Technically, there’s no exact minimum credit score to buy a car. A good credit score is usually regarded as 661 and above, and this increases your chances of getting a loan approved with reasonable interest rates. Below 661 is considered non-prime, which means you can probably get a loan, but interest rates will be higher.
What a Low Credit Score Means
A subprime credit score is usually between 501 and 600. Finding financing for a car can be more challenging when you have a low credit score. Interest rates are likely to be much higher and you may need to consider Buy Here Pay Here lots as an alternative form of financing. Deep subprime is between 300 and 500, and this makes it even more difficult to get financing.
However, your low credit score is not necessarily the only factor in getting a loan. A large down payment can sometimes offset a low credit score. Agreeing to a shorter loan time can also offset a low score, but this usually translates to higher monthly payments.
Not all lenders have the same standards for car loans. New cars may require more consideration than a cheaper used car. If you have a credit score that’s less than ideal, you should shop around and possibly consider alternative methods like Buy Here Pay Here lots.
What is a Buy Here Pay Here Lot?
Buy Here Pay Here is a non-traditional form of financing a car. This usually means that the car lot offers in-house financing for certain vehicles. Since it’s in-house financing, they don’t need a bank to approve the loan. In most cases, you won’t need a credit check, just proof that you can afford the monthly payments. For example, proof of employment and where you live.
The major downside with BHPH loans is that they come with much higher interest rates. You may also need to make payments every two weeks instead of just once a month. Sometimes the interest is baked into the purchase price of the car.
Another form of BHPH is when dealerships advertise “your job is your credit.” This essentially means all you need to do is show proof of employment or income to get approved for a loan. Ultimately, BHPH is a way to get an auto loan without a credit check.
What Credit Score Do You Really Need in 2025?
According to the numbers, about 71% of financed cars go to those who have a credit score over 661. The average credit score for a used-car loan was 691 in the third quarter of 2024. The average credit score for a new-car loan was 755. Only about 12% of cars financed go to borrowers with scores between 501 and 600. Less than 2% of cars financed go to those with scores below 500.
As you can see, the credit score needed to finance a car in 2025 is quite high. The average is between 691 and 755. A score between 661 and 780 is considered Prime, while a score between 781 and 850 is considered Superprime. To get the best interest rates, a Superprime score is ideal.
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