Financing

What Credit Score Do You Need to Buy a Car?

Your credit score is one of the most important factors in getting a good car loan rate. Here's exactly how it works in 2026.

Minimum Credit Score to Buy a Car

Technically, you can get a car loan with almost any credit score — but lenders charge dramatically different rates based on your score. With a score below 580, you may face rates of 15–25% APR. With a score above 720, you can expect rates as low as 5–7% APR.

Credit Score Tiers and Typical Rates (2026)

• 720+ (Excellent): 5–7% APR on new cars
• 680–719 (Good): 7–9% APR
• 640–679 (Fair): 9–12% APR
• 580–639 (Poor): 12–18% APR
• Below 580 (Very Poor): 18–25%+ APR

How to Check Your Credit Score

You can get your free credit score from AnnualCreditReport.com (federally mandated), your credit card issuer (most provide free FICO scores), or apps like Credit Karma or Experian.

How to Improve Your Credit Score Before Buying

If your score is below 680 and you can wait 6–12 months, these steps can meaningfully improve it:

• Pay all bills on time (payment history is 35% of your score)
• Pay down credit card balances to below 30% of the limit
• Don't open new credit accounts in the months before applying
• Dispute any errors on your credit report

Getting a Car Loan with Bad Credit

If you need a car now and your credit is poor, consider a larger down payment (reduces lender risk), a co-signer with good credit, or a less expensive vehicle. Avoid buy-here, pay-here dealerships which often charge predatory interest rates.