When getting a car loan, the average credit score you need can vary, though it's easier to secure a loan if you have good credit, which falls around the 670 mark on the FICO credit score range. The average credit score for borrowers financing a vehicle has been rising over the past several years, and now, the average for both new and used car buyers falls under "good" credit.
This doesn't mean that borrowers with poor credit scores aren't buying cars; it just means you may have to do a little more work to see results as a bad credit borrower.
Average Credit Scores for Car Loans
According to Experian's State of the Automotive Finance Market report for the third quarter of 2025, the current average credit score to purchase a vehicle sits around 754 points for a new car and 691 points for a used car. (Experian is currently using VantageScore 4.0 to track credit scores.) These are only slightly different from the same quarter last year. The average credit score to finance a new car has gone up a point, while the average credit score for financing a used vehicle has gone down several points.
How Credit Scores Affect Car Loan Terms
Credit affects your car loan in so many ways, not just if you're approved or not. However, approval is the first thing that will be impacted by your credit. If you don't have a high enough credit score, you won't be approved for a loan at all. But where the cut-off is depends on the dealership and lender you're working with.
Credit scores can impact many factors of a loan and what you qualify for. With a lower credit score, you're likely to qualify for higher interest rates, may have fewer dealership options that will approve you, be subject to lower loan amounts, and see an increased monthly payment due to higher interest rates compared to borrowers with good credit. Let's look at how your credit score can impact these areas of your loan process or outcome.
- Interest rates: Interest rates are definitely impacted by your credit score, but in an inverse way. The lower your credit score is, the higher your interest rates are likely to be. Conversely, if you have a high credit score, you're more likely to qualify for lower interest rates.
- Loan approval: When you have bad credit, meaning a low credit score, it's entirely possible for it to be more difficult to purchase a vehicle through a franchised dealership or with a captive lender. This means you may have to seek out alternative lending opportunities, such as special finance dealers and buy here pay here lots. Bad credit won't necessarily stand in your way, but it will give you fewer options when shopping for a car loan.
- Loan amounts: The loan amount you're approved for can also be impacted by your credit score. The lower your credit score, the lower the amount you are likely to be approved for. In fact, in Q3 2025, borrowers with deep subprime credit (300 - 500) were approved for loans that were around $4,600 less than those with a prime credit score (661 - 780).
- Monthly payments: Monthly payments are tricky when it comes to averages based on credit score. Due to higher interest rates, borrowers with lower credit scores will typically have a higher monthly payment. However, since those payments can be exorbitant, these borrowers tend to stretch their loan term to the longest possible amount of months, effectively lowering monthly payments. According to Experian, the latest averages for monthly payment by credit score, for new car loans are:
- Super prime – $727
- Prime – $754
- Near prime – $793
- Subprime – $780
- Deep Subprime – $748
As you can see, your credit score can play a large role in your auto loans, not only affecting approval, but the terms and conditions you qualify for as well.
Credit Score Tiers and Associated Loan Terms
Credit is broken down into five tiers according to Experian. These are super prime, prime, near prime, subprime, and deep subprime. As we've seen, each tier has a different set of averages when it comes to loan terms, loan amounts, and average payments. Here's a breakdown of what to expect from the different credit tiers.
Super Prime
This is the best credit score tier there is, and the scores in it range from 781 to 850. When you're in the super prime category, you have the best credit available and don't typically have to worry about approval. The average new car loan amount is $40,534, while used financing falls at $29,172 on average. Average monthly payments are $727 for a new car and $527 for a used one, while average loan terms are around 65 months. When it comes to interest rates, on average, the borrowers in the super prime category get the lowest rates, 4.88% for a new car loan and 7.43% for a used car loan.
Prime
These borrowers have good credit between 661 and 780, and tend to take on the most when financing a new vehicle. The average loan amount for new financing in this credit score tier is $44,408, while used car financing comes in at an average of $28,270. This makes payments of about $754 and $519, respectively. Average loan terms fall around 72 months for new financing and 68 months for used. Interest rates run between 6.51% and 9.65% on average.
Near Prime
Also known as nonprime, this credit tier runs between 601 and 660. Average loan amounts are $44,526 for a new vehicle and $26,104 for a used one. Average payments run $793 and $543, respectively, for new and used, and loan terms are around 75 months and 68 months. For near prime borrowers, average interest rates are currently between 9.77% and 14.11%.
Subprime
Subprime borrowers have credit scores that fall between 501 and 600, and are considered bad credit borrowers. These borrowers have an average loan amount of $39,841 for a new car and $23,020 for a used car, with payments that run $780 and $555, respectively. Average loan terms are around 74 months and 66 months, while average interest rates are near 20% – 13.34% on average for a new car loan and 19% for a used car.
Deep Subprime
Deep subprime consumers have the lowest credit scores, falling between 300 and 500. These borrowers typically have new car loans that run about $35,286 and used car loans that are $21,146. Average monthly payments are $748 and $556 for new and used, while loan terms run about 72 months for a new car and 64 months for a used car. These borrowers also see the highest interest rates at 15.85% for new and 21.60% for used.
The Bottom Line
Your credit score matters when it comes to getting an auto loan, and the average credit score you have can impact the rates and terms you qualify for. Even if your credit falls below average, there are still options for you to get the auto loan you need. With credit challenges, you will likely need to work with a subprime lender that is equipped to handle unique situations.
If you're not sure where to start, we recommend using a service such as ours to help connect you to a dealership that's prepared to work with your credit. Bad credit doesn't have to stand in your way when you're looking for a loan.
Source: Experian
