What is a Decent Credit Score to Buy a Car?

Your credit score is often the only thing standing between you and the keys to a new ride. If you are looking to buy a car, you are likely wondering: what is a decent credit score to buy a car without paying a fortune in interest?

While you can technically get a car loan with almost any credit score, the “decent” range usually starts around 670. In this guide, I will break down how your three-digit number dictates your monthly car loan payment and your total loan cost.

I found that having a score in the “Prime” category, typically 661 to 780, unlocks much better rates. If your credit score sits below 600, you might face “Subprime” rates that can double the amount of interest you pay over time.

It is important to remember that a higher credit score does more than just get you a car loan approval. It gives you the power to negotiate and ensures you aren’t stuck with a predatory loan that hurts your wallet for years.

Follow along as I explain the different credit tiers and how to prep your credit before you visit the dealership. Ready to find out if your score is high enough to snag a great auto loan deal?

What is a Decent Credit Score to Buy a Car?

In 2026, a decent credit score to buy a car with favorable terms is generally 670 or higher.

This credit score will put you in the Prime category, where most lenders are comfortable approving car loans.

In the current market, the average credit score for a new car loan is approximately 753, while the average for used car buyers is around 689.

While you can secure an auto loan with a credit score lower than 670, you’ll face “subprime” interest rates, often exceeding 13-19%.

Having a credit score of about 670 will ensure more favorable interest rates and significantly lower monthly payments.

Can I Get a Car with a 650 Credit Score?

A credit score of 650 puts you in the “Fair” or “Near-Prime” category.

You are a very strong candidate for a car loan, though you won’t qualify for the rock-bottom interest rates reserved for “Super-Prime” borrowers.

In 2026, you can expect an APR of around 9.5% to 11% for a new car and roughly 14% for a used one.

Most traditional lenders and credit unions will approve you without much hassle, but having a small down payment of 10% can help secure even better terms and lower your monthly commitment significantly.

Also Read: Can You Get a Mortgage with a 650 Credit Score

Can I Get a Car with a 600 Credit Score?

Yes, but you are entering the “Subprime” territory.

With a credit score of 600, many major banks might hesitate, so your best bet is a credit union or a specialized subprime lender.

Expect interest rates to jump to approximately 12% to 13% for new cars and up to 19% for used ones.

Lenders will likely look beyond your credit score at your debt-to-income ratio and employment stability.

You will almost certainly be required to provide proof of income (pay stubs) and a steady residence, and a down payment will likely be mandatory for approval.

Can I Get a Car with a 500 Credit Score?

Car loan approval is possible at 500, but it falls into the “Deep Subprime” range.

Getting traditional car financing will be difficult, so you will likely need to work with “Buy Here, Pay Here” dealerships or subprime specialists.

Also, interest rates can be staggering, often exceeding 15% for new and 21% for used cars. At this level, the loan’s total cost can nearly double the car’s sticker price over time.

To get a car loan approved, you should prepare a substantial down payment (at least 20%) and expect to have a GPS tracker or starter-interrupt device installed in the vehicle by the lender.

Can I Get a Car with a 400 Credit Score?

Getting a car loan with a credit score of 400 is extremely difficult, but not impossible.

You will not qualify for traditional bank financing. So, your primary options are “Buy Here, Pay Here” lots, which focus more on your current income and down payment than your past credit mistakes.

Expect the maximum legal interest rate in your state (often 20% to 30%).

Also, to succeed, you’ll need a large cash down payment, sometimes 30% to 50% of the car’s value, to offset the lender’s risk.

In 2026, many experts suggest finding a co-signer to avoid these predatory rates.

Can I Get a Car with a Very Poor Credit Score?

Getting a car loan with a very poor credit score (typically below 500) is challenging but possible through specific high-risk lending channels.

Traditional banks and credit unions will likely deny your car loan application, so you will need to target “Subprime” lenders or “Buy Here, Pay Here” dealerships.

These sellers focus more on your current monthly income and employment stability than your credit history.

However, the cost of borrowing will be extreme. In 2026, interest rates for deep subprime loans range from 20% to 30%, which can double the total cost of the vehicle over the life of the loan.

To improve your chances, prepare a down payment of at least 20% and bring a co-signer with stronger credit to lower the lender’s risk.

Struggling with a low credit score?

Download the Credit Sidekick app now that enables you to improve, monitor, and boost your credit score with ease.

Why Car Loans are Different from Mortgages?

You might have noticed that it’s easier to get a car loan with a 600 score than it is to get a mortgage with that same score. Why? It comes down to collateral and recovery.

If you stop paying your mortgage, it takes months, sometimes years, of legal battles for a bank to foreclose on a house.

If you stop paying your car loan, a tow truck can repossess the asset in a single night. Because the “risk of loss” is lower for the lender, they are often more lenient with lower credit scores.

However, “lenient” doesn’t mean “cheap.” A lower credit score simply means you pay for that leniency through higher interest.

Impact of Your Credit Score on Monthly Car Loan Payments

To understand why a “decent” credit score matters to buy a car, you have to look at the math.

In 2026, the average price of a new car in the US is roughly $50,000. Let’s look at how your credit score impacts a 60-month (5-year) car loan for that amount:

The Insight: A borrower with a 620 credit score (Non-Prime) pays $128 more every single month than someone with an 800 credit score (Super-Prime). Over the 5-year life of the loan, that lower credit score costs an extra $7,680.

Even compared to a “Prime” borrower (720 credit score), the borrower with a 620 credit score pays $89 more per month, totaling $5,340 in extra interest.

Factors Lenders Look at (Besides the Credit Score)

Your Car Loan History

Have you had a car loan before?

If you have a credit score of 640 but a perfect 5-year history of paying off a previous vehicle, a lender might treat you like a person with a credit score of 700.

Conversely, if you have a 700 score but a previous repossession, you’ll struggle to get a good interest rate.

Debt-to-Income (DTI) Ratio

Lenders want to see that your total monthly debts (rent, credit cards, student loans) plus your new car payment don’t exceed 45–50% of your gross monthly income.

For a $50,000 car, this usually requires an annual income of at least $75,000 to $80,000 to stay within safe lending margins.

The Loan-to-Value (LTV) Ratio

This is the price of the car versus the amount you are borrowing. If you put $10,000 down on that $50,000 car, your LTV is 80%. Lenders love low LTVs.

If your credit score is “just okay” (around 630), a large down payment can often bridge the gap and get you a “Prime” interest rate.

How to Get a Car with a “Sub-Decent” Credit Score?

Get Pre-Approved by a Credit Union

Dealerships make a profit on the interest rate. If a bank offers you 7%, the dealer might tell you the best they can do is 9% and pocket the 2% difference.

Go to a local credit union first. They often have lower overhead and offer much better rates for “Near-Prime” borrowers.

Having a pre-approval letter for $50,000 in your pocket gives you immense leverage at the dealership.

Use a Co-signer

If your credit score is 580, but your parent or spouse has a 750, they can co-sign. This attaches their credit reputation to your loan.

Warning: If you miss a payment, it ruins their credit, too. Use this option only if you are 100% certain of your budget.

The “Refinance Later” Strategy

If you absolutely need a car today but your credit score is a 610, you might have to accept a 12% interest rate.

However, you aren’t stuck with it for five years. If you make every payment on time for 12 months, your score will likely rise.

At that point, you can refinance the car loan with a different lender at a much lower rate.