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What Is a Bad Credit Score for a Car Loan?
Lenders use different scoring models and criteria when approving bad credit auto loans.
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NerdWallet's content is fact-checked for accuracy, timeliness and
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Shannon Bradley is a NerdWallet authority on autos and home services. Before joining NerdWallet in 2021, Shannon spent 30-plus years as a writer, content manager and marketer in the financial services industry. In these roles, she developed financial expertise and created educational content covering a wide range of personal and business topics. Shannon is based in Newburgh, Indiana.
Julie Myhre-Nunes leads the Auto Loans, Student Loans and Home Services teams at NerdWallet. Julie has over a decade of experience in personal finance. Before joining NerdWallet, she led editorial teams at Red Ventures and several startups. Her personal finance insights have been featured in Forbes, The Boston Globe and CNBC, while her writing has appeared in USA Today, Business Insider, Wired Insights and more.
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No single number defines a bad credit score for a car loan. In general though, if your credit score is below the mid-600s, you can expect higher interest rates and more difficulty getting a loan.
Because lenders consider many factors when approving loans, people with bad credit scores do get auto loans every day. They may have to supply more information to lenders, make bigger down payments, choose a less expensive car or accept higher rates.
Know where your credit score stands
When buying and financing a car, a good first step is to know where your credit score stands. You can get your credit report and score for free through NerdWallet, or you can request a free weekly credit report from each credit bureau at annualcreditreport.com.
FICO and VantageScore are the two most commonly used credit scoring models, and each has scores ranging from 300 to 850. Some auto lenders also heavily use an industry-specific FICO model that weighs certain factors, such as past car-loan payments. Its range is 250 to 900. The cut-off number that places a person in a “bad credit” tier differs by credit scoring model, but it’s generally in the mid-600s or below.
While you can purchase your FICO automotive score, your basic free credit report and score should be enough to understand where you stand. You can compare your score to industry averages to measure how difficult it will be for you to get an auto loan — and at what interest rate.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account factors like maximum rates, variety of loan options, visibility of borrower requirements, accessibility, speed of funding, fees and more.
Best for borrowers with good or excellent credit who want fast approval and funding to buy a new car.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account factors like maximum rates, variety of loan options, visibility of borrower requirements, accessibility, speed of funding, fees and more.
4.5
Est. APR:
Annual percentage rate (APR) represents the true cost of
borrowing money. It is your interest rate plus any loan fees,
and is expressed as a percentage.
Annual percentage rate (APR) represents the true cost of
borrowing money. It is your interest rate plus any loan fees,
and is expressed as a percentage.
6.74 - 15.24%
Term: 24 - 84 months
You will be redirected to the partner's website.
The terms presented here are estimated and provided solely to assist you
in finding a great lender. The terms may vary based on the partner's terms
and conditions.
You will be redirected to the partner's website
The terms presented here are estimated and provided solely to assist you in finding a great lender. The monthly payment amount, Annual Percentage Rate (APR), and any other terms are based on standard Consumers Credit Union rates and terms for your NerdWallet provided credit score, zip code, and the other self-provided information. These terms may vary based on your credit history, your individual income, or other terms of the lender.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account factors like maximum rates, variety of loan options, visibility of borrower requirements, accessibility, speed of funding, fees and more.
Best for applicants who want to compare multiple new car purchase loan offers.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account factors like maximum rates, variety of loan options, visibility of borrower requirements, accessibility, speed of funding, fees and more.
4.0
Est. APR:
Annual percentage rate (APR) represents the true cost of
borrowing money. It is your interest rate plus any loan fees,
and is expressed as a percentage.
Annual percentage rate (APR) represents the true cost of
borrowing money. It is your interest rate plus any loan fees,
and is expressed as a percentage.
6.24 - 29.90%
Term: 24 - 84 months
You will be redirected to the partner's website.
The terms presented here are estimated and provided solely to assist you
in finding a great lender. The terms may vary based on the partner's terms
and conditions.
You will be redirected to the partner's website
The terms presented here are estimated and provided solely to assist you in finding a great lender. The monthly payment amount, Annual Percentage Rate (APR), and any other terms are based on standard Consumers Credit Union rates and terms for your NerdWallet provided credit score, zip code, and the other self-provided information. These terms may vary based on your credit history, your individual income, or other terms of the lender.
Auto Credit Express
New car purchase loan
Not yet rated
Best for new-car buyers who can’t qualify for a lower-rate loan through a traditional lender and need help finding a dealer with subprime lending.
Min score: 525
Amount: $5,000 - $50,000
Min. Amount$5,000
Max. Amount$50,000
Not yet rated
Est. APR:
Annual percentage rate (APR) represents the true cost of
borrowing money. It is your interest rate plus any loan fees,
and is expressed as a percentage.
Annual percentage rate (APR) represents the true cost of
borrowing money. It is your interest rate plus any loan fees,
and is expressed as a percentage.
N/A - N/A
Term: 24 - 84 months
You will be redirected to the partner's website.
The terms presented here are estimated and provided solely to assist you
in finding a great lender. The terms may vary based on the partner's terms
and conditions.
You will be redirected to the partner's website
The terms presented here are estimated and provided solely to assist you in finding a great lender. The monthly payment amount, Annual Percentage Rate (APR), and any other terms are based on standard Consumers Credit Union rates and terms for your NerdWallet provided credit score, zip code, and the other self-provided information. These terms may vary based on your credit history, your individual income, or other terms of the lender.
People with all types of credit scores do get approved for car loans. Consumer credit reporting company Experian provides insight into the percentage of new and used auto loans financed by credit scoring tier.
The breakdown below uses the VantageScore model and reflects auto loans originated in the third quarter of 2025.
Credit score
New car loan distribution
Used car loan distribution
Superprime: 781-850.
46.68%.
23.30%.
Prime: 661-780.
35.81%.
36.23%.
Nonprime: 601-660.
11.24%.
18.82%.
Subprime: 501-600.
5.78%.
18.72%.
Deep subprime: 300-500.
0.48%.
2.93%.
Source: Experian Information Solutions, 3rd quarter 2025.
Car buyers with lower credit scores can usually find a lender willing to approve a loan, but they will typically pay more. Experian also provides a look at the average annual percentage rate for auto loans by credit score.
Credit score
Average APR, new car
Average APR, used car
Superprime: 781-850.
4.88%.
7.43%.
Prime: 661-780.
6.51%.
9.65%.
Nonprime: 601-660.
9.77%.
14.11%.
Subprime: 501-600.
13.34%.
19.00%.
Deep subprime: 300-500.
15.85%.
21.60%.
Source: Experian Information Solutions, 3rd quarter 2025. Based on VantageScore credit scoring model.
Based on Experian data, if you have a 500 credit score, you might see rates on a used car of about 21.60%, compared with 14.11% for a credit score of 650
A borrower with a 650 credit score and a $20,000 five-year used-car loan would have monthly payments of about $466 and pay $7,990 in interest over the life of the loan. Someone with a 500 credit score and the same loan would have monthly payments of about $548 and pay $12,870 in interest.
Even if you can get an auto loan with a bad credit score, consider the savings if you can wait and build your credit first. If waiting isn’t possible, look into refinancing your auto loan to a lower rate after making six to 12 months of on-time loan payments.
Lenders look at more than a bad credit score
Even if your credit score falls into the bad range, it typically isn’t the only factor determining whether you can get an approved auto loan. Lenders will also take into account:
Your current income and expenses, including the debt-to-income ratio.
Employment history and time at current job.
Size of the down payment.
Value of the car you plan to finance.
Length of the loan.
The amount you have in savings.
Lenders will also consider the reasons for your poor credit. For example, did you fall behind financially because of extended hospitalization, being laid off or another situation out of your control? If so, and your financial situation has improved, lenders will usually consider that when making approval decisions.
Approval criteria can vary from lender to lender, as can the credit scoring model they use. So, it’s a good idea to shop for different lenders, enabling you to compare and find the lowest interest rate.
See what you could save on car insurance
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