Do You Need Good Credit To Buy A Car Online

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

: Lower scores often result in shorter loan durations (e.g., capped at 48–60 months) to reduce lender exposure. do you need good credit to buy a car

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 : 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. In 2026, most lenders categorize borrowers into five tiers

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

While you do not strictly need "good" credit to buy a car, having it significantly reduces the cost and complexity of the purchase. You can secure an auto loan with nearly any credit score, but your score determines your interest rate (APR), required down payment, and overall loan terms.