What Credit Score Do You Need for a Car Loan?
By CreditGM · Last updated July 2026 · 5 min read
Your credit score has a massive impact on your auto loan — not just whether you get approved, but how much you pay. Here is what you need to know.
Auto Loan Credit Score Tiers
| Credit Score | Tier | Typical Rate (New Car) |
|---|---|---|
| 720+ | Super Prime | 5-6% |
| 660-719 | Prime | 7-9% |
| 600-659 | Near Prime | 10-13% |
| 500-599 | Subprime | 14-18% |
| Below 500 | Deep Subprime | 18-25%+ |
The Real Cost of Bad Credit on a Car Loan
On a $25,000 car loan over 60 months, the difference between a 6% rate (good credit) and an 18% rate (bad credit) is over $11,000 in extra interest. Fixing your credit before buying a car can literally save you thousands.
Tips to Get Approved with Bad Credit
Larger down payment. 20% or more reduces the lender's risk and can improve your approval odds.
Get pre-approved first. Know your rate before you walk into a dealership.
Consider a co-signer. A co-signer with good credit can get you dramatically better rates.
Fix your credit first. Even 60-90 days of credit repair before buying can move you up a tier and save thousands.
CreditGM offers a free credit analysis — let us help you get to a better rate tier before your next auto purchase.
CreditGM is a CROA-compliant credit repair company in Scottsdale, AZ. Our bilingual specialists serve clients in English, Spanish and French. All content is reviewed for accuracy and legal compliance.
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