What credit score is needed to buy a car?

Quick insights

Buying a car can be a complex process and might be one of the largest purchases you’ll make. Credit scores are one factor lenders may review as part of the auto loan application process.

Financial tools may help you to understand your credit score and the factors that contribute to it. For example, Chase Credit Journey^® is a free online tool for anyone 18 or older with a valid U.S. address and Social Security number (SSN). Credit Journey^® offers access to your credit score and personalized score improvement plans provided by Experian^®—no Chase account required.

In short, there is no set-in-stone credit score required to get a car loan. A lower tier credit score is not an automatic disqualifier, but it may impact the loan terms.

In this article, we’ll discuss:

How credit score may affect eligibility for a car loan

Different dealerships and lenders may use different credit scoring models to make their own loan decisions, which could impact your loan terms and approval outcomes. Even with an upper tier credit score, you may be declined, subject to higher interest rates or required to provide a larger down payment than if you had a higher tier credit score.

If you have a lower tier credit score, you may help improve your application by adding a co-signer to the loan, if the lender allows, to share financial responsibility. While important, your credit score is just one of several factors lenders take into account when approving a loan.

When you apply for a car loan, auto dealers may pull from a variety of credit scoring models, including VantageScore or FICO score, both of which have slightly different factors and ranges.

Types of scores reviewed by dealers

Both VantageScore 3.0 and FICO Score 8 scores are used widely by lenders.

Credit scores are the result of multiple factors, and depending which scoring model is used, those factors are weighed differently.

Let’s compare each model below:

Generally, these VantageScore 3.0 factors contribute to a credit score in the following amounts:

FICO Score 8 factors that determine your credit score generally include:

Because lenders use multiple versions of these scores (such as VantageScore 4.0, FICO Score 9 or FICO Auto Score), the exact weighting of these factors may vary depending on the specific model your dealership or lender pulls.

Chase Credit Journey provides your VantageScore 3.0. Because major scoring models are built on the same foundational data, monitoring your score here can help you review your credit habits, even if an auto lender uses a different model.

More ways to help your application

For applicants new to credit or working to build their credit profile, one option may be to add a co-signer. A co-signer is someone who takes responsibility for paying the loan in the event that you cannot. This is a person you trust to assist with payments should you run into any financial trouble, such as a friend or family member.

In addition to having a co-signer, another strategy may be to save up for a down payment before shopping for cars. Doing so may help lower your borrowing requirement.

Ways to build credit before car shopping

If you’re preparing to purchase a car, you may be researching possible ways to improve your credit score.

Here are a few strategies that may be helpful as you work on your credit score:

Steps before you make your purchase

Online financial tools may also be helpful as you prepare for your application:

Conclusion

A credit score is one of several factors lenders may review when evaluating an auto loan application. Lenders may also consider income, employment history and existing debt obligations, among other factors.