Do You Need Good - Credit To Buy A Car

In 2026, most lenders categorize borrowers into five tiers. Those in the "Prime" range (661+) hold roughly 70% of all car loans. Credit Rating Score Range Avg. New Car APR Avg. Used Car APR ~4.7% – 5.3% ~6.8% – 7.2% Prime ~6.4% – 6.8% ~9.4% – 9.9% Nonprime ~9.0% – 11.0% ~12.0% – 14.0% Subprime ~12.0% – 14.0% ~16.0% – 19.0% Deep Subprime

If your score is below 660, experts from NerdWallet and Consumer Reports suggest these steps to improve your odds: How Your Credit Score Affects a Car Purchase do you need good credit to buy a car

Data based on reports from Experian and WalletHub for Q4 2025/2026. In 2026, most lenders categorize borrowers into five tiers

: A 100-point difference can change your monthly payment by $50 to $150 on a $25,000 loan. do you need good credit to buy a car