Do You Need Good Credit To Buy A Car May 2026
: Lower scores often result in shorter loan durations (e.g., capped at 48–60 months) to reduce lender exposure.
: 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. do you need good credit to buy a car
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. : Lower scores often result in shorter loan durations (e
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 You can secure an auto loan with nearly