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There is no single, industry-wide minimum credit score required to finance a car. Individual lenders set their own underwriting guidelines, and approval depends on more than one number.
Credit does have a price, though. A score of 670 or higher falls into the range FICO considers good credit, which makes approval more straightforward. Buyers below that mark can still qualify, but the interest rate will reflect the higher perceived risk.
Ontario sits at the interchange of I-10 and I-15, and a dependable vehicle is a daily necessity for commuters across the Inland Empire. OREMOR Automotive Group works with drivers across every credit profile at our 18 dealerships in Southern California and Texas.
Lenders sort applicants into five risk tiers. Where you land determines both your approval odds and the rate you are offered.
| Credit Tier | Score Range | Average New Car APR | Average Used Car APR |
|---|---|---|---|
| Super prime | 781 to 850 | 4.55% | 6.30% |
| Prime | 661 to 780 | 6.23% | 8.77% |
| Non-prime (also called near prime) | 601 to 660 | 9.67% | 14.03% |
| Subprime | 501 to 600 | 13.44% | 19.42% |
| Deep subprime | 300 to 500 | 16.01% | 21.77% |
Source: Experian, State of the Automotive Finance Market, Q1 2026.
Two things are worth noting. First, the rate you pay depends heavily on whether you buy new or used. That gap runs from roughly 1.75 percentage points at the top tier to more than five points at the bottom. It is the single most overlooked factor in credit-based rate shopping. Second, these figures are national averages across approved loans, not quotes. Your actual rate depends on the lender, the loan term, the vehicle, and your down payment.
Across all credit profiles in the same period, Experian reported an average new-car loan rate of 6.39% and an average used-car loan rate of 11.43%.
Financing is subject to credit approval. Rates, terms, monthly payments, and approval decisions vary based on creditworthiness, credit history, loan amount, term length, vehicle selected, down payment, and individual lender program, and are subject to change at any time. Any interest rate, credit score range, or ratio figure shown is a published third-party average or general lending guideline provided for comparison and educational purposes only. It is not an offer of credit, a quoted rate, or a guarantee of approval. Not all applicants will qualify. The lender and dealer set the final terms.
Pre-qualification usually involves a soft credit inquiry, which does not affect your credit score. A formal pre-approval requires a hard inquiry. According to FICO, a single additional inquiry takes fewer than five points off the score for most people, and the effect fades within about a year.
Credit scoring models are built to accommodate car shopping. When multiple auto-loan inquiries occur in a short window, they are treated as a single inquiry. Newer FICO models use a 45-day window, while older FICO models and VantageScore use 14 days, according to myFICO. Concentrating your applications inside a two-week span protects you regardless of which model a given lender uses.
Your down payment. The widely used 20/4/10 guideline sets three targets. Put 20% down on a new vehicle and 10% on a pre-owned one. Finance for no more than four years. Keep total transportation costs at or below 10% of gross income. A larger down payment lowers the amount financed, reduces the lender’s risk, and can improve the rate you are offered. Our payment calculator can help you see how different down payments and terms change the monthly number.
Your debt-to-income ratio. DTI measures your monthly debt obligations against your gross monthly income. Most lenders prefer to see it under 36%, and they read it in bands.
The strongest position. Approval odds are highest and you are most likely to see the best available rates.
Approval is still likely, but your rate may be higher and lenders will look more closely at income and existing debt.
Approval becomes difficult. Paying down existing debt before applying will meaningfully change your options.
Auto lenders tend to be more flexible here than mortgage lenders. Many cap DTI in the 45% to 50% range rather than at the 43% threshold commonly cited for mortgages.
Your payment-to-income ratio. Lenders working with credit-challenged borrowers also evaluate PTI, which measures the car payment plus insurance against income. Subprime lenders commonly cap PTI between 15% and 20%. As a budgeting check, Experian suggests keeping total transportation costs between 10% and 15% of take-home pay.
Financing is subject to credit approval. Rates, terms, monthly payments, and approval decisions vary based on creditworthiness, credit history, loan amount, term length, vehicle selected, down payment, and individual lender program, and are subject to change at any time. Any interest rate, credit score range, or ratio figure shown is a published third-party average or general lending guideline provided for comparison and educational purposes only. It is not an offer of credit, a quoted rate, or a guarantee of approval. Not all applicants will qualify. The lender and dealer set the final terms.
A subprime or deep subprime score does not close the door. Drivers in these ranges can still secure financing, and three things materially improve the odds.
Demonstrable positive financial behavior strengthens an application. If you have never missed a credit payment but your score was damaged by business debt, that context matters to an underwriter.
Pay stubs, proof of address, utility bills, auto insurance documents, and proof of current employment. Any document showing you are in a position to repay the loan helps your case.
A larger down payment reduces the amount financed and improves both your approval odds and your rate. The standard guidance is 20% on a new vehicle and 10% on a pre-owned one.
Leasing generally carries stricter credit requirements than a traditional purchase loan. Because the leasing company retains ownership of the vehicle and absorbs the depreciation, captive finance arms set a higher bar for promotional lease programs. Approval thresholds vary by lender, by vehicle, and by which manufacturer incentive programs are running in a given month. Buyers who do not qualify for a lease can often still qualify for a purchase loan on the same vehicle. It is worth asking about both.
Our finance teams work with buyers across every credit background. Bringing current pay stubs, proof of residency, and a recent insurance quote helps move the underwriting process along without waiting on follow-up documents.
You can start your application online or get in touch to talk through your options first. For more on the buying process, see our car buying tips. And if a lower loan amount would help your numbers work, our pre-owned inventory is worth a look.
A note on the federal auto loan interest deduction. For tax years 2025 through 2028, interest paid on some new-vehicle loans is federally tax deductible, and claiming it does not require itemizing. The eligibility rules are narrow. The loan must have originated after December 31, 2024 and be secured by the vehicle. The vehicle must be new, bought for personal use, and built with final assembly in the United States. The deduction phases out for single filers with modified adjusted gross income above $100,000 and joint filers above $200,000. Assembly location varies by model and by plant, so eligibility has to be confirmed vehicle by vehicle rather than by brand. Lease payments do not qualify, and claiming the deduction requires reporting the VIN. The annual maximum is $10,000, but what is deductible is the interest actually paid, which for most loans is well below that ceiling. Whether you qualify, and for how much, is a question for your tax professional.
This information is provided for general educational purposes only and does not constitute tax advice. Eligibility for any deduction depends on your individual circumstances, and tax law is subject to change. Consult a qualified tax professional or the IRS regarding your specific situation.
Auto lenders typically use industry-specific versions, most commonly FICO Auto Score 8 and FICO Auto Score 9. These range from 250 to 900 rather than the 300 to 850 range used by base FICO scores, and they place heavier weight on your past auto-loan payment history. This is why the score a dealer pulls can differ noticeably from the one shown in your banking app.
Yes. A score of 500 sits at the boundary between the subprime and deep subprime tiers, so financing is possible but expensive. Borrowers in this range face the highest average rates and are often asked to provide a larger down payment or a co-signer to secure approval.
Current pay stubs, proof of residence such as a utility bill, and your auto insurance information. Having these ready allows the finance team to submit a complete application to lenders without pausing to collect follow-up documents.
A longer term such as 72 months reduces your monthly payment but increases the total interest you pay over the life of the loan. Shorter terms of 48 or 60 months cost less in interest overall and often qualify for a lower rate, but they require a larger monthly payment.
Check your credit reports for errors and dispute anything inaccurate, pay down existing revolving credit card balances to lower your utilization rate, catch up on any past-due payments, and avoid opening new credit lines in the months leading up to your vehicle purchase.
Financing is subject to credit approval. Rates, terms, monthly payments, and approval decisions vary based on creditworthiness, credit history, loan amount, term length, vehicle selected, down payment, and individual lender program, and are subject to change at any time. Any interest rate, credit score range, or ratio figure shown is a published third-party average or general lending guideline provided for comparison and educational purposes only. It is not an offer of credit, a quoted rate, or a guarantee of approval. Not all applicants will qualify. The lender and dealer set the final terms.
This information is provided for general educational purposes only and does not constitute tax advice. Eligibility for any deduction depends on your individual circumstances, and tax law is subject to change. Consult a qualified tax professional or the IRS regarding your specific situation.
Auto loan rate and credit tier data shown on this page is sourced from Experian’s State of the Automotive Finance Market report, Q1 2026. FICO Auto Score information is sourced from Experian. Market data is updated quarterly and figures may change.