What credit score do you need to buy a car?

Americans currently owe over $1.4 trillion in auto loans. Kevork Djansezian/Getty Images

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• A good credit score to buy a car is often above 660, as you're then considered a "prime" borrower.
• There's no industry-wide, official minimum credit score in order to qualify for an auto loan.
• Generally, the higher your credit score, the better terms you're likely to get on the loan.

Americans are borrowing more money than ever to buy cars.

The average loan amount, not including interest, topped $41,000 for a new car and just under $28,000 for a used car in the fourth quarter of 2022, according to credit-reporting agency Experian. In total, Americans owe over $1.417 trillion on their auto loans, up by 8.6% since this time last year. 

These numbers may be less shocking when you consider the barrier to entry isn't incredibly high. While a good FICO credit score to buy a car with a loan is usually above 660, according to Experian data, there's no industry-wide, official minimum. Over 30% of the $1.4 trillion in auto debt is held by borrowers with credit scores below 660. 

As with most other types of loans, the higher the borrower's credit score, the easier it is to get a loan. You'll also secure better loan terms. But it's still possible to get an auto loan with a traditionally low credit score.

What are the different credit score tiers you can fall into?

According to Experian's analysis of auto loans in the fourth quarter of 2022, borrowers who received financing for a new car had an average credit score of 738, while borrowers who received financing for a used car had an average credit score of 678.

In its analysis of auto loans, Experian separates current auto loan borrowers into five categories based on credit scores:

Borrowers in the subprime and deep subprime categories represent 15.6% of all borrowers in the auto-loan market, according to Experian. Meanwhile, borrowers in the top two categories, super prime and prime, represent 66.5% of all borrowers.

What is a good credit score to buy a car?

Generally, the higher the credit score, the lower the interest rate. According to Experian's fourth-quarter data, the average interest rates on new and used car loans for each category of borrower were as follows:

Some auto lenders may also require a cosigner for those with lower credit scores. A cosigner is somebody with established credit who legally agrees to take responsibility for paying back the loan if the primary borrower fails to do so.

What other credit scoring models do lenders use?

When deciding whether to extend a loan, auto lenders may use a specific FICO credit-scoring model called the FICO Auto Score. The FICO Auto Score is a variation on the general scoring model, designed specifically to predict the risk of a borrower defaulting on car payments. It ranges from 250 to 900, according to Experian.

While FICO remains the most widely used credit score across all types of borrowing, an auto lender may also look at your credit score from VantageScore, a relatively new credit scoring system developed by the three credit bureaus — Equifax, TransUnion, and Experian. 

Many auto lenders will consider more than a credit score, though. A borrower's debt-to-income ratio, complete credit history, and down payment amount will also affect the loan terms.

Auto credit score frequently asked questions (FAQ)