Technically, there is no minimum credit score necessary for a car loan. You can get auto financing even with a score in the deep subprime range.
That said, it’s not a financially savvy move. At the lowest end of the spectrum, a borrower that purchased a used car on credit should expect an interest rate of roughly 20.45%.
To put that in perspective, that’s over 5% higher than even the average credit card interest rate in 2020, which was 14.71%.2
Consider using a secured credit card (staying well below the credit limit) or a personal loan like our credit builder accounts to improve your score. That will help you avoid resorting to a bad credit car loan.
For the best results, make sure the lender you use reports your credit history to the right credit scoring agency (also known as a credit bureau) to make sure it shows up on your desired credit report.