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There is no universal minimum credit score for a car loan. Some lenders will finance a vehicle at almost any score, just at increasingly punishing rates. What matters is the rate your score earns and whether that cost is worth it. Roughly, 720+ gets the best rates, 660 to 719 is solid, and below 620 means subprime pricing. Here are the real rate tiers by credit score in 2026 and what they cost you.
Key Takeaways
- No score is too low to get approved, but a low score can cost five figures in extra interest.
- 720+ earns the best rates; 660 to 719 is prime; below 620 is subprime.
- Get pre-approved at a credit union before the dealer to avoid rate markup.
- Waiting a few months to raise your score can be worth thousands on a single loan.
What Are Auto Loan Rates by Credit Score in 2026?
| Credit score | Tier | New car APR | Used car APR |
|---|---|---|---|
| 720+ | Super Prime | 5.5% to 7.5% | 6.5% to 9% |
| 660-719 | Prime | 7.5% to 10% | 9% to 13% |
| 620-659 | Near Prime | 10% to 14% | 13% to 18% |
| 580-619 | Subprime | 14% to 20% | 18% to 24% |
| Below 580 | Deep Subprime | 20% to 30%+ | 24% to 30%+ |
Rates are averages and vary by lender, vehicle, term, and state. See our guide on what credit score you need for each major product.
How Much Does Your Score Cost You on a $30,000 Loan?
On a 60-month loan for a $30,000 new vehicle, the rate gap between excellent and deep-subprime credit is enormous (figures approximate):
| APR | Monthly payment | Total interest | Extra vs best rate |
|---|---|---|---|
| 6.5% (720+) | ~$587 | ~$5,200 | Baseline |
| 9% (680-719) | ~$623 | ~$7,400 | +~$2,200 |
| 13% (640-659) | ~$683 | ~$11,000 | +~$5,800 |
| 19% (580-619) | ~$778 | ~$16,700 | +~$11,500 |
| 25% (below 580) | ~$880 | ~$22,800 | +~$17,600 |
At deep-subprime rates, the same $30,000 vehicle ends up costing well over $50,000 total. That is why raising your credit before a major purchase, even by waiting a few months, deserves serious thought. See our guide on how to improve your credit score fast.
Can You Get a Car Loan With Bad Credit?
Yes. Dealers work with subprime lenders and buy-here-pay-here lots specifically for buyers with poor credit, so approval is almost always possible. The real question is the rate and terms. Watch for these signs of predatory subprime lending:
- Loan terms above 72 months on a used vehicle.
- APR above about 25% on any vehicle.
- Starter-interrupt devices that let the dealer remotely disable your car if you miss a payment.
- Spot delivery, where you take the car home before financing is finalized and the terms can later change.
How Do You Get a Better Rate With Bad Credit?
- Join a credit union. Credit unions typically beat banks and dealer financing across all credit tiers, and membership is often easy through community eligibility.
- Put more money down. A larger down payment lowers your loan-to-value ratio, which can move you into a better rate tier and improve approval odds.
- Choose a shorter term. Terms of 36 to 48 months usually get better rates than 72 to 84 months at the same score, though the monthly payment is higher.
- Get pre-approved first. Dealer financing often adds a markup over the lender’s buy rate. Walking in with a bank or credit union pre-approval removes that leverage.
Estimate Your Loan Payoff
Use this calculator to see how your rate and payment affect total interest and payoff time:
Loan Payoff Calculator
FAQ
What credit score do I need to buy a car?
There is no hard minimum; you can be approved at almost any score. But the best rates start around 720, prime pricing runs 660 to 719, and below 620 means subprime rates that cost far more.
Can I get a car loan with a 580 credit score?
Yes, but expect subprime APRs, often in the high teens to 20s, plus stricter terms. A larger down payment, a credit union, and a shorter term can all improve your offer.
How much does a low credit score add to a car loan?
On a $30,000, 60-month loan, deep-subprime credit can add well over $17,000 in interest versus excellent credit, turning a $30,000 car into a $50,000+ purchase overall.
Should I get pre-approved before going to the dealer?
Yes. A pre-approval from your bank or credit union sets a rate to beat and removes the dealer’s incentive to mark up your financing.
Bottom Line
You can get a car loan at almost any credit score, but the rate is everything, and the gap between excellent and subprime credit can exceed $17,000 on a single loan. Aim for 720+, get pre-approved at a credit union, and consider waiting a few months to raise your score before a big purchase. To go deeper, see our guides on what is a good credit score, how to improve your score fast, and car loan vs lease.
This article is for educational and informational purposes only and is not financial advice. Auto rates are averages and vary by lender, vehicle, term, and state. Compare offers and confirm current rates before borrowing.
