What kind of credit score do you need to get a car loan?
The credit score required to qualify for an auto loan is relative to the lender. On average, the
borrower needs a score in the low 700s for a new car loan and mid-600s for a used car loan.
A borrower's credit history tells the lender whether or not they are high or low risk. When
getting approved for an auto loan, most financial institutions will look at the borrower’s
industry-specific auto FICO® Score3, along with their base FICO® Score from the three consumer credit
reporting bureaus: Equifax, Experian and TransUnion.
This credit score also determines the borrower’s interest rate on the loan. Typically, to get an
interest rate between 0–2% on new car loans, the lender will require a credit score of 700 or higher.
Reversely, if a borrower finds themselves with a credit score in the mid-600s or low 500s to low 600s,
they may expect a lender to give an interest rate three to five times higher (between 10–24%) than those
with good or excellent credit.
You can check your FICO® Score for free on our free mobile app, UFirstCU.