What Credit Score Do You Need for a Car Loan? (2026 Rates by Score)

There’s no single credit score you need for a car loan. Lenders set their own cutoffs, and plenty of people with scores in the 500s get approved. What your score really decides is your interest rate, and that gap is huge: in the second quarter of 2026, borrowers with the best credit paid an average of 4.41% on a new car, while subprime borrowers paid 13.52%.

So the useful question isn’t “Can I get a car loan with my score?” It’s “What will my score cost me, and how can I pay less?” This guide shows the average car loan rates by credit score, what lenders look at beyond the three-digit number, and the math on how much a better score saves.

What credit score do you need to get a car loan?

Auto lenders don’t publish one universal minimum. Experian, which tracks the auto finance market, says there’s no specific minimum credit score for a car loan; each lender sets its own rules and weighs things like the loan amount and your down payment.

In practice, here’s how scores tend to play out:

• 661 and up (prime and super prime): You’ll qualify with most banks, credit unions and captive lenders (the carmaker’s finance arm), and you’re in range for the best advertised rates and 0% promotions.
• 601–660 (near prime): Approval is usually doable, but expect rates several points higher than prime.
• 501–600 (subprime): You can often still get financed, typically through subprime lenders, some credit unions or dealer financing, at double-digit APRs.
• 500 or below (deep subprime): Options shrink. Expect high rates, larger down payment requirements and smaller loan amounts.

For context, the average credit score on a new-car loan was 751 in Q2 2026, and 688 on a used-car loan, according to Experian (VantageScore 4.0). If your score is below those numbers, you’re not out of luck. You’re just likely to pay more than the typical buyer.

Average car loan rates by credit score (2026)

The table below uses Experian’s State of the Automotive Finance Market data for Q2 2026. Score tiers are based on VantageScore 4.0.

Two patterns jump out. First, used-car loans cost more at every tier, because used vehicles are worth less as collateral and lose value less predictably. Second, the jump from near prime to subprime is steep, especially on used cars, where the average rate climbs past 19%.

Overall, Experian put the average new-car APR at 6.35% and the average used-car APR at 11.19% in Q2 2026. The average new-car loan was $43,610 over 69.5 months, with a $765 monthly payment. For current offers by lender type, see our guide to auto loan rates in 2026.

Note on score models: The tiers above use VantageScore. Many auto lenders pull a FICO Auto Score instead, an industry-specific version that ranges from 250 to 900 and puts extra weight on how you’ve handled past car loans. Your auto score can be higher or lower than the free score you see in your banking app.

How much your credit score really costs: a worked example

Let’s say you’re financing $30,000 on a new car for 60 months. Here’s what the average rate for each tier means in real dollars:

A deep-subprime borrower pays roughly $10,400 more in interest than a super-prime borrower for the exact same car. That’s the price of a decent used car on top of the new one.

Smaller jumps matter too. If you can push your score from the near-prime range into prime before you buy, your payment drops from about $633 to $582. That’s $51 a month, or about $3,064 over the life of the loan.

The same logic hits harder on used cars. On a $25,000, 60-month used-car loan, the average subprime rate (19.10%) costs about $13,993 in interest, compared with $4,202 at the super-prime rate (6.29%).

Run your own numbers with our auto loan calculator, which shows the monthly payment, total interest and a full amortization schedule.

Why a longer term doesn’t fix a high rate

Dealers often lower the monthly payment by stretching the term. At a 9.71% APR on $30,000, here’s the trade-off:

• 48 months: about $757/month, $6,322 total interest
• 60 months: about $633/month, $7,988 total interest
• 72 months: about $551/month, $9,701 total interest
• 84 months: about $494/month, $11,458 total interest

Going from 60 to 84 months saves about $140 a month but costs roughly $3,470 more in interest, and longer loans usually carry higher rates than this simplified example assumes. You also stay “underwater” (owing more than the car is worth) for longer.

What auto lenders look at besides your score

Your credit score opens the door, but lenders price the loan on the whole application. Expect them to review:

• Debt-to-income ratio (DTI): Your monthly debt payments divided by gross monthly income. A lower DTI signals you can handle the new payment. Check yours with our DTI calculator.
• Payment-to-income: Many lenders also look at how large the car payment is relative to your income on its own.
• Down payment and loan-to-value (LTV): Putting more money down lowers the lender’s risk and can offset a weaker score.
• Auto credit history: A past car loan paid on time helps, which is exactly what FICO Auto Scores emphasize. A past repossession hurts a lot.
• Income and job stability: Subprime lenders in particular may ask for pay stubs or proof of residence.
• The vehicle itself: Age, mileage and price affect both approval and rate.

How to get a car loan with fair or bad credit

If your score is under about 660, these moves can save you real money:

1. Get pre-approved before you shop

Apply with your bank or a credit union first. Credit unions often price auto loans more competitively for members with average credit. A pre-approval gives you a rate to beat, so the dealer’s finance office has to compete rather than set the terms.

2. Rate shop inside a short window

Each loan application triggers a hard inquiry, but scoring models treat multiple auto-loan inquiries within a short period (14 to 45 days, depending on the model) as a single inquiry. Do your comparison shopping in one or two weeks to be safe.

3. Put more money down

A down payment of 10% to 20% reduces the amount you borrow and can help you qualify at a better tier. It also protects you from owing more than the car is worth if it’s totaled or you need to sell.

4. Consider a co-signer carefully

A co-signer with strong credit can get you a lower rate, but they’re fully on the hook if you miss payments, and late payments hurt both credit reports. Only go this route if you’re confident in the budget.

5. Buy less car

A cheaper vehicle means a smaller loan, which makes approval easier and caps the damage of a high APR. Keep the total car payment comfortably inside your budget; our budgeting guide can help you set a limit.

6. Plan to refinance

If you have to accept a high rate now, make every payment on time for 6 to 12 months while improving your score, then shop for a refinance. Check first that your loan has no prepayment penalty; our article on paying off a loan early explains what to look for in the contract.

Watch out for “buy here, pay here” lots: These dealers finance in-house, often at very high rates, and some don’t report on-time payments to the credit bureaus, so the loan may not help you rebuild credit. Ask before you sign.

How to raise your credit score before buying a car

If you can wait a few months, even a modest score bump can move you into a cheaper tier. Focus on the moves with the fastest payoff:

• Pay down credit card balances. Credit utilization is one of the quickest factors to change. Getting your total balance well under 30% of your limits (lower is better) can lift your score within a billing cycle or two.
• Check your credit reports for errors. You can get free reports from all three bureaus at AnnualCreditReport.com. Dispute anything wrong, like a late payment that wasn’t late.
• Don’t open new accounts right before applying. New inquiries and new accounts can lower your score temporarily.
• Bring past-due accounts current. A recent late payment is far more damaging than an old one.

For a full plan, see our guide on how to improve your credit score, and avoid the habits in our list of credit card mistakes that drag scores down.

Common car-loan mistakes to avoid

• Shopping by monthly payment only. Always compare APR, term and total cost. A low payment can hide thousands in extra interest.
• Letting the dealer arrange financing without a benchmark. Dealers can mark up the rate a lender offers them. Your pre-approval keeps that in check.
• Rolling negative equity into a new loan. If you owe more on your trade-in than it’s worth, that balance gets added to the new loan, and you start underwater.
• Skipping the fine print on add-ons. Extended warranties, GAP coverage and other products can be financed into the loan. Some are useful, but compare prices and know you can decline them.
• Missing payments. Late auto payments damage your credit and can lead to repossession. Our guide on what happens if you stop paying a loan covers the timeline and your rights.

Tax tip for new-car buyers: For tax years 2025 through 2028, you may be able to deduct up to $10,000 a year of interest on a loan for a new, personal-use vehicle whose final assembly was in the U.S., whether or not you itemize. The deduction phases out above $100,000 of modified AGI ($200,000 for joint filers). Used cars and leases don’t qualify.

Before you visit a dealer, compare your options with our auto loan calculator and browse the rest of our free financial calculators.

Sources: Experian State of the Automotive Finance Market Q2 2026 (via Experian and Bankrate, September 2026), Experian guidance on auto loan credit scores (Sept. 10, 2026), and IRS/Thomson Reuters guidance on the 2025–2028 vehicle loan interest deduction. Rates are averages as of Q2 2026 and your offer will vary. This article is for educational purposes and isn’t financial advice.

Written by Chanchala

Founder & Lead Writer · B.Sc. Mathematics (Honors) · 9 years in banking & lending

Chanchala is the founder and lead writer of FinInfoBlog. She holds a B.Sc. in Mathematics (Honors) and has 9 years of experience in banking and lending. She writes plain-English guides on savings, CDs, loans, credit and personal finance for U.S. readers, and makes sure every example shows the math behind the money decision. How we research and fact-check.