: A 100-point difference can change your monthly payment by $50 to $150 on a $25,000 loan.
: In most states, bad credit also leads to higher car insurance rates. Strategies for Buying with Lower Credit do you need good credit to buy a car
: Lower scores often result in shorter loan durations (e.g., capped at 48–60 months) to reduce lender exposure. : A 100-point difference can change your monthly
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. While you do not strictly need "good" credit
Data based on reports from Experian and WalletHub for Q4 2025/2026.
: 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.