Myth busting: You DON’T need “perfect” credit to buy a car, but here’s what does matter.
Let me be blunt: your credit score doesn’t grant you a car, but it shapes your deal. The difference between a 700 score and a 580 score might cost you thousands over the life of your loan. Yes, lenders care about approval odds, but more importantly they care about risk, so they use your score to decide your interest rate, required down payment, loan term, maybe even which cars you can finance.
So while “what credit score is needed to buy a car” sounds like a simple question, the real answer is: it depends. But don’t worry, we’ll peel back the layers together.
Rate Breakdown by Credit Tier
Here’s a rough sketch (U.S.-based) of how interest rates can vary by credit score tier. These are approximate and change over time, but they help illustrate the point:
| Credit Tier | Score Range | Typical Interest Rate* |
|---|---|---|
|
Excellent |
781 – 850 |
2% – 4% |
|
Very Good |
661 – 780 |
4% – 7% |
|
Good / Average |
601 – 660 |
7% – 12% |
|
Fair / Subprime |
501 – 600 |
12% – 20%+ |
|
Poor |
≤ 500 |
20%+ and limited lender options |
* These ranges reflect new‑car financing rates in many U.S. markets (as of 2025). Your rate might be higher or lower depending on lender, local market, loan term, down payment, and more.
You see what’s happening: your credit score doesn’t just decide “yes or no.” It decides how much extra you’ll pay.
Average Credit Scores for Car Buyers
If you look at actual buyers, many fall in the “good to very good” bracket. According to data, the average auto loan borrower might have a credit score somewhere in the mid‑600s to low 700s. That sounds like a broad range, and it is, because so many variables are in play (income, debt, vehicle type, down payment).
I’ve seen cases where buyers with scores in the 500s did get loans, but often via subprime lenders or buy‑here, pay‑here dealerships, and those usually come with sky‑high rates and risk of repossession if you slip. So while it happens, it’s not something I’d recommend if you can avoid it.
Industry‑Specific Scores: FICO Auto Score
Here’s a nuance many people don’t realize: auto lenders often use a FICO Auto Score, a version of the FICO score tailored for car financing. It weights things a bit differently than your “general use” FICO or VantageScore.
- The Auto Score emphasizes your history with installment debt (like auto loans) more than, say, your credit card behavior.
- Late auto payments, repossessions, or auto collections hurt you more in the Auto Score model.
- Also, when you apply with multiple lenders around the same time (within a short window), many scoring systems treat them as a single inquiry, which helps when shopping around for the best rate.
So even if your general credit score is “good,” your Auto Score might be a little higher or lower depending on your past auto/loan behavior.
How to Check Your Score & Get Pre‑Approved
You don’t want to walk into a dealership blind. Here’s how to come in smart.
1. Check your credit reports and scores
Use free tools (AnnualCreditReport in the U.S., or local credit bureaus in your country) to pull your credit reports.
Many banks and credit card issuers now show you your credit score monthly for free.
For more details, you may want to pay (or subscribe) for a score that shows the breakdown and how lenders might view it.
2. Review your debt‑to‑income ratio (DTI)
Even with a good score, if your monthly debts are too high relative to your income, lenders might hesitate.
Improve your odds by paying down credit cards, avoiding new debt, or increasing your income before applying.
3. Get pre‑approval offers
Shop around with banks, credit unions, online lenders.
A pre‑approval gives you a rate range and shows you what you likely qualify for, it also gives you negotiating power at dealers.
4. Simulate different loan terms
Ask lenders what your monthly payment and total cost would be at 36, 48, even 60 months.
Be cautious: lower monthly payments over longer terms often come with higher overall cost (because of interest).
How to Improve Your Score Before Buying
If you’re on the cusp, say your score is 620 or 580, it is possible to make meaningful improvements in a few months. Let me break it down.
Quick Wins (3–6 Months
Pay down revolving balances
Credit utilization is a heavy factor. Bring your card balances below 30% (ideally <10%) of each limit.
Catch up on late payments
Even one missed payment can sting. Bring accounts current and stay current for at least a few billing cycles.
Avoid new credit inquiries
Don’t open new cards or request new loans during your ramp‑up period. Every “hard inquiry” can ding your score slightly.
Negotiate to remove errors
Dispute any inaccuracies (wrong late payments, duplicate collections) on your credit report. If you succeed, your score might move fast.
Become an authorized user
If a trusted family member has a well‑managed, long‑standing account, being added (without using the card) might help your length‑of‑credit history and utilization
Long-Term Habits
Make on‑time payments, always
The single biggest driver of credit health.
Keep older accounts open
Even if unused. Closing them can shrink your average account age.
Diversify credit mix (wisely)
A blend of installment (auto, student loan) and revolving (credit cards) can show you can handle different types.
Avoid “minimum‑pay habit”
If you always pay just the minimum on credit cards, balances can linger. Try paying more whenever possible. If you’re on the cusp, say your score is 620 or 580, it is possible to make meaningful improvements in a few months. Let me break it down.
What Credit Scores Can Still Get You a Car Loan
Here’s how things typically break down in practice (not just theory):
- Scores 660–780+: You’ll have many lender options, likely favorable rates, and solid negotiation power.
- Scores in 600–660: You may get loans, but interest rates are higher. Lenders might ask for a down payment or co-signer.
- Scores in 500–599: Subprime lenders or special financing programs might consider you. But expect steep interest, stricter requirements, and limited car choices.
- Scores below ~500: Very few lenders will approve. You may need to rebuild first, or consider alternative arrangements (e.g. buying with cash, used cars from no‑credit dealers, etc.).
Here’s a nuance: sometimes, making a larger down payment or picking a shorter loan term can offset your credit weakness and make you more attractive to lenders. It’s not guaranteed, but it’s a lever you can pull.
Also, if you’re in a country outside the U.S., credit systems differ. Some lenders may put heavier weight on employment stability, proof of income, or local credit history. (So yes, what “good score” means will shift depending on where you are.)
Wrapping Up
Back to our original question: What credit score is needed to buy a car? There’s no single universal number. But to get decent terms, aiming for 660+ is wise. Anything lower doesn’t automatically shut doors, but it increases friction, cost, and risk.
If your score is already solid, get pre‑approved, compare offers, and negotiate. If it’s shaky, take a few months to make improvements (pay down debt, fix inaccuracies, avoid new credit). It might feel slow, but when you’re sitting behind the wheel, you’ll appreciate what a few extra points saved you.
