What Credit Score Needed for Car Loan in USA?
Getting a car loan depends heavily on your credit score because lenders use it to measure risk.
Here is the general approval range:
| Credit Score | Approval Chance | Loan Type |
|---|---|---|
| 750+ | Very Easy | Best rates |
| 700–749 | Easy | Low interest |
| 660–699 | Good | Standard approval |
| 600–659 | Possible | Higher rates |
| 580–599 | Hard | Subprime lenders |
| Below 580 | Difficult | Special financing |
Minimum credit score for car loan: about 580
Car Loan Interest Rate by Credit Score
(2026 average auto loan APR)
| Credit Score | Average APR |
|---|---|
| 781–850 | 4% – 6% |
| 661–780 | 6% – 9% |
| 601–660 | 9% – 14% |
| 501–600 | 14% – 20% |
| 300–500 | 20% – 29% |
Small score difference can cost thousands in interest.
New vs Used Car Loan Score Requirement
Used cars need slightly higher trust because lenders see more risk.
| Loan Type | Recommended Score |
|---|---|
| New Car Loan | 620+ |
| Used Car Loan | 660+ |
Can You Get a Car Loan with Bad Credit?
Yes — but expect higher APR.
Ways people get approved:
-
Bigger down payment
-
Co-signer
-
Credit union loan
-
Shorter loan term
How to Increase Approval Chances Fast
Pay credit card below 30% utilization Avoid new hard inquiries Dispute errors Add authorized user Pre-qualify instead of apply
Smart Tip (Very Important)
Apply multiple lenders within 14 days → counts as one inquiry
So rate shopping won’t hurt score much.
Final Verdict
You can technically get a car loan with a 580 credit score, but the sweet spot is 660+ and the best interest rates start at 720+.
Improving just 40 points can save thousands of dollars over the loan term.
How Long Hard Inquiry Stays on Credit Report
Source and Reference
https://www.consumerfinance.gov/consumer-tools/auto-loans/
https://www.experian.com/blogs/ask-experian/what-credit-score-do-you-need-to-buy-a-car/
https://www.edmunds.com/car-loan/what-credit-score-do-you-need-to-buy-a-car.html
Car Loan Frequently Asked Questions
Most lenders approve car loans starting around 580 credit score, but good interest rates usually require 660 or higher.
Yes, but you may receive a higher interest rate. A bigger down payment or co-signer can improve approval chances.
Borrowers with 720+ credit score usually receive the lowest auto loan interest rates.
Yes, a hard inquiry may drop your score slightly, but multiple applications within a short period count as one inquiry.
New car loans are easier to qualify for because lenders consider them lower risk compared to used cars.