March 28, 2026
What Is a Good Credit Score to Buy a Car in 2026?
What Credit Score Do You Need to Buy a Car?
There's no single credit score needed for an auto loan. Different lenders have different standards. However, a score of 661 or higher is generally considered "good" for auto financing and will get you competitive interest rates.
The higher your score, the less you'll pay in interest over the life of your loan. Even a small rate difference can mean saving hundreds or thousands of dollars. Understanding where you stand and what to expect can help you make a smarter buying decision.
Auto Loan Rates by Credit Score Tier
Here's a general breakdown of how credit scores translate to auto loan interest rates in 2026.
Super prime (781-850): These borrowers get the best rates, typically 4-5% APR for new cars and 5-6% for used cars. Lenders compete for these applicants.
Prime (661-780): This is the "good" range for auto loans. Expect rates around 5-7% for new cars and 7-9% for used cars. You'll have plenty of lender options.
Near prime (601-660): Rates jump to 8-12% for new cars and 11-15% for used cars. You can still get approved, but you're paying noticeably more.
Subprime (501-600): Rates range from 12-18% for new cars and 15-20% for used cars. Fewer lenders will work with you, and the terms are less favorable.
Deep subprime (300-500): If you can get approved, rates may exceed 20%. At this level, it's often better to build your credit first before financing.
Related: Is 650 a Good Credit Score for a Car Loan?
How Much Does Your Credit Score Actually Cost You?
Let's put real numbers to this. Say you're financing a $25,000 car over 60 months.
With a prime score and a 6% rate, your monthly payment would be about $483, and you'd pay roughly $3,975 in total interest. With a subprime score and a 15% rate, your monthly payment jumps to about $595, and total interest balloons to roughly $10,700.
That's nearly $7,000 more — just because of your credit score. For many buyers, spending a few months improving their score before purchasing could be one of the best financial decisions they make.
What Else Do Lenders Look at Besides Credit Score?
Your credit score is important, but it's not the only factor lenders consider.
Income and employment matter because lenders want to know you can afford the monthly payments. Most will ask for proof of income.
Debt-to-income ratio compares your monthly debt payments to your monthly income. A lower ratio makes you a stronger applicant.
Down payment reduces the amount you need to borrow and shows the lender you're financially committed. A larger down payment can sometimes offset a lower credit score.
Loan term affects your rate too. Shorter loans (36 or 48 months) often come with lower rates than longer loans (72 or 84 months), though the monthly payments will be higher.
How to Improve Your Credit Score Before Buying a Car
If your score is below 661 and the purchase isn't urgent, spending a few months building your credit can save you real money.
Pay all bills on time. This is the single most impactful thing you can do. Set up autopay on every account to avoid accidental late payments.
Lower your credit card balances. Credit utilization — the percentage of available credit you're using — heavily influences your score. Getting balances below 30% of your limit helps. Below 10% is even better.
Check your credit report for errors. Mistakes like accounts that aren't yours or incorrect late payment records can drag your score down. Dispute negative items on your credit report that don't look right.
Avoid new credit applications. Each hard inquiry temporarily lowers your score. Hold off on applying for new credit cards or loans in the months leading up to your auto loan application.
Use a credit builder card or account. The Self Visa® Credit Card reports to all three bureaus monthly with no hard pull to apply. Self also offers a credit builder loan for added tradeline diversity. Kikoff is a $0/month credit account that also reports to all three bureaus — read our Kikoff review to learn more. Even a few months of on-time payments can meaningfully improve your score.
Self Visa® Credit Card
Start the path to financial freedom.
Fee
$25 (Intro annual fee for new customers (first year): $0)
APR
27.49%
Minimum Deposit Amount
$100
Credit Check
No
Cashback
N/A
Benefit
High approval rates
Kikoff Credit Account
Everything you need to build your credit, right in one app. Build credit, lower debt, and unlock progress with tools that actually work.
Loan Amount
$750-$3,500 depends on the plan
Term
12 months
APR
0%
Admin Fee
$0
Monthly Fee
$5/month for Basic plan, $20/mo for Premium plan $35/mo for Ultimate plan
Credit Check
No
Average Score Increase
An avg increase of +86 points within a year with on-time payments
Getting a Car Loan With Bad Credit
If you need a car now and can't wait to build your credit, you still have options.
Credit unions often offer better rates than banks or dealership financing for borrowers with lower scores. A co-signer with good credit can help you access better terms. Making a larger down payment reduces the lender's risk and may help you qualify.
Just avoid "buy here, pay here" lots if you can. Their rates are typically very high, and many don't report to credit bureaus, so the loan doesn't even build your credit.
The Bottom Line
A credit score of 661 or above puts you in a good position for car financing. Below that, you'll pay significantly more in interest. If you have time before your purchase, building your credit even by 30 to 50 points can translate to meaningful savings.
Start building or improving your credit today with Self or Kikoff, so when it's time to buy, you get the rate you deserve.
Frequently Asked Questions
What credit score do you need to buy a car? There is no universal minimum, but a score of 661 or above is generally considered good for auto financing. Scores below 500 may still qualify through subprime lenders, but at very high interest rates.
What credit score gets the best car loan rates? Borrowers with scores of 750 and above (super prime) typically receive the lowest auto loan rates, often 4-5% APR for new cars. These borrowers get the most competitive offers from the widest range of lenders.
Can I get a car loan with a 600 credit score? Yes. Lenders do approve car loans for scores around 600, but expect rates in the 8-15% APR range, which significantly increases your total interest cost. A larger down payment can help offset a lower score.
How long should I wait to buy a car to improve my credit? Even 3 to 6 months of consistent credit improvement can meaningfully lower your rate. Using a Self credit builder account or Kikoff and making on-time payments before applying could save thousands in interest over the loan term.
Does getting a car loan hurt your credit score? Applying creates a hard inquiry that may temporarily lower your score by a few points. However, if you rate-shop within a 14-to-45-day window, multiple auto loan inquiries are typically counted as just one.
Firstcard Educational Content Team - March 28, 2026
