What Credit Score Do You Need to Buy a Car?

If you're thinking about financing a vehicle, there's a good chance you've wondered:

“What credit score do I need to buy a car?”

Maybe your score is 740.

Maybe it's 650.

Maybe it's 550.

Maybe you haven't checked it in years and have absolutely no idea.

Here's the most important thing to understand:

There is no single credit score you have to reach before you're allowed to finance a car.

Different lenders have different requirements, and your credit score is only one part of an auto financing decision.

A higher credit score can generally make it easier to qualify for more favorable financing terms, but having less-than-perfect credit does not automatically mean you can't finance a vehicle.

Let's break down how it actually works.

Is There a Minimum Credit Score to Buy a Car?

There isn't one universal minimum credit score that applies to every auto loan.

Banks, credit unions, manufacturer finance companies, and other auto lenders can all have different lending standards.

One lender may approve an application that another lender declines.

And two people with the exact same credit score could receive different financing decisions.

That's because lenders don't look at the credit score alone.

Depending on the lender, they may also consider factors such as:

• Income
• Employment
• Existing debt
• Payment history
• Amount financed
• Down payment
• Trade equity
• Vehicle age
• Vehicle mileage
• Loan term
• Loan-to-value
• Previous auto-loan history
• Overall credit profile

So the better question isn't necessarily:

“What credit score do I need?”

It's:

“What financing options might be available based on my entire situation?”

What Is Considered a Good Credit Score for Buying a Car?

Credit scoring can get confusing because there are multiple scoring models, and the score you see through a consumer app isn't necessarily the exact score an auto lender will use.

Generally speaking, stronger credit profiles tend to have access to more competitive financing options.

But there's no magic number where everything suddenly changes.

A score of 700 doesn't automatically guarantee a great rate.

A score below 700 doesn't automatically mean you'll get a bad one.

And a lower score doesn't automatically mean you'll be declined.

Your score is an important piece of the puzzle.

It just isn't the entire puzzle.

Why Your Credit Score Matters

When a lender finances your vehicle, they're taking a risk.

They're giving you money today based on your promise to repay it over the next several years.

Your credit history helps the lender evaluate that risk.

Generally, borrowers who appear less risky may qualify for:

• Lower APRs
• More favorable terms
• Higher potential loan amounts

Borrowers who appear riskier may encounter:

• Higher APRs
• Larger down-payment requirements
• More restrictive terms
• Lower approved loan amounts
• Additional lender requirements

This is why your credit can have such a large effect on your monthly payment.

How Much Can Your Credit Affect Your Car Payment?

Potentially a lot.

Let's say two buyers both finance $30,000 for 72 months.

One qualifies for approximately 5% APR.

The other qualifies for approximately 15% APR.

Their estimated payments would be roughly:

Buyer A — 5%

About $483/month

Buyer B — 15%

About $634/month

That's roughly a:

$150-per-month difference

on the exact same amount financed.

Over six years, that's a substantial difference.

This is why I tell shoppers not to assume:

“A $30,000 car should be around $___ per month.”

The vehicle price is only one part of the payment.

Your financing matters too.

Can You Buy a Car With a 700 Credit Score?

Potentially, yes.

A score around 700 may put many borrowers in a position to qualify for competitive auto financing, depending on the rest of their credit and financial profile.

But again, the score doesn't guarantee approval or a particular APR.

A lender may still consider:

• Income
• Existing obligations
• Credit history
• Loan amount
• Vehicle
• Term
• Down payment

A strong score is helpful.

It isn't a blank check.

Can You Buy a Car With a 600 Credit Score?

Potentially.

A score in the 600s does not automatically prevent you from financing a vehicle.

Your options may be different from someone with stronger credit, and your APR could be higher.

But the lender will evaluate more than the score itself.

This is where vehicle selection and the structure of the transaction can become especially important.

A lender may be much more comfortable with one transaction than another.

For example:

Trying to finance a reasonable amount on a vehicle that fits your income is different from trying to finance substantially more than the vehicle is worth while carrying significant negative equity.

The entire deal matters.

Can You Buy a Car With a 500 Credit Score?

It may still be possible depending on the lender and your overall financial situation.

But financing can become more challenging as the credit profile becomes riskier.

A lender might require:

• More money down
• A different vehicle
• A lower amount financed
• Proof of income
• Proof of residence
• A qualifying cosigner
• Different loan terms

And the APR may be significantly higher than what a borrower with stronger credit receives.

The important thing is not to assume:

“My score is 500-something, so there's no point trying.”

But also don't assume:

“Somebody will definitely approve me.”

Neither statement is necessarily true.

The only way to know what financing is actually available is to have your situation evaluated by lenders.

Your Credit Score Isn't the Only Thing That Matters

This is probably the biggest misconception around car financing.

Imagine two people both have a 640 credit score.

Buyer A

Stable income Low existing debt $4,000 down No negative equity Reasonable vehicle price Previous successfully paid auto loan

Buyer B

Lower income High existing monthly obligations $0 down $8,000 negative equity Expensive vehicle Limited credit history

Same credit score.

Completely different transactions.

That's why it's difficult to predict an approval or interest rate based on a score alone.

Income Matters Too

Credit answers one question:

“How have you handled borrowed money?”

Income helps answer another:

“Does this payment appear affordable?”

A person can have excellent credit but still try to purchase a vehicle that doesn't make sense relative to their income and existing obligations.

Likewise, someone with imperfect credit may have strong income and a transaction that otherwise makes sense to a lender.

Lenders may evaluate your debt obligations relative to your income when deciding whether to approve a loan.

Again:

The entire financial picture matters.

Your Down Payment Can Matter

Putting money down can potentially help a transaction in several ways.

It can:

• Reduce the amount financed
• Lower your monthly payment
• Improve the loan-to-value position
• Reduce how much you're borrowing relative to the vehicle

Suppose the total transaction requires financing:

$30,000

Putting $3,000 down reduces that to approximately:

$27,000

before considering other transaction details.

That's less money you're asking the lender to finance.

However, there's no universal amount of money down that guarantees approval.

Your Trade Can Help—or Hurt

If you have a trade, your equity position matters.

Suppose your trade is worth:

$18,000

and you owe:

$12,000.

You have approximately:

$6,000 positive equity.

That can help reduce the amount you need to finance.

Now suppose the same trade is worth $18,000, but you owe:

$26,000.

You're approximately:

$8,000 upside down.

If that negative equity is included in the next transaction, you're asking the lender to finance more money.

That can make financing more difficult regardless of your credit score.

This is why knowing your trade value and payoff before shopping can be extremely helpful.

The Vehicle You Choose Matters

Here's something many buyers don't realize:

The vehicle itself can affect financing.

Lenders may have guidelines regarding:

• Vehicle age
• Mileage
• Value
• Loan amount
• Loan term

A lender may view financing $25,000 on one vehicle differently from financing $25,000 on another.

That's another reason a financing decline doesn't necessarily mean:

“You can't buy a car.”

It may mean that particular transaction doesn't fit that particular lender's guidelines.

Sometimes changing the vehicle changes the financing situation.

What Is Loan-to-Value?

You'll occasionally hear the term LTV, or loan-to-value.

In simple terms, it compares how much you're borrowing with the value of the vehicle.

For example, if you're financing significantly more than a vehicle is worth because you're including negative equity, taxes, fees, and other costs, the lender is taking on more risk.

A down payment or positive trade equity can potentially improve that situation by reducing the amount financed.

This is another reason credit score alone doesn't determine whether a deal gets approved.

Does a Cosigner Help?

A qualified cosigner may help in some situations.

The lender can consider the cosigner's credit and financial profile as part of the application.

However, cosigning is a serious financial commitment.

The cosigner isn't simply “helping you get approved.”

They're agreeing to responsibility for the debt.

If payments aren't made as agreed, the cosigner can be affected too.

So this isn't something either person should take lightly.

Should You Check Your Credit Before Shopping?

I think it's a good idea.

You don't necessarily need to obsess over the exact number, but knowing approximately where you stand can prevent surprises.

You can also review your credit reports for errors or accounts you don't recognize.

Keep in mind that the score you see through your bank, credit-card company, or credit-monitoring app may not be identical to the score used by an auto lender.

That's normal.

There are different credit scoring models and versions.

Treat your consumer score as useful information—not necessarily a guaranteed prediction of what the dealership or lender will see.

Should You Get Preapproved?

It can be worth considering.

A preapproval through your bank, credit union, or another reputable lender can give you an idea of what financing may be available before you start shopping.

Then you can compare that offer with financing available through the dealership.

If your bank has the better option, great.

If the dealership can beat it, great.

The goal is simply to understand your options.

What If Your Credit Isn't Great?

First:

Don't panic.

Second:

Don't pretend it doesn't matter.

If you know your credit needs work, there are several things you can consider before buying.

Check Your Credit Reports

Look for inaccuracies and accounts you don't recognize.

Pay Down Existing Debt

Reducing certain outstanding balances may improve your overall financial position.

Avoid Taking On Unnecessary New Debt

Applying for several unrelated credit products immediately before financing a vehicle may complicate your situation.

Save a Down Payment

More money down may help reduce the amount you need to finance.

Consider a Less Expensive Vehicle

Sometimes the easiest way to make financing work is simply borrowing less.

Know Your Trade Position

If you're significantly upside down, understand that before trying to roll that balance into another vehicle.

Consider Waiting

Sometimes the smartest car-buying decision is:

Don't buy yet.

If your current vehicle is working fine and waiting six months gives you time to save money, reduce debt, or improve your credit profile, waiting could put you in a much better buying position.

I'm a car salesman, and I'll still tell you that.

The goal should be making a good financial decision—not simply finding a way to buy a car today.

Can a Dealership Tell You What You'll Qualify For Without Running Credit?

We can estimate scenarios based on information you provide, but nobody can responsibly promise you a specific approval or APR without actually evaluating the application.

If someone tells you:

“I guarantee you'll get 5.9%.”

without knowing anything about your credit or financial situation, I'd be skeptical.

Advertised promotional rates typically require qualification and may only apply to certain vehicles, terms, or borrowers.

Estimates are useful.

Guarantees are different.

Don't Shop Based on the Interest Rate You Hope You'll Get

This is another common mistake.

You find a payment calculator online.

You enter:

$30,000 vehicle

72 months

4.9% APR

Great.

The payment looks perfect.

But where did 4.9% come from?

If that's an actual financing program you qualify for, fine.

If you just picked a low number because the calculator needed something entered, the resulting payment may not be realistic.

When you're early in the shopping process, run multiple scenarios.

For example:

5%

8%

12%

Then see how your budget changes.

That gives you a range rather than one overly optimistic number.

What's More Important: Credit Score or Monthly Budget?

Both matter, but they answer different questions.

Your credit profile helps determine what financing may be available.

Your budget determines what financing you should comfortably take on.

Just because you're approved for a $700 payment doesn't mean you should have a $700 payment.

That's your decision.

Before shopping, figure out what you'd actually feel comfortable paying each month.

Then work backward into a vehicle price range based on realistic financing assumptions.

So, What Credit Score Do You Need to Buy a Car?

There isn't one magic number.

You don't automatically qualify because your score is above a certain number.

And you aren't automatically disqualified because it's below one.

Auto lenders may consider your:

Credit history

Income

Existing debt

Down payment

Trade equity

Amount financed

Vehicle

Loan term

and other factors.

Generally, stronger credit can make it easier to access more favorable financing.

But if your credit isn't perfect, don't automatically assume you can't buy a vehicle.

Find out what your actual options are.

And if the numbers don't make sense right now, it's perfectly okay to wait.

The goal isn't just to get approved.

It's to buy the right vehicle with financing you understand and a payment you can comfortably afford.

Shopping for a Car in Wichita?

If you're worried about your credit and aren't sure where to start, you don't need to know exactly what you'll qualify for before asking questions.

Tell me what you're trying to accomplish, what kind of vehicle you're considering, your approximate budget, and whether you have a trade.

I'll help you understand the process and what your next step might look like.

Ask Andrew →

If you already know approximately what you'd like your monthly payment to be:

Calculate My Vehicle Budget →

This article is for general educational purposes and is not financial advice or an offer of credit. Credit scores alone do not determine financing approval or terms. APRs, loan amounts, down-payment requirements, terms, and approvals vary by lender, vehicle, creditworthiness, income, transaction structure, and other factors.