What Credit Score Is Needed to Buy a Car?

What Minimum Credit Score Do You Need to Buy a Car?

Roughly 68% of cars financed go to borrowers with scores of 661 or higher, but those with lower scores still have options.

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Edited by other Updated Jun 12, 2026 A first-quarter 2026 report by credit bureau Experian found that roughly 68% of cars financed were for borrowers with credit scores of 661 or higher. The report also found that on average, the credit score for a used-car loan was 682, while the average score for a new-car loan was 751. If you’re in the market for a car, it’s worth checking your score — and shopping around.

“A strong credit score can help you secure a better loan and interest rate, but the money you save may not be enough to offset the high price of cars today,” says NerdWallet’s auto loans expert, Shannon Bradley. “Average new car prices have remained around $50,000 for quite some time, with used cars at about $25,000.” If you’re in the market for a car, it’s worth checking your score — and shopping around.

“A strong credit score can help you secure a better loan and interest rate, but the money you save may not be enough to offset the high price of cars today,” says NerdWallet’s auto loans expert, Shannon Bradley. “Average new car prices have remained around $50,000 for quite some time, with used cars at about $25,000.” If you’re in the market for a car, it’s worth checking your score — and shopping around.

“A strong credit score can help you secure a better loan and interest rate, but the money you save may not be enough to offset the high price of cars today,” says NerdWallet’s auto loans expert, Shannon Bradley. “Average new car prices have remained around $50,000 for quite some time, with used cars at about $25,000.”

A majority of car buyers have a 661 score or higher

There isn’t one specific score that’s required to buy a car because lenders have different standards. However, the vast majority of borrowers have scores of 661 or higher. Borrowers with scores of 501 to 600 account for 13.94% of cars financed, while people with scores of 500 or below account for 1.81%, according to Experian. A lower credit score won’t necessarily keep you from securing a car loan, but it might raise your interest rate, leading to higher payments. “Regardless of your credit score, it’s always smart to think of how you can get a car you like for the best price and be able to finance less,” Bradley says. Patience and flexibility about make and model are key, she says. “Consider lower trims or last year’s model. Compare similar models from different manufacturers, since some are being affected by tariffs more than others. For new cars, check the automaker’s website for incentives.”

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Auto loan interest rates

Interest rates differ based on your credit score. Knowing what to expect can help you budget for your car. Usually, higher credit scores mean lower interest rates on loans. According to Experian, a target credit score of 661 or above should get you a new-car loan with an annual percentage rate of around 6.23% or better, or a used-car loan around 8.77% or lower. Credit score Average APR, new car Average APR, used car Superprime: 781-850 4.55% 6.30% Prime: 661-780 6.23% 8.77% Nonprime: 601-660 9.67% 14.03% Subprime: 501-600 13.44% 19.42% Deep subprime: 300-500 16.01% 21.77% Source: Experian Information Solutions, 1st quarter 2026. Based on VantageScore credit scoring model. Source: Experian Information Solutions, 1st quarter 2026. Based on VantageScore credit scoring model. Using a car loan calculator illustrates the difference that can make. For example, a higher credit score can save you thousands in interest. On a $20,000, five-year used-car loan, a borrower with score in the 700s might pay about $4,776 in interest — compared with roughly $11,406 for someone with a score in the 500s. That's more than double the cost. Plus, in most states, bad credit can mean higher car insurance rates, too. California, Hawaii and Massachusetts don't allow insurers to use credit when determining car insurance rates.

What is a good FICO Auto Score?

Your FICO Auto Score is a specialty score ranging from 250 to 900. Just like with traditional credit scores, higher scores get better terms. To calculate this score, FICO weighs past car-loan payments more heavily than the traditional score does. It also gives more weight to any repossessions or auto-loan bankruptcies you might have filed. To check your automotive score, you can buy a full set of FICO scores through myFICO.com.

How to buy a car with bad credit

If you are worried about getting approved, figure out what you can bring to the negotiating table.

Bring a bigger down payment

A big down payment can help offset a bad credit score by lowering your monthly payments. It might even help you get a lower interest rate. For some lenders, a big down payment might make you appear less risky, despite a lower credit score.

Bring documents showing financial stability

If your credit score is low, lenders may look at other signs to show your reliability. Bring documents like recent pay stubs and proof of address to show you have steady income and are making consistent housing payments.

Consider bringing your own financing

Dealerships offer financing, but it's smart to check with a bank or credit union, too. You can also compare car loan rates online. Once you choose a lender, getting preapproved can make the process smoother. Each application can cause a “hard pull” on your credit, so try to submit them close together when rate shopping. Why? Because the credit bureaus will typically group multiple inquiries together and count them as one. If you get a higher rate than you wanted, keep building your credit. After six to 12 months of on-time payments, you may be able to refinance your auto loan for a lower rate. » MORE: Best Auto Refinance Loans and Rates of 2026 » MORE: Best Auto Refinance Loans and Rates of 2026 If you still aren’t getting car loan rates that work for you, it might be time to delay your car purchase and work on building your credit.

Does buying a car help your credit?

Yes — if you manage the loan well. Here’s how: Payment history: An auto loan gives you another chance to show you pay bills on time. Payment history is the most important factor in your credit score. Payment history Credit mix: A car loan is an installment loan, with fixed monthly payments due over a set period of time. Adding this type of loan can help your score if you mostly have revolving credit, like credit cards. Lenders like to see a mix of both. Credit mix: » Ready to get started? Get a free credit score from NerdWallet today. » » Ready to get started? Ready to get started? Explore more on Article sources NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines. Experian Information Solutions. State of the Automotive Finance Market Q1 2026. Accessed Jun 12, 2026. About the authors Barroso Amanda Barroso, Ph.D., is a writer and content strategist helping consumers navigate budgeting, credit building and credit scoring. Before joining NerdWallet, Amanda wrote about demographic trends at the Pew Research Center and earned a Ph.D. from The Ohio State University. Her work has been featured by the Associated Press, Washington Post and Yahoo Finance. Published in Schwahn Lauren Schwahn is a writer at NerdWallet who covers credit scoring, debt, budgeting and money-saving strategies. She contributed to the "Millennial Money" column for The Associated Press and managed a team of writers producing content for the series. Her work has also been featured by USA Today, MSN, The Washington Post and more. Lauren has a bachelor’s degree in history from the University of California, Santa Cruz. She is based in San Francisco. Published in How to Get the Best Mortgage Rate Does Refinancing a Car Hurt Your Credit? Landlord Credit Check: What to Expect By Amanda Barroso, Claire Tsosie Why Employers Check Credit and What They See By Amanda Barroso Does Applying For a New Credit Card Hurt Your Credit? By Lauren Schwahn, Bev O'Shea What Credit Score Do You Need to Buy a House? By Abby Badach Doyle