When it comes to financing a vehicle, in many cases your credit score determines what you can afford — and how much you’ll pay over time. But what is a “good” credit score to buy a car? And what should you do if your score is below that mark?

Here’s what you need to know about credit scores, financing options, and how to improve your chances of getting approved.

What finance companies (and others) like to see

Generally, a credit score of 661 or higher is considered good when it comes to auto financing. It’s where you start to see better approval odds and more competitive interest rates.

That said, it's still possible to finance a vehicle with a lower score, but it may come at a higher cost. Borrowers with scores below 600 are often considered subprime and may face higher interest rates, stricter terms, or the need for a co-signer or larger down payment.

How credit scores affect auto financing terms

Here’s an overview of how credit scores are viewed in relation to interest rates:

What if your score is below 600?

A credit score under 600 doesn’t automatically disqualify you from financing a car. But it does mean that lenders may see you as a risk.

To improve your approval chances and financing costs, consider these steps:

• Make on-time payments to build a positive history
• Keep your credit utilization low (below 30%, if possible)
• Avoid unnecessary hard credit inquiries (choose pre-qualification vs. approval)
• Review your credit reports for errors and dispute inaccuracies
• Consider a larger down payment to reduce lender risk
• Use a secured credit card to establish credit over time

You can see some improvement in your credit score in as little as 30 to 45 days if you take positive steps. However, substantial improvements usually take several months to a year or more.

Who to borrow from if you have less-than-perfect credit

If your credit score is below 660, you still have several financing options available to you. Here are some places to start:

• Buy Here Pay Here (BHPH) dealers: These dealerships finance in-house and often approve buyers with bad or no credit. Just be aware of the potential for higher interest rates.
• Specialized subprime lenders finance companies: For example, Credit Acceptance works with dealers nationwide and specialize in financing for people with low credit scores or bankruptcies/repossessions in their past
• Credit unions: Many offer flexible lending criteria and lower rates. However, membership is required, and it may not be available to everyone.

• Online marketplaces: Certain platforms connect you with multiple lenders at once, making it easier to find options that work with a wide range of credit scores
• Traditional banks with subprime divisions: Some banks offer prequalification tools and have divisions that accept borrowers with credit scores below 600

Don’t let a lower score stop you

If you want to see if dealers in the Credit Acceptance network can offer you auto financing, get pre-qualified through our website today. In addition to sharing the monthly payment amount you might qualify for, we’ll match you with 3 local dealers who can help.