What credit score is needed to buy a car?

Nearly 82% of new car buyers took out a loan or lease in 2025, according to Experian, as did more than 35% of used car buyers. Your credit score significantly impacts whether you'll get approved for a loan and what rate you'll be offered.

But lenders calculate credit scores for auto loans differently than they do for a credit card, mortgage or personal loan. Knowing how your score is determined and what number to aim for will make the car-buying process a lot less painful.

Lenders can choose either FICO® or VantageScore® to evaluate car loan applicants. The most common choice is the industry-specific FICO Auto Score 8, which ranges from 250 to 900 (compared to 300 to 850 for the base FICO Score). 

Industry-specific scores are optimized for certain products — the Auto Score, for example, factors your past history with car payments more. When you apply, ask the lender which credit scoring system they use.

You can check your FICO Auto Score using MyFICO, which has both free and paid tiers.

There are other free online resources for credit scores that are less focused on auto financing but can still provide a baseline for understanding the interest rate you may qualify for.

There are different ways to organize credit scores. Experian uses five categories:

• Super prime: 781 to 850
• Prime: 661 to 780
• Nonprime: 601 to 660
• Subprime: 501 to 600
• Deep subprime: 300 to 500

There is no universal score that all lenders use when reviewing applicants. You can get financing with subprime credit, but you'll likely have very high interest rates.

Anything above a 660 (prime) is usually good enough for reasonable interest rates. According to an Experian report, 70% of borrowers fell into this range. The report also found that the average score for financing a new car was 754, and for a used car, 691.

Using December 2025 data in the myFICO loan calculator, someone with a 770 who takes out a $40,000 loan with a 60-month term would receive an average APR of 6.56%.

That works out to a monthly payment of $784, with $7,030 in interest over the life of the loan.

A borrower with a score between 580, however, would be hit with an average APR of 16.689% and pay $987 per month, with $19,246 in total interest. 

If they raised their credit score by 40 points before applying, they would save more than $5,200 over the life of their loan.

You can still get an auto loan with bad credit, but your rate will be higher, especially if you fall into the subprime or deep subprime range.

If you have less-than-stellar credit, here are some tips for getting approved: 

Shop around

Compare rates across lenders to find the lowest rate and best terms. Don’t forget to account for administrative or origination fees, which can vary by lender.

Capital One Auto Finance is a good choice if you have less-than-stellar credit, with competitive rates and an Auto Navigator tool that lets you shop for cars and prequalify without a hard pull on your credit.

Look for subprime or second-chance car loans

If you are not having success getting traditional financing through a dealer or a bank, you can try a subprime lender that specializes in financing for buyers with spotty credit. 

“Buy here, pay here” lots offer second-chance car loans — or you can try an online marketplace like Autopay, to shop for subprime car loans. In either case, your rate and fees will likely be significantly higher since these loans are considered riskier by lenders.

Get a co-signer

A co-signer agrees to be legally responsible for the debt if the primary borrower fails to make payments. If your co-signer has a good credit score, it can make it easier to get approved for a loan with a lower interest rate.

Keep in mind that not all lenders accept co-signers, so you may need to shop around to find one. And make sure your co-signer understands the obligation they're agreeing to.

If your credit score isn't high enough for a good interest rate, there are ways to improve it.

Pay your bills on time. Your payment history is extremely important to your credit score, as it makes up 35% of FICO’s overall calculation. Every on-time payment helps improve your credit score, especially if you pay your balance in full.

Keep your credit utilization down. The amount of available credit you're using makes up 30% of your FICO score. If you're using $5,000 of your $10,000 credit limit, your credit utilization ratio is 50%. Lenders typically want to see a rate of 30% or less.

Keep your oldest credit card open. The age of your credit history makes up 15% of your FICO score. Keeping your oldest cards open increases the average age of your accounts and helps raise your credit score. At the same time, try to avoid opening new accounts, which can lower the average age of your accounts.

Become an authorized user. If you have a family member or friend who has good credit and is willing to add you to one of their credit card accounts, it can help you build credit and boost your score. .

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every car loan article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of car loans. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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