What Credit Score Do You Need to Buy a Car?
4 Min Read | Last updated: February 20, 2026
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Explore some examples of credit scores needed to buy a car. Learn how lenders assess your credit history before approving a car loan.
At-A-Glance
- In general, a higher credit score is likely to get you a car loan with a lower interest rate and lower monthly payment.
- But you may be able to get a car loan even if you don’t have a good credit score.
If you’re looking to finance your next car purchase with an auto loan, you’re not alone. As car prices continue to rise, buyers are financing 80.27% of new passenger vehicles with a loan or lease—as well as 37.30% of used vehicles.1
What Is a Good Credit Score to Buy a Car?
The good news is, you may be able to get a car loan even if your credit score falls into (or even slightly below) one of the “poor” or “fair” ranges—approximately 500-600 (to learn more about the ranges, see “Credit Score Ranges: What is an Excellent, Good, or Poor Credit Score?”).
But in general, a higher credit score is likely to get you a lower interest rate—which could make a substantial difference to your monthly payments and how much you’ll pay altogether over the life of the loan.2
How Lenders Evaluate Your Credit Score When You Buy a Car
When you apply for a car loan, the lender will check your credit history and your credit score. It’s important to note that lenders use a variety of credit scoring models, which may affect your borrowing experience.3 For example, if a lender relies on the FICO Auto Score, which uses a scoring model specifically designed for auto loans, any past payment issues you've had with auto loans could make it more difficult to get approved, according to Experian.3 On the other hand, if you’ve made on-time car payments for 10 years, that could act in your favor.
Lenders may also look at other factors, such as your monthly debt payments relative to how much you earn. Those factors could improve your chances of getting a lower interest rate even if you have a less-than-perfect credit score.4
How Your Credit Score May Affect Car Loan Payments
Many people finance their car purchases whether it’s a new car or an old car.
New car loans.
The average sales price of a new car was $50,080 in September 2025.5 The average new car loan was a little over $41,983 in the second quarter of 2025.1 If you’re paying off that loan over five years, your credit score could significantly affect your monthly payments and how much you pay altogether over the life of the loan, as shown in the accompanying table.
Q2 2025 Average Credit Score Ranges, Amount Financed, and Monthly Payments for a New Car Loan
| Credit score | Average Amount Financed | Monthly payment |
|---|---|---|
| 781+ | $39,998 |
$728 |
| 661-780 | $44,415 |
$759 |
| 601-660 | $44,393 |
$795 |
| 501-600 | $39,564 |
$777 |
| 300-500 | $34,865 |
$741 |
Note: Average interest rates based on Experian data for Q2 20251
Used car loans.
American car buyers reportedly financed about 37% of used vehicles in the first quarter of 2025, with loans averaging a little over $26,795.1 The accompanying table shows how buyers’ credit scores translate into interest rates and monthly payments for paying off the average used-car loan.
Q2 2025 Average Credit Score Ranges, Amount Financed, and Monthly Payments for a Used Car Loan
| Credit score | Average Amount Financed | Monthly payment |
|---|---|---|
| 781+ | $28,828 |
$525 |
| 661-780 | $28,060 |
$519 |
| 601-660 | $25,676 |
$539 |
| 501-600 | $22,504 |
$547 |
| 300-500 | $20,464 |
$542 |
Note: Average interest rates based on Experian data for Q2 20251
Tactics for Reducing Your Monthly Payment
There are various ways to reduce monthly car loan payments, which may be worth exploring as costs continue to rise for both new and used cars. They include:
Build your credit score.
If your credit score is less than exceptional and you can afford to wait before buying a car, you can take steps to improve your credit score, which may get you a lower interest rate. If you can’t wait, you could buy now and consider trying to refinance at a lower rate when you’ve improved your credit score.
Make a bigger down payment.
A bigger down payment reduces your loan amount, which reduces your monthly payment (assuming all other factors are equal).6
Get a longer loan term.
Stretching out payments over a longer period reduces your monthly cost, although it also means you’ll pay more in interest over the length of the loan (assuming all other factors are equal).7
Shop around.
You may save money by researching different lenders and getting pre-approved before you buy a car.4
The Takeaway
You may not need great credit to buy a car, but a higher credit score is likely to get you a lower interest rate. That could make a significant difference to your payments each month and how much you’ll pay for the car altogether.
1 “Q2 2025 State of the Automotive Finance Market,” Experian
2 “What Is a Good Credit Score?,” Experian
3 “Which Credit Score Is Used for Car Loans?,” Experian
4 “How does a lender decide what interest rate to offer me on an auto loan?,” Consumer Financial Protection Bureau
5 “New Record: Average New Car Prices Surpasses $50,000,” Kelley Blue Book
6 “What is a loan-to-value ratio in an auto loan?,” Consumer Financial Protection Bureau
7 “Financing or Leasing a Car,” Federal Trade Commission
Mike Faden has covered business and technology issues for more than 30 years as a writer, consultant, and analyst for media brands, market-research firms, startups and established corporations.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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