Need Good Credit To Buy A Car | Do You

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

: A 100-point difference can change your monthly payment by $50 to $150 on a $25,000 loan. do you need good credit to buy a car

Data based on reports from Experian and WalletHub for Q4 2025/2026. : In most states, bad credit also leads

: A borrower with a score in the 500s might pay over $11,400 in interest on a $20,000, five-year loan—more than double the $5,500 paid by someone with a score in the 700s. : A borrower with a score in the

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.

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