loan term and monthly payment.

When To Wait Before Buying a Car

Waiting may make sense if your credit score is close to a better range or your budget is already tight. Consider waiting if:

• You recently missed payments

• Your credit cards are near their limits

• You have several recent hard inquiries

• You don’t have money for a down payment

• You haven’t compared insurance and ownership costs

• The payment would stretch your budget

A lower monthly payment is not always the better deal. Longer auto loan terms can reduce the monthly payment but increase total interest and make it easier to owe more than the car is worth.

The Bottom Line

There’s no single credit score needed to buy a car. A score of 661 or higher may help you qualify for prime auto loan rates, while a score of 781 or higher may unlock the lowest average APRs.

If your score is lower, you may still qualify, but the loan can cost more. Before applying, check your credit reports, compare lenders, save for a down payment and review the full APR and total interest cost -- not just the monthly payment.

Key Terms

FICO Score: A credit score lenders use to predict credit risk. FICO Scores usually range from 300 to 850, and higher scores signal lower risk.

VantageScore: A credit scoring model created by the three major credit bureaus. Scores usually range from 300 to 850, and 661 to 780 is considered Prime.

Credit utilization ratio: The amount of revolving credit you’re using compared with your total credit limit. Lower utilization can help protect your credit score.

Risk-based pricing: A lending practice where rates and terms vary based on how risky a borrower appears, using credit data and other application details.

Hard inquiry: A credit check that can happen when you apply for credit. It may appear on your credit report and can temporarily lower your score.

Sources:

FICO: FAQs About FICO® Scores in the US

VantageScore: The Complete Guide to Your VantageScore 4.0 Credit Score

Consumer Financial Protection Bureau: How do I get and keep a good credit score?

Consumer Financial Protection Bureau: Auto loans key terms

TransUnion: What is a Hard Inquiry

Summary generated by AI, verified by MoneyLion editors

FAQ

What credit score is needed to buy a car with no down payment? You typically need a stronger credit profile, often around 700 or higher, to finance a car with zero down. Lenders see a higher score as lower risk, so they may be more willing to finance the full purchase price. With a lower score, you may still qualify if you bring a co-signer with strong credit.

What is the minimum credit score for a used car loan? Many lenders prefer a score of at least 600 for a used car loan, though some subprime lenders may approve scores as low as 500. Used car APRs are higher than new car APRs across every credit tier in Experian’s June 2025 data, so expect to pay more if your score is under 660.

What credit score do car dealerships actually use? Car dealerships and auto lenders may use FICO Auto Scores, base FICO Scores, VantageScore or internal lender models. FICO Auto Scores generally range from 250 to 900 and are designed for auto lending.

Can you buy a car with a 500 credit score? Yes, you may be able to buy a car with a 500 credit score, but your options may be limited to subprime or deep subprime lenders. Expect a higher APR, a larger down payment requirement or a shorter loan term. Bringing a co-signer or choosing a less expensive vehicle may improve your odds.

Does a co-signer lower your auto loan APR? A co-signer with strong credit can help you qualify for a better auto loan APR if your score falls short. The co-signer also becomes legally responsible for the debt, so missed payments can hurt both credit profiles.

Is 700 a good credit score to buy a car? Yes. A 700 score generally puts you in a stronger position than borrowers with fair or poor credit. You may qualify for more lenders and more competitive APRs, though the final offer also depends on income, debt, loan amount, down payment and vehicle type.

How can I improve my chances of getting approved for a car loan? Check your credit reports, pay bills on time, lower credit card balances, save for a down payment, compare lenders and keep rate shopping within a focused window.