Roughly 66% of cars financed go to borrowers with scores of 661 or higher, but those with lower scores have options.
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If youre looking to buy a car, the process could get more expensive soon. The Trump administrations tariffs could affect the auto industry, driving up prices. Knowing your credit score now can help you enter the buying process on strong footing.
A first-quarter 2025 report by credit bureau Experian found that roughly 66% of cars financed were for borrowers with credit scores of 661 or higherExperian Information Solutions . State of the Automotive Finance Market Q1 2025. Accessed Jun 9, 2025.View all sources. The report also found that on average, the credit score for a used-car loan was 684, while the average score for a new-car loan was 756.
Your credit score plays a big role in determining the interest rate and terms you’ll get when financing a car purchase. While a score of 630 is considered fair credit it will make getting approved for an auto loan more challenging and likely result in higher interest rates. However with the right strategy, you can still buy a car with a 630 credit score.
What Credit Score is Needed to Buy a Car?
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Most people buying a new car have credit scores over 660 According to NerdWallet, 66% of new car loans go to borrowers with scores above 661
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Used car buyers tend to have slightly lower scores, averaging 684 according to NerdWallet.
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There is no single minimum score required to buy a car, as lenders have different standards. But scores under 620 will make getting approved very difficult
How a 630 Credit Score Affects Your Auto Loan
While a 630 credit score is below the average for most car buyers, it doesn’t mean you can’t get financing. However, it will impact your loan terms:
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Interest Rates – With a 630 score, expect much higher interest rates than buyers with good credit (660+). Rates can vary significantly by lender but may be over 10% for a 630 score.
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Down Payment – Most lenders will require a higher down payment for borrowers with lower scores. Typically at least 10-20% down.
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Loan Term – The length of the loan may be restricted to 60 months or less with a 630 score. Good credit scores can get up to 84 month terms.
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Vehicle Options – Your choice of vehicles may be limited to lower-priced used models. Lenders are less likely to approve high loan amounts for subprime borrowers.
Strategies for Buying a Car with a 630 Credit Score
While it will be more challenging, you can improve your chances of getting approved with the right approach:
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Get pre-approved – Shop lenders and apply for pre-approval before visiting dealers. This shows you can get financing and gives you leverage to negotiate.
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Increase your down payment – Putting down 20-30% or more can offset credit risk. Save as much as you can for a down payment.
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Consider a co-signer – Adding a cosigner with good credit can help you get approved and improve the loan terms. Make sure the co-signer understands their responsibility.
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Look at credit unions – Credit unions may offer better rates and be more flexible on auto loans than traditional banks. Expand your options.
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Focus on used cars – Opt for an affordable used vehicle instead of a new car. This lowers the loan amount required.
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Improve your credit first – If your score is close to 630, wait and work on boosting your credit before applying. Even small improvements can help.
Other Factors Lenders Consider
It’s not just your credit score. Lenders also weigh other aspects of your finances when approving auto loans:
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Income – A stable income source and higher income improves your chances.
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Existing debt – Too many balances close to their limits hurts. Pay down debts.
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Down payment amount – More money down is better for getting approved.
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Loan term requested – Shorter terms pose less risk for lenders.
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Type of vehicle – Used cars are easier to finance than new.
So even with a less-than-ideal credit score, it is possible to buy a car if you have other positive factors in your financial profile. Improving your credit should be a priority, but a 630 score doesn’t have to stop you from getting the transportation you need. With the right lender and loan terms, you can get approved and start rebuilding your credit.
Auto loan interest rates
Interest rates differ based on your credit score, so knowing what to expect can help you budget for your car. Usually, higher scores mean lower interest rates on loans.
According to Experian, a target credit score of 661 or above should get you a new-car loan with an annual percentage rate of around 6.70% or better, or a used-car loan around 9.06% or lower.
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Credit score |
Average APR, new car |
Average APR, used car |
|---|---|---|
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Superprime: 781-850. |
5.18%. |
6.82%. |
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Prime: 661-780. |
6.70%. |
9.06%. |
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Nonprime: 601-660. |
9.83%. |
13.74%. |
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Subprime: 501-600. |
13.22%. |
18.99%. |
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Deep subprime: 300-500. |
15.81%. |
21.58%. |
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Source: Experian Information Solutions, 1st quarter 2025. |
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Someone with a score in the low 700s might see rates on used cars of about 9.06%, compared with 18.99% or more for a buyer scoring in the mid-500s, according to the data from Experian. Using a car loan calculator illustrates the difference that can make.
For example, on a $20,000, five-year used-car loan with no down payment, that’s a monthly payment of about $415.75 for the buyer with a higher credit score versus about $519 for the buyer with a lower credit score. The buyer with better credit would pay about $4,945 in interest over the life of the loan, while the buyer with lesser credit would pay around $11,122. Plus, in most states, bad credit can mean higher car insurance rates, too.
The differences aren’t quite as steep for new-car loans: Borrowers with scores in the low 700s can expect an average rate of 6.7% compared with 13.22% for borrowers with credit in the mid-500s.
Bring documents showing financial stability
If your credit score is low, potential lenders are less likely to see you as a risk if they can see you have stability in other areas of your financial life. Bringing documentation such as your most recent pay stubs and proof of address to show lenders how long you have lived at your current address and worked at your employer could help you seem more reliable.
Can I Get A Car Loan With 630 Credit Score? – CreditGuide360.com
FAQ
Is 630 a good credit score for a car loan?
Still, you typically need a good credit score of 661 or higher to qualify for an auto loan.Mar 18, 2025
What can a 630 credit score get you?
A 630 credit score is considered fair, below the U.S. average of 715. Qualification for some credit cards, car loans, and personal loans is possible, but not with the best terms.
Can I get a $40,000 car with a 600 credit score?
In general, you’ll need a FICO credit score of at least 661 to qualify for a traditional auto loan, although there are lenders that offer bad credit auto loans. Because interest rates remain high, securing a subprime auto loan may be more difficult — and while it is possible, expect to pay a premium.
What is the minimum credit score to buy a car?