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The credit score you’ll need to buy a car will vary depending on your financial circumstances, the type of car you want to buy, and whether you’re buying used or new. That said, the average score needed to buy a car is 751 for new cars and 688 for used cars, according to the second quarter 2026 State of the Automotive Finance Market report by Experian®.
Looking to buy a car in the near future? Here’s what you need to know about the credit scores lenders may use when deciding whether to approve your auto loan application.
Key Points
• The average credit score for buying a new car is 751, while for a used car, it is 688.
• No universal minimum credit score is required for car loans.
• Borrowers with lower credit scores usually face higher interest rates and fees.
• Lenders often use the FICO Auto Score to evaluate creditworthiness for auto loans.
• Building credit involves paying bills on time and reducing credit utilization.
Minimum Credit Score to Buy a Car
Your credit score is a three-digit numerical representation of your credit history. There are two main credit scoring models used in the United States: FICO® and VantageScore®. FICO scores, which generally range between 300-850, are used in the majority of lending decisions.
If your credit score isn’t as high as you’d like, that doesn’t mean there will be no loan options for you. In fact, there isn’t a universal minimum credit score required to buy a car, though some lenders will set minimums of their own.
What’s important to know is that the lower your credit score, the harder it may be to secure a loan — and the more expensive borrowing could get. That’s because if you have poor credit, lenders may charge higher interest rates and fees.
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Recommended: How Long Does It Take to Build Credit?
Understanding Auto Loan Credit Scores
Your credit score is based on information from your credit reports, which are maintained by the three major credit reporting bureaus: Equifax®, Experian, and TransUnion®. The report documents how you’ve managed credit in the past. For instance, it records how many credit accounts you’ve had, which accounts are active and for how long, whether you’ve paid your bills on time, and how much of your available credit you’re using.
There are many different credit scoring models out there, which use different parts of your credit report to calculate your score. For example, some models might ignore debt collections for smaller amounts, while others may consider them. Lenders can choose which credit score they wish to look at when considering you for a loan.
What Is a FICO Auto Score?
There are several versions of a FICO Score, including FICO Auto Score, which — you guessed it — is designed specifically for the auto industry. These scores help predict how likely a borrower is to repay an auto loan on time. This means your history of paying off a car loan could play an important role in determining your score.
How to Increase Your Credit Score Before Buying
As mentioned, if you have a low credit score, it may be harder to secure a loan. And the loan you do secure may be more expensive. To make things easier and cheaper for yourself, you may want to look into ways to build your credit before applying for an auto loan.
Chief among the factors that affect your credit score is your payment history, which accounts for 35% of your FICO Score. One of the best things you can do for your credit file is to pay your bills on time, every time.
Tip: A budget tracker app can help you spot upcoming bills, set a budget, and track where your money is going.
But payment history is just one factor that impacts your credit score. Your credit utilization — or the amount you owe versus your available credit — is also important and makes up 30% of your FICO Score. If you use a lot of your available credit, lenders could worry that your finances are overstretched and, as a result, you may not have the resources to take on another loan. To help build your credit, consider lowering your credit utilization by paying down other debts first.
A long credit history can help build your credit file, so you may want to avoid closing older accounts that are in good standing. And, if possible, try to avoid applying for multiple loans or credit cards in a short period of time. That’s because each application may trigger a hard inquiry, which can temporarily lower your credit score.
Your credit score updates generally at least once a month. To keep track of your progress as you work to build your score, you can check your credit score without paying once a week from each of the credit reporting bureaus.
You might also consider signing up for credit score monitoring to help ensure your current credit score is always at hand.
While you’re at it, make it a habit of checking your credit report regularly. If anything is incorrect on the report, you are allowed to file a dispute with the company that reported the information and the credit bureaus that recorded it.
Recommended: How to Check Your Credit Score Without Paying
Where to Get an Auto Loan
When you’re ready to seek a loan, you’ll want to shop around for the best deals among several different lenders. You may consider getting loan offers from banks and credit unions, online lenders, and dealerships that offer financing. Credit scoring companies recognize that people often shop around to multiple lenders when seeking a loan. And in this case, they won’t penalize you for extra hard inquiries.
How Credit Scores Affect Auto Loans
The higher your credit score, the more likely it is that you’ve been responsible with credit in the past. Lenders see borrowers with higher scores as less of a risk, and they typically reward them with lower interest rates and better terms on auto loans.
On the other hand, lenders see borrowers with lower scores as a greater risk. To compensate for this risk, lenders may charge higher interest rates and offer less favorable terms.
Note that while the lowest FICO Score is 300, that is not necessarily your starting credit score. For instance, if you’re just starting to build credit and have no credit history, you may in fact have no score yet.
The Takeaway
While there is no minimum credit score you need to buy a car, a higher score can help you qualify for a loan with lower interest rates and better terms. If you have a lower credit score, consider doing what you can to build it before you apply for an auto loan. This may include paying your bills on time, lowering your credit utilization, and keeping older accounts open.
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FAQ
How to get an 800 credit score from 720?
To build your credit score from 720 to 800, focus on paying your loans on time, reducing the amount of credit you’re using, and possibly increasing your mix of credit. This process takes time, as payment history and low utilization drive most of your score.
What is the average American credit score?
The average credit score in the United States was 713 in 2025, according to Experian, which is a two-point drop from 715 in 2024. Scores vary by age, state, and scoring model.
How common is an 800 credit score?
Per Experian data, 22.8% of all Americans have a credit score of 800-850. This share increased slightly from 22.5% in 2024.
How rare is a 720 credit score?
A credit score of 720 falls within the “good” range, which is 670-739. By that definition, roughly one in five Americans has a good score.
How big of a loan can I get with a 700 credit score?
A credit score of 700 falls within the “good” range. This means that your loan request likely will not be denied. However, the exact amount you qualify for will depend on a number of factors, including your income, the type of loan you’re applying for, and your debt-to-income ratio.
Is a 720 credit score good enough to buy a car?
There’s no minimum credit score required for an auto loan. Still, a credit score of 720 is considered “good” and can help increase the chances you’re approved for a car loan.
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