What Credit Score Do You Really Need for a Car Loan?

Shopping for a new (or new-to-you) car can be exciting—until you start thinking about the loan. One of the first questions people ask is, “What credit score do I need to get approved?” The truth is, there’s no one-size-fits-all answer. Your credit score does affect your chances of approval and the interest rate you’ll get—but lenders look at more than just a number.

In this post, we’ll break down what different credit scores mean for car loans, what to expect at each level, and how you can improve your chances of getting a better deal.

What’s Considered a “Good” Credit Score?

In general, credit scores range from 300 to 850. Most lenders use the FICO score, which breaks down like this:

• 300–579: Poor
• 580–669: Fair
• 670–739: Good
• 740–799: Very Good
• 800–850: Excellent

To qualify for most auto loans, you’ll usually need a score of at least 660–670. That doesn’t mean you can’t get a car loan with a lower score, but you’ll likely face higher interest rates or need a larger down payment.

Can You Get a Car Loan With Bad Credit?

Yes, but it might cost more. Lenders often approve loans for people with scores in the 500s or even lower, especially if you’re buying from a dealership that specializes in “subprime” loans. However, you may face:

• Higher interest rates (sometimes 15% or more)
• Shorter loan terms
• Larger down payment requirements
• Fewer vehicle choices

Still, a car loan can be a chance to rebuild your credit—if you make your payments on time. Just be careful not to get locked into a loan you can’t afford.

What Score Do You Need for 0% Financing?

You’ve probably seen car ads with offers like “0% APR for 60 months.” Sounds great, right? But here’s the catch: Only buyers with excellent credit usually qualify. In most cases, that means a score of 720 or higher.

Even if you’re close to that number, dealers might still push you into a higher-interest loan unless you negotiate or shop around. Always check your credit score before applying and ask what rate you qualify for—not just the one in the ad.

Average Interest Rates by Credit Score

According to Experian’s auto loan data, here’s what borrowers typically pay for a new car loan:

• Super Prime (781–850): ~4.5%
• Prime (661–780): ~6.5%
• Nonprime (601–660): ~9.8%
• Subprime (501–600): ~12.9%
• Deep Subprime (300–500): ~14%+

Used car loans often come with slightly higher rates, especially for lower credit tiers.

So if you’re wondering whether it’s worth working on your credit score before buying a car—the answer is usually yes.

How to Check (and Improve) Your Credit Score

Before you apply for an auto loan, it’s a good idea to check your score. You can get it for free through:

• Your credit card provider
• Credit monitoring services (like Credit Karma or Experian)
• AnnualCreditReport.com (offers free reports from all three bureaus)

If your score is lower than you’d like, here are a few steps that might help:

• Pay all bills on time
• Pay down credit card balances
• Avoid opening new credit lines before applying
• Dispute any errors on your report

Even a 30-point bump in your score could save you hundreds—or even thousands—over the life of your loan.

Down Payments Can Help at Any Score

Even if your credit isn’t perfect, putting more money down can improve your loan terms. A down payment reduces the amount you need to borrow, which lowers the lender’s risk. That can lead to:

• Lower monthly payments
• Better interest rates
• A higher chance of getting approved

If you can put down at least 10–20%, you’ll likely have more leverage in the loan process.

Consider Getting Preapproved Instead of waiting until you’re sitting in a dealership office, consider getting preapproved by a credit union, bank, or online lender. Preapproval gives you:

• A clear idea of what rate you qualify for
• More negotiating power with dealers
• Protection from “loan markups” some dealers add

You don’t need perfect credit to get preapproved—but it can help you avoid surprises and feel more confident in your budget.

Don’t Forget to Compare Offers

Even if your score is solid, don’t take the first loan offer you get. Different lenders have different criteria, and rates can vary widely—even for the same credit score. Take time to:

• Compare at least 3 loan offers
• Look at total cost, not just monthly payments
• Watch for extra fees or add-ons

A little shopping around can save you a lot in the long run.

Final Thoughts

So, what credit score do you really need for a car loan? The short answer: It depends. While a score above 670 puts you in a good position, people with lower scores still have options—just with more trade-offs. Whatever your score, being prepared, asking questions, and understanding your terms can help you make a smarter financial decision.

Ready to hit the road? Make sure your loan is as solid as your ride.