Auto Credit
What Credit Score Do You Need for a Car Loan?
There's no official minimum score for an auto loan, but your score has a big impact on your rate. Here's what lenders look for.
You can get a car loan with almost any credit score, but that doesn't mean you'll get a good deal. Your credit score is one of the biggest factors in your auto loan interest rate, and a difference of just a few percentage points can add thousands of dollars to what you pay.
Is there a minimum credit score for a car loan?
No official minimum exists. Lenders set their own standards. In general:
- Prime (about 661+): access to competitive rates from banks and credit unions.
- Near-prime (about 601–660): approval is common, with higher rates.
- Subprime (about 501–600): approval is possible, often at much higher rates.
- Deep subprime (500 and below): limited options, often "buy here, pay here" dealers.
Lenders may use a FICO Auto Score
Many auto lenders use industry-specific FICO Auto Scores, which range from 250 to 900 and put extra weight on how you've handled past car loans. If you've paid auto loans on time, your auto score may be higher than your regular score; a past repossession will weigh more heavily.
How your score affects your rate
Auto loan rates rise sharply as scores fall. Borrowers in the top tiers often get rates several percentage points lower than subprime borrowers on the same car. On a $30,000 loan over five or six years, that difference can easily mean thousands of dollars in extra interest.
How to get a better auto loan rate
- Check your credit reports first and dispute errors. See how to read your credit report.
- Lower your credit card balances before applying. Read about credit utilization.
- Get preapproved by a bank or credit union before visiting the dealer, so you have a rate to compare.
- Rate shop within a short window. Multiple auto loan inquiries within about 14 to 45 days typically count as one.
- Make a bigger down payment to reduce the amount you borrow and the lender's risk.
- Choose a shorter term if you can afford the payment. Longer terms often carry higher rates.
Watch the payment trap
Dealers often focus on the monthly payment. A lower payment from a longer loan can cost much more overall. Compare the interest rate and total cost, not just the monthly amount.
Already have a high-rate loan?
If your credit has improved since you bought your car, refinancing could lower your rate. Many borrowers refinance after 6 to 12 months of on-time payments and a higher score.
Get your credit car-ready
30 Day Credit Pros helps clients find and dispute errors that may be holding their scores back before a big purchase. Request a free credit assessment, or see what counts as a good credit score.
Not sure which items on your reports are worth disputing? Our team will go over all three reports with you for free.
Get a Free Credit AssessmentFrequently asked questions
What is the minimum credit score for a car loan?
There's no official minimum. Lenders set their own standards, and borrowers with scores in the 500s can sometimes get approved at higher rates.
What credit score do you need for a good car loan rate?
Scores in the prime range, roughly 661 and above, usually qualify for competitive rates, with the best rates going to higher scores.
Does shopping for a car loan hurt my credit?
Multiple auto loan inquiries within a short window are typically counted as one inquiry for scoring.
What is a FICO Auto Score?
It's an industry-specific FICO score used by many auto lenders, ranging from 250 to 900, that emphasizes your history with auto loans.