Best Car Loan Rates by Credit Score
When applying for any new form of credit, including a car loan, your credit score is one of the most influential factors in determining your interest rate. The higher your credit score, the more likely you are to receive lower interest rates, and vice versa.
Of course, with car loans, there are other factors, too, such as whether you’re buying a used or new car. But applying with a healthy credit score is one of the strongest ways to give yourself a fighting chance if you want favorable interest rates.
Protect your vehicle and your budget with a car warranty
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
CarShield offers seven warranties, including bumper-to-bumper, powertrain, electrical systems, motorcycles and EVs. Contracts are administered by American Auto Shield.
Car loan rates by credit score
| Credit score | New car loan rate | Used car loan rate |
|---|---|---|
| Super prime (781 – 850) | 4.66% | 7.70% |
| Prime (661 – 780) | 6.27% | 9.98% |
| Nonprime (601 – 660) | 9.57% | 14.49% |
| Subprime (501 – 600) | 13.17% | 19.42% |
| Deep subprime (300 – 500) | 16.01% | 21.85% |
Source: https://www.experian.com/content/dam/noindex/na/us/automotive/finance-trends/experian-safm-q4-2025.pdf
Where to get an auto loan
If you want to keep the loan process simple, you can consider dealer financing, which is where your dealer facilitates the process of getting the loan with a third-party bank. However, keep in mind this method can land you in some higher interest rates.
Alternatively, there are also options if you’d prefer to stick with a traditional lender that you’re familiar with or may already have a banking relationship with. Capital One Auto Finance is a top choice for competitive rates, offering loans from a bank that’s become a household name. Terms range from 24 to 84 months and loan amounts start at $4,000, and there are no early payoff penalties. Existing Capital One customers may be eligible for additional discounts and benefits.
Capital One Auto Finance
-
APR
-
Loan types
New vehicles, used vehicles, refinancing
-
Loan amounts
-
Terms
-
Minimum credit score
-
Fees
There is no early payoff penalty. Late fees depend on the lender.
-
Availability
Capital One Auto Finance offers car loans nationwide except in Hawaii and Alaska.
Pros
- Lends to borrowers with bad credit
- No early payoff fees
- Prequalification available
Cons
- Only available for vehicles from participating dealers
- You must apply at the dealer to get the final loan terms
When you have a few minutes to shop around for the best rate, the myAutoloan online platform connects car buyers with up to four pre-approved loan offers in just a few minutes. You can get approved with a FICO Score of 600 or apply with a co-signer.
MyAutoLoan
-
APR
-
Loan types
New vehicles, used vehicles, refinancing, private party and lease buyout
-
Loan amounts
-
Terms
-
Minimum credit score
-
Early payoff penalty
-
Late fee
Pros
- Open to borrowers with bad credit (minimum 575 score)
- No early payoff fees
- Prequalification available
- Provides multiple offers
- Fully online application available
- Co-borrowers and co-signers allowed
Cons
- Not available in all states
- Limited customer service
And if you’re looking specifically for a used car, CarMax is a used-car retailer offering financing. What we especially like is its “three-day payoff program” that allows borrowers to change lenders within three business days (at no extra cost) if they find a better rate or term. Also, there’s no minimum credit score requirement for approval.
CarMax Auto Loan
-
APR
-
Loan type
-
Loan amounts
-
Terms
-
Minimum credit score
-
Fees
No origination fee or prepayment penalty but late fees vary by state and contract.
-
Availability
CarMax does not lend in Alaska, Arkansas, Hawaii, Montana, North Dakota, South Dakota, Vermont, West Virginia or Wyoming
Pros
- Open to borrowers with bad credit
- No early payoff fees
- Prequalification available
- 100% online application process available
- Low minimum loan amount
- Allows co-borrowers
Cons
- Financing is only available for cars sold at CarMax
- Not available in all states
- Prices are non-negotiable
What determines your auto loan rate?
Your credit score is a major factor in determining your auto loan interest rate but it’s not the only factor. Here are some other factors that can influence your rate:
- Loan term: Shorter loan terms may help you land lower interest rates compared to longer loan terms. Many lenders offer terms that start at just 24 or 36 months.
- Down payment size: The larger your down payment, the more likely you can score a lower interest rate. That’s because you’d be taking on less of a loan (lowering the loan-to-value ratio of your purchase).
- Lender: Between dealer financing, banks, credit unions and online lenders, dealer financing is most likely to land you a higher interest rate and online lenders are more likely to get you a lower interest rate.
- Type of vehicle: Perhaps surprisingly, a used, older car can often mean higher interest rates because it’s seen as a riskier vehicle. A new car, though, can get you lower interest rates.
Subscribe to the CNBC Select Newsletter!
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Why trust CNBC Select?
Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
<
