Do | You Need Good Credit To Buy A Car

: In most states, bad credit also leads to higher car insurance rates. Strategies for Buying with Lower Credit

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

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 : In most states, bad credit also leads

: A 100-point difference can change your monthly payment by $50 to $150 on a $25,000 loan. Credit Rating Score Range Avg

Data based on reports from Experian and WalletHub for Q4 2025/2026.

: Lower scores often result in shorter loan durations (e.g., capped at 48–60 months) to reduce lender exposure.