What credit score do I need to buy a used car?
Score ranges and what to expect
Credit scores typically range from 300 to 850. Generally, a score of 700 or higher is considered good and will get you the best rates. Scores between 600 and 699 are often approved but at higher interest rates. Below 600, you may be considered subprime, and some lenders will decline you or require a substantial down payment.
Keep in mind that lenders also look at your overall credit profile, including payment history, debt-to-income ratio, and length of credit history. A single score isn't the only factor. Some lenders specialize in bad-credit auto loans, but those come with very high rates—sometimes 20% or more.
- 720+: best rates, likely approval
- 660–719: good rates, easy approval
- 600–659: higher rates, may need down payment
- Below 600: limited options, consider cosigner
How to improve your chances
If your score is lower than you'd like, you can take steps to improve it before applying. Pay down credit card balances, avoid opening new accounts, and check your credit report for errors. Even a few months of on-time payments can make a difference.
A larger down payment reduces the lender's risk and can help you qualify even with a lower score. Adding a cosigner with good credit can also get you approved at a better rate. Just remember that the cosigner is equally responsible for the loan.
- Check credit reports for errors
- Pay down existing debts
- Save for a larger down payment
- Consider a cosigner
Common mistakes
- Assuming you need perfect credit to get a car loan—many lenders work with a range of scores.
- Not checking your credit score before applying, which can lead to surprises and multiple hard inquiries.
- Accepting the first loan offer without comparing rates from multiple lenders.
