buying-a-car

What Credit Score Is Needed To Buy A Car?

There’s something very exciting about picking out and owning your own car. However, buying a car is a large purchase, and for most people, it’s difficult to have all of the cash upfront to pay for it. Therefore, getting a car loan is very common. The interest rate that comes with this car loan is directly tied to your credit score, so the better your credit score, the lower the interest you will need to pay for your car loan. Here’s everything you need to know about what credit score is needed to buy a car.

Minimum Credit Score By Auto Lender

The minimum credit score from the largest US auto lenders required is below as of this writing. For the most up-to-date information, you should contact these auto lenders directly to ask about their exact rate for you.

Auto LenderMinimum Credit Score
Ally Financial620
Wells Fargo550
Chase590
Capital One580
Bank of America600
TD Bank600
U.S. Bank680
Fifth Third Bank640

How your credit score affects your ability to obtain an auto loan

At Credit Upflow, we don’t recommend you take out a loan just because your credit score is above the minimum credit score allowed. This is because the interest you’d be paying may be a huge premium to the actual cost of the car. Typically, those with excellent credit scores (750+) would get the best car loan rates, sometimes even a 0% interest rate if there’s a promotion being offered. It’s typically best to have at least a credit score of 650, and to aim for a credit score of at least 700 to avoid paying a major premium on car loans.

FICO ScoreAbility to Obtain Auto Loan
300 – 559Extremely difficult to obtain traditional loans. Should start credit repair ASAP.
560 – 649May qualify for some loans, but interest rates will be very high. Should start credit repair ASAP.
650 – 699Eligible for many traditional loans, but the interest rates and terms will not be the best. Credit repair would greatly help for these cases.
700 – 749Will qualify for almost all loans, with low interest rates (though not necessarily the best offered). Credit repair will still help in these cases.
750 – 850Easily qualify for most loans and lines of credit with low interest rates. Credit repair will help for those on the lower end of the range.

If you’d like to learn more about how to repair your credit, view your Credit Repair Guide.

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