Understanding what Credit Score you need to buy a car helps set expectations around your financing options and likely loan terms. This page explores current benchmarks, the underlying models, and official steps to check and manage your credit before applying for an auto loan.
What the Score Measures & Who It Affects
Credit scores, such as FICO and VantageScore, estimate the likelihood that a borrower will repay debts on time—key in auto financing decisions.
Auto lenders, banks, credit unions, and sometimes dealerships use these scores to determine loan eligibility and set interest rates. Requirements vary by lender and country.
Other stakeholders, like insurers, may consider related data when pricing auto insurance in some regions.
Score Model & Range Basics
Attribute
Details
Model
FICO Score (commonly used by auto lenders), VantageScore; some lenders use custom or industry-specific variants (sample/illustrative where unspecified).
Score Range
FICO and VantageScore typically use 300–850; a higher score signals lower risk. Lender “cutoffs” for auto loans vary—see interpretation below.
Data Sources
Information from credit bureaus (e.g., Experian, Equifax, TransUnion): loan/credit card histories, payments, balances, some public records.
Update Frequency
Updated as lenders report new data—usually monthly, but can vary. Immediate updates not guaranteed.
Access
Check scores and reports via official bureau portals, lender programs, or model developer sites. For U.S. consumers: Annual Credit Report Program.
Key Factors & Typical Influence
Lenders assess payment history, credit utilization, length of credit history, recent credit inquiries, and the diversity of credit accounts (“credit mix”).
Weights below are “sample/illustrative”—specific influence varies by scoring model and version.
Factor
How It’s Assessed
Typical Influence
Payment History
Late payments, delinquencies, repossessions, collections, bankruptcies.
High (sample/illustrative)
Credit Utilization
Total and per-card revolving balances relative to limits.
High (sample/illustrative)
Length of Credit History
Average and oldest account age, age of newest account.
Medium (sample/illustrative)
New Credit & Inquiries
Recent openings and hard inquiries for new loans.
Low–Medium (sample/illustrative)
Credit Mix
Presence of both installment (like auto loans) and revolving (like credit cards) accounts.
Low–Medium (sample/illustrative)
Score Bands & Interpretation
Most lenders group scores into “bands.” These example ranges are “sample/illustrative”; individual lenders may set different thresholds for auto loans.
From current data (2025), borrowers with “Good” or above (e.g., scores above 670) generally qualify for better rates. The average credit score of approved auto borrowers in recent years: ~721 for new cars, ~657 for used—though loans are still possible below those levels, often with different terms.
Band (sample/illustrative)
Range
Typical Implications (Not Guarantees)
Poor
300–579
Limited loan options; typically highest rates or larger down payments required.
Fair
580–669
More lender options emerge; still higher-than-average interest rates likely.
Good
670–739
Majority of borrowers for new and used cars; eligible for most standard loan options and moderate rates.
Very Good
740–799
Broader access; lower rates and better terms from most mainstream lenders.
Excellent
800–850
Top-tier offers and the very lowest rates; special promotional deals more likely.
What Affects the Score (and What Doesn’t)
Major factors impacting scores: on-time loan/credit payments, low balances relative to limits (utilization), age of accounts, derogatory marks, and recent hard loan applications.
Not direct factors: income, job type, residence, or assets like checking account balances. Lenders may still consider these separately when reviewing your application.
Hard vs Soft Inquiries
Hard inquiries occur when you formally apply for credit (including auto loans), and may affect your score—often a small, temporary drop.
Soft inquiries, like checking your own score or pre-qualifications, do not impact scores.
Some scoring models group multiple auto loan hard inquiries made within a set “rate-shopping” window (often 14–45 days) as a single event to minimize negative impact. Always check specific model policies for your market.
How to Check Your Score & Report (Official Channels)
Obtain your credit report and score directly from official bureau portals (e.g., Experian, Equifax, TransUnion).
Credit report: lists credit account history and status. Credit score: a numerical summary calculated from that report. Review both before applying for a car loan.
Error Resolution & Disputes
Request your official credit report via the appropriate bureau or regulator-endorsed site.
Identify any errors with transaction dates, account numbers, or payment statuses.
Dispute inaccuracies directly through bureau processes—attach supporting documentation. Allow review time per market laws or bureau policy; decisions vary.
Model Variants & Regional Differences
FICO and VantageScore update models regularly; auto lenders may use “Auto Score” versions that weigh auto loan history more heavily.
Score range interpretation and lender approval criteria differ by country, local laws, and market norms.
Lenders sometimes employ proprietary scoring models in addition to standard bureau scores.
Comparisons
FICO vs VantageScore vs Regional Scores
Aspect
FICO
VantageScore
Regional (sample/illustrative)
Common Range
300–850
300–850
Varies by local model (sample/illustrative)
Primary Factors
Payment history, utilization, new credit, account age, mix
Similar to FICO; recent behavior may have more weight
Depends on national bureau/method
Inquiry Treatment
Auto loan inquiries grouped for rate shopping
Similar, but window/duration may differ
Policy varies by local model
Official Access
Bureau portals, model developer
Bureau portals, model developer
Bureau(s) or national portals
Responsible Practices
Consistently pay all loans and credit accounts by the deadline to protect your credit profile.
Keep credit utilization low (balances well under credit limits).
Avoid applying for multiple new credit accounts or loans right before seeking an auto loan if possible (minimizes new hard inquiries).
Always verify loan and score requirements with the lender and review your official score and report before applying.
Frequently Asked Questions
What credit score do I need to buy a car?
There is no fixed minimum—each lender sets its own criteria.
Scores above 670 are often considered “good” for standard auto loans. Some lenders approve applications at lower scores with higher interest rates or larger down payments.
The average new car loan borrower had a score of 721 in recent years; for used cars, about 657 (sample/illustrative).
Will I get a better interest rate with a higher credit score?
Generally yes—higher scores are linked to lower interest rates and broader lender options.
Borrowers above 780 typically qualify for the most competitive auto rates.
Actual offers depend on complete application review, not just score.
How can I improve my chances before applying for an auto loan?
Check your official report and score directly before applying.
Pay all bills on time and try to lower outstanding debt balances.
Resolve errors by disputing any incorrect negative marks with the relevant credit bureau’s official process.
Conclusion & Next Steps
Know that while lenders’ credit score requirements for car loans vary, a higher score generally unlocks better rates and more choices, but you may still qualify with lower scores depending on the lender and terms.
Always verify your current credit standing using official bureau resources or regulator-endorsed programs before making financing decisions.
If you want further details on official processes or report access, visit individual bureau websites or their regulator-backed portals for the most current information.
