What credit score matters most when buying a car?
Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 71% of vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian. Meanwhile, low-credit borrowers with scores of 600 or lower account for only 14% of auto loans.
There isn't one specific score that's required to buy a car because lenders have different standards. However, the vast majority of borrowers have scores of 661 or higher.
Quick Answer. While it's possible to get an auto loan with nearly any credit score, most lenders are looking for buyers in the prime credit score range with a credit score of 661 or above for the best terms and rates. There's no minimum credit score required to get an auto loan.
| Lender | APR | Minimum credit score |
|---|---|---|
| LightStream | 6.99%-25.29% (with autopay) | 695 |
| Upgrade | 7.99%-35.99% | 580 |
| SoFi | 8.99%-29.49% | No requirement |
| Upstart | 6.70%-35.99% | No Requirement |
Auto lenders use a special reporting system called FICO® Auto Score when determining the creditworthiness of a potential customer. The three credit reporting bureaus that contribute information to your FICO® Auto Score are TransUnion®, Equifax® and Experian™.
Your FICO score is a representation of your credit worthiness. FICO offers specific products and solutions for car dealers and auto loans. Their product is called Auto Score 8. As you can see here from FICO's promotional materials, Auto Score 8 is meant to help dealers, “Improve accuracy and speed of decision making.
A credit score of 900 is not possible, but older scoring models that are no longer used once went up to 900 or higher. The highest possible credit score you can acheive now is 850.
Read our editorial guidelines here. Most approved borrowers have credit scores of 661 or higher, but there is no set score to get an auto loan. Having a credit score below 660 could make it harder and more expensive — though not impossible — to finance your car.
Credit score: In general, you will need to have good to excellent credit, a FICO score of 680 or higher, to qualify. An excellent credit score paired with a high income will likely give you the fastest path to approval. Income: Lenders may set specific income requirements for you to qualify.
For a $250,000 home, you'll likely need a fair to good credit score: 740+: Best rates and terms. 680-739: Good rates, still very good affordability. 620-679: Higher rates, may require larger down payment or FHA loan.
What credit score is needed to buy a car with no money down?
What credit score is needed for zero down on a car? Every lender sets its own requirements for zero-down-payment deals, if they offer them at all. Generally, the credit score needed to buy a car is at least 661 whether you make a down payment or not.
Good FICO Auto Scores for Auto Loan Qualification
Lenders typically prefer borrowers with a credit score of 661 or higher. In addition to qualifying you for a loan, your FICO auto score can influence the interest rates that lenders offer you. A higher credit score will usually translate into a lower interest rate.
What credit score do auto lenders look at? The three major credit bureaus are Experian, TransUnion and Equifax. The two big credit scoring models used by auto lenders are FICO® Auto Score and Vantage. We're going to take at look at FICO® since it has long been the auto industry standard.
Most experts recommend a 20% down payment for new cars and 10% for used. Getting pre-approval might provide clarity on potential interest rates. Pre-approved auto loans can provide insight into the potential interest rate your lender will be able to offer.
CarMax Auto Finance
There's no minimum score requirement as CarMax's wide range of financing sources allows them to work with customers with different credit profiles. You can use the retailer's prequalification tool to get personalized terms, such as APR and monthly payments, with no impact on your credit.
- Pay your bills on time. ...
- Keep your balances and overall credit card debt low. ...
- Be cautious about new credit applications. ...
- Use a combination of credit types. ...
- Aim for a longer credit history. ...
- Check your credit report regularly. ...
- Dispute any credit report errors you find.
Aside from your usual information, car dealerships will also obtain information such as any previous loan defaults or repossession, late payments, signs of bankruptcy, and history of credit repair. This information will help your dealership decide how to approach your car financing application.
With multiple options available, you may be wondering which of these sources is the most accurate. Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.
Paying all of your bills on time could pay off in the form of a better credit score. Your payment history is the most important factor in calculating your credit score, representing 35% of your FICO® Score☉ . If your score is suffering due to late payments, begin by paying any past-due bills.
What it means to have a credit score of 800. A credit score of 800 means you have an exceptional credit score, according to Experian. According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.
Can I get $50,000 with a 700 credit score?
A 700 credit score can help you in securing a Rs 50,000 Personal Loan with many benefits, such as: Lower interest rates. Higher loan amounts. Faster approval process.
What is the average credit score? The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of February 2025.
Example: A six year fixed-rate loan for a $25,000 new car, with 20% down, requires a $20,000 loan. Based on a simple interest rate of 3.4% and a loan fee of $200, this loan would have 72 monthly payments of $310.54 each and an annual percentage rate (APR) of 3.74%.
What credit scores do auto lenders use? Auto loan lenders generally check an applicant's FICO Auto Score, which ranges from 250 to 900, or their VantageScore, which ranges from 300 to 800.
If you have a less-than-stellar credit score, dealerships, credit unions, or online lenders will probably work best. You might have to pay more in interest, but it's better to qualify for these offers than none at all. Those with better credit tend to get the best auto loan rates from banks.
