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What Credit Score Do You Need for an Auto Loan
Buying a car often means taking out an auto loan, and a credit score is one of the most important factors lenders consider. Many borrowers assume there is a single cutoff score required for approval, but auto lending is more flexible than that. Lenders look at ranges, risk levels, and the overall financial profile of the borrower. Understanding how credit scores affect auto loans can help you set realistic expectations and prepare before applying.
This guide explains the average credit score for an auto loan, what is considered good credit, how minimum requirements work, and how lenders evaluate borrowers with low or limited credit histories.
Last updated February 2026
How credit scores are used in auto lending
When you apply for an auto loan, lenders use your credit score to estimate risk. A higher score suggests a history of on time payments and responsible borrowing, while a lower score indicates a higher likelihood of missed payments. Auto loans are secured by the vehicle itself, which allows lenders to approve borrowers across a wider range of credit scores than unsecured loans.
Credit scores are usually grouped into tiers. These tiers help lenders decide whether to approve a loan, what interest rate to offer, and what conditions to require. While income, employment, and debt also matter, credit score plays a central role in determining loan terms.
What is the average credit score for an auto loan?
The average credit score for an auto loan tends to fall in the low to mid 700s. This reflects borrowers who qualify for more favorable interest rates and standard loan terms. Averages vary depending on whether the loan is for a new or used vehicle, with new car loans often skewing slightly higher.
It is important to remember that an average is not a requirement. Many borrowers are approved with scores below the average, while others with higher scores may still face limitations based on income or debt levels. The average simply shows where most approved borrowers fall, not where approval begins.
What is a good credit score for an auto loan?
A good credit score for an auto loan is generally considered to be in the high 600s to low 700s or above. Borrowers in this range typically qualify for competitive interest rates and flexible loan terms. Lenders view these applicants as lower risk, especially when paired with stable income and manageable debt.
That said, there is no universal definition of good credit across all lenders. One lender may consider a 680 strong, while another may reserve its best rates for borrowers above 720. Market conditions, vehicle type, and loan length can also influence how a score is evaluated.
Minimum credit score for an auto loan
There is no single minimum credit score for an auto loan that applies everywhere. Many lenders begin considering applicants in the low 600s, but approvals can occur both above and below that level. Some borrowers with scores in the 500s are approved, especially if other factors are strong.
When lenders talk about minimum credit score requirements, they are often referring to internal guidelines rather than strict cutoffs. A borrower slightly below a stated minimum may still be approved if income is high, debt is low, or a large down payment is provided.
Credit score needed for auto loan approval
The credit score needed for auto loan approval depends on the lender and the borrower’s overall profile. In general, borrowers with scores around 650 have access to a broad range of lenders, though rates may not be the lowest available. Those above 700 typically see more favorable pricing, while those below 600 may face higher rates and fewer options.
Auto loan requirements credit score thresholds are also influenced by whether the vehicle is new or used. New cars often qualify for slightly more flexible terms because they retain value longer, while used car loans may require stronger credit to offset depreciation risk.
650 credit score auto loan expectations
A 650 credit score auto loan is common and widely available. Borrowers at this level are often considered near prime or fair credit, depending on the scoring model. Approval is likely with many lenders, though interest rates may be higher than those offered to borrowers with stronger credit.
At this score range, lenders pay close attention to income stability and existing debt. A steady job history and reasonable debt levels can significantly improve loan terms, even if the credit score is not considered excellent.
Bad credit score auto loan considerations
A bad credit score auto loan typically refers to scores below the low 600s. Borrowers in this range may still qualify, but loans often come with higher interest rates, stricter repayment terms, and additional requirements. These may include proof of income, a larger down payment, or a shorter loan term.
Because interest costs can add up quickly, borrowers with low scores should focus on affordability rather than approval alone. Understanding the total cost of the loan is especially important when credit is limited.
530 credit score auto loan with co signer
A 530 credit score auto loan with a co signer is possible in some cases. A co signer with stronger credit can reduce the lender’s risk by agreeing to repay the loan if the primary borrower cannot. Lenders typically review both credit profiles, but the co signer’s score may help offset the primary borrower’s low score.
Even with a co signer, approval is not guaranteed. Lenders still evaluate income, debt, and the ability of both parties to manage the loan. In many cases, loan pricing reflects a blend of risk, meaning rates may still be higher than average.
Whose credit score is used on a joint auto loan?
For a joint auto loan, lenders typically review both applicants’ credit reports and scores. Approval decisions often consider the lower of the two scores, especially when assessing risk. Some lenders may average the scores, while others base pricing primarily on the weaker profile.
Because both borrowers are equally responsible for repayment, late payments affect both credit reports. This makes it important for joint applicants to understand how shared responsibility impacts credit before signing the loan agreement.
Other factors lenders consider beyond credit score
While credit score is important, it is not the only factor in auto loan approval. Lenders also evaluate income, employment history, debt to income ratio, and the size of the down payment. A strong showing in these areas can sometimes compensate for a lower credit score.
Vehicle factors also matter. Loan to value ratio, vehicle age, and mileage can all influence approval and terms. Newer vehicles with lower mileage generally pose less risk to lenders, which can work in the borrower’s favor.
Why auto loan credit score requirements vary
Auto loan credit score requirements vary because lenders have different risk tolerances and business models. Banks, credit unions, and online lenders may all evaluate risk differently. Market conditions, interest rate environments, and vehicle demand can also shift lending standards over time.
This variability is why borrowers with the same credit score can receive very different offers from different lenders. Comparing options can reveal how flexible or strict individual lenders are with credit requirements.
Preparing before applying for an auto loan
Understanding where your credit score falls relative to lender expectations can help you prepare. Reviewing your credit report, verifying income, and planning a realistic budget all contribute to smoother approval. Even small improvements in credit or financial documentation can influence loan terms.
Auto loans are one of the most common forms of credit, and lenders are accustomed to working with a wide range of borrower profiles. Knowing how credit score fits into the process helps set expectations and reduces surprises during the application.
FAQs
What credit score is needed for an auto loan?
Many lenders consider applicants starting in the low to mid 600s, though approvals can occur outside that range.
What is the average credit score for an auto loan?
The average approved borrower often has a score in the low to mid 700s.
What is a good credit score for an auto loan?
Scores in the high 600s to low 700s or higher are generally considered good for auto loans.
Can you get an auto loan with a 650 credit score?
Yes, a 650 score is commonly approved, though interest rates may be higher than average.
Can you get an auto loan with bad credit?
Yes, but loans with low credit scores often come with higher costs and stricter terms.
Whose credit score is used on a joint auto loan?
Lenders usually review both scores and may base approval and pricing on the lower one.