What Credit Score Is Needed to Buy a Car?

A good credit score means that you will have more interest rate options. If your credit score is poor, you can either seek an alternative strategy or try to improve the score first.

What Credit Score Do You Need to Buy a Car?

In general, you can acquire prime financing from banks and credit unions if you have a credit score of 650 to 660. But the lower your score, the higher the interest rate.

You will get great financing arrangements if your credit score is anywhere from 680 to 700. And with a score of 720 to 750, you can expect the lowest interest rates.

People in the subprime category (650/660 range) can end up paying double-digit interest rates.

A Good Credit Score for Buying a Car

Your credit score doesn’t just determine whether or not your loan will be approved. It affects the interest rate you will be charged.

A low credit score shows that you are likely to default the loan. So the lender will ask for a high interest rate in an attempt to offset the risk.

This applies to used cars too. You may not pay as much but the interest rate will still be way too high than you would have paid with a high credit score.