The credit score you need to get an auto loan varies, but the average borrower needs a score in the low 700s for a new car and the mid-600s for a used car.
The credit score you need to get an auto loan varies, but the average borrower needs a score in the low 700s for a new car loan and the mid-600s for a used car loan.
Credit history is one of the main factors lenders consider to determine auto loan approval. It shows them whether the borrower is high or low risk. Most financial institutions will look at the borrower’s industry-specific auto FICO® Score*, along with their base FICO® Score from the three consumer credit reporting bureaus: Equifax, Experian, and TransUnion.
A borrower’s credit score doesn’t just determine car loan approval and the eligible amount, it also affects the interest rate the borrower is given. While it’s possible to find car loan interest rates between 0–2% on new car loans, borrowers will require a credit score of 700 or higher.
Reversely, while a borrower may find an auto loan lender willing to accept an average (mid-600s) or low (500s to low 600s) credit score, the borrower’s interest rate will likely be three to five times higher (between 10–24%) than those with good or excellent credit.
*FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries. CCCU and Fair Isaac are not credit repair organizations as defined under federal or state law, including the Credit Repair Organizations Act. CCCU and Fair Isaac do not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FICO® Score available to primary members only.