What Credit Score Do I Need to Buy a Car?
There is no universal minimum credit score required to buy a car. Buyers with excellent, fair, poor, or limited credit histories may qualify for financing, but their interest rate, down payment, loan amount, and available terms can vary. Lenders also consider income, existing debt, employment history, down payment, and the vehicle being purchased, not just the applicant’s credit score.
Credit Score Categories
| Credit Score | General Category | What to Expect |
|---|---|---|
| 781-850 | Super Prime | Strongest rates and financing option |
| 661-780 | Prime | Competitive rates and broad vehicle selection |
| 601-660 | Near Prime | Financing may be available at higher rate |
| 501-600 | Subprime | Higher rates or a large down payment may be required |
| 300-500 | Deep Subprime | Approval is challenging, but some options may exist |
How Does Your Credit Score Affect Car Loan Approval?
Interest Rate: Higher scores generally help borrowers qualify for lower rates and more favorable terms. Current Experian data shows substantial differences in average auto-loan APRs among credit tiers.
Monthly Payment: Credit can affect the payment through the interest rate, but the vehicle price, loan term, taxes, fees, down payment and trade-in value are also important.
Down Payment: A lender may ask a shopper with limited or challenged credit to contribute more money upfront.
Loan Approval and Amount: Credit can influence whether the shopper qualifies and how much the lender is willing to finance.
What Else Do Auto Lenders Consider?
Lenders take several factors into account for approval, including:
- Monthly and annual income
- Employment and job history
- Debit-to-income ratio
- Housing expenses
- Down Payment
- Trade-in Equity
- Previous auto-loan history
- Vehicle age, mileage, and value
- Requested loan term
- Co-Buyer Information
How to Improve Your Chances of Getting Approved
- Review credit reports for inaccurate information.
- Make current payments on time.
- Reduce credit-card balances when possible.
- Save for a down payment.
- Gather recent proof of income and residence.
- Choose a vehicle that comfortably fits the budget.
- Consider a qualified co-borrower.
- Compare the APR, term and total loan cost.
Documents Needed for Credit Approval
Be prepared for financing by bringing a valid driver’s license, proof of income, proof of residence, proof of insurance, down payment information, trade-in title or payoff, and co-buyer information.
Frequently Asked Credit Score Questions
Is 600 a good enough credit score for a car loan?
A 600 score does not automatically prevent someone from financing a vehicle. However, shoppers may receive a higher APR, need more money down, qualify for a smaller loan, or need to select a more affordable vehicle.
Can I buy a car with no credit history?
Having no credit is different than having bad credit. Lenders may place greater emphasis on income, employment, housing history, down payment, and having a co-buyer. We have first-time buyer programs available!
Will applying for a car loan hurt my credit score?
There is a difference between prequalification and full credit applications. Shopping for a car loan typically has little to no lasting impact compared on credit scores.
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| Monday | 7:30AM - 5:00PM |
| Tuesday | 7:30AM - 5:00PM |
| Wednesday | 7:30AM - 5:00PM |
| Thursday | 7:30AM - 5:00PM |
| Friday | 7:30AM - 5:00PM |
| Saturday | 8:00AM - 4:30PM |
| Sunday | Closed |
| We will be closed Sunday April 5th for Easter. | |