What Credit Score Do I Need to Buy a Car? Here’s What I’ve Learned Helping Customers

By Adam Pirman, Sales Manager at Apple Chevrolet

One of the questions I hear all the time from customers is:

“What credit score do I need to buy a car?”

It’s a completely reasonable question. A lot of people assume there is a magic number you need to reach before a bank or finance company will approve you for an auto loan.

The truth is, there is no single credit score that guarantees approval or prevents you from buying a vehicle.

After more than 18 years in the automotive industry, I’ve worked with customers across a very wide range of credit situations. I’ve helped customers with excellent credit, customers who are rebuilding their credit, and people who aren’t even sure what their credit looks like.

What I’ve learned is that your credit score is important, but it is only one piece of the overall picture.

Here’s how I explain it to customers at Apple Chevrolet.

There Isn’t One Minimum Credit Score

There is no universal credit score requirement for buying a vehicle.

Lenders look at each customer’s overall financial situation when determining whether they are willing to approve an auto loan and what terms they can offer.

Your credit history, income, debt obligations, down payment, loan amount, vehicle, and other factors can all play a role.

That’s why two customers with similar credit scores can sometimes receive very different financing options.

A credit score is important, but it doesn’t tell the entire story.

A 700 Credit Score Doesn’t Always Mean Strong Credit

Here’s an example I see more often than people might expect.

I’ve worked with customers who are just starting to establish their credit and have a credit score over 700.

At first glance, that sounds like excellent credit, and the score itself is certainly good.

But when we look deeper, sometimes that customer has only one account reporting on their credit history.

That means they have a good credit score, but a very light or limited credit history.

This can be especially common with younger buyers or someone who is just beginning to establish credit.

They may have done everything right with the credit they have, but they simply haven’t had enough accounts or enough time for a lender to see a long, established credit history.

I’ve seen situations where someone with a 700-plus credit score still has difficulty getting approved for an auto loan entirely on their own because the lender doesn’t have enough credit history to evaluate how that customer has handled different types of credit over time.

In some situations, having a qualified co-signer or someone else helping with the financing may make a difference.

This is one of the best examples of why I tell customers:

Every credit situation is different.

A 700 credit score doesn’t automatically mean one customer will receive the exact same financing options as another person with a 700 credit score.

The number matters, but the story behind the number matters too.

Your Credit History Is Part of the Bigger Picture

When a lender evaluates an auto loan application, they may look at much more than your credit score.

Depending on the lender and the individual application, factors can include:

• Length of credit history
• Number and types of credit accounts
• Payment history
• Income and employment
• Existing debt
• Down payment
• Loan amount
• Vehicle being financed
• Previous auto-loan history

This is why I encourage customers not to make assumptions based solely on the credit score they see through an app or credit-monitoring service.

I’ve seen customers with what they considered “bad credit” get financing options they didn’t expect. I’ve also seen customers with a very good credit score discover that their limited credit history presented a different challenge.

Every situation really is different.

What If My Credit Isn’t Perfect?

This is probably one of the biggest concerns I hear from customers.

If your credit isn’t where you’d like it to be, that doesn’t automatically mean you can’t purchase a vehicle.

There are lenders that work with different credit situations, and financing options can vary from customer to customer.

I’ve had many conversations with customers who were nervous about applying because they assumed they wouldn’t qualify.

Sometimes the best thing you can do is simply understand your options.

You don’t necessarily need perfect credit to buy a vehicle.

What If I Don’t Know My Credit Score?

That’s okay, too.

Many customers come into the dealership without knowing their current credit score or exactly what’s on their credit report.

Rather than guessing, I recommend getting a clear understanding of your credit situation before making assumptions about what you can or cannot afford.

And remember, the score you see through a consumer credit-monitoring service may not always be the exact score or scoring model a lender uses when evaluating an auto loan.

The important thing is not to let uncertainty keep you from asking questions.

Can a Down Payment Help?

A down payment can sometimes help strengthen a financing application because it reduces the amount you’re asking to borrow.

For example, if you’re purchasing a $40,000 vehicle and putting $5,000 down, you’re financing less than you would if you financed the entire purchase price.

However, I don’t recommend putting down more money than you’re comfortable with simply because you think you have to.

The right down payment depends on your overall financial situation and budget.

Your Trade-In Can Also Make a Difference

If you’re trading in your current vehicle, the equity you have in that vehicle can affect the amount you need to finance.

For example, if your vehicle is worth more than what you currently owe, that positive equity can potentially be applied toward your next vehicle.

On the other hand, if you owe more than your vehicle is worth, that’s a different situation that needs to be evaluated carefully.

This is another reason I encourage customers to look at the entire transaction rather than focusing on one number.

Your credit score is one part of the equation. Your trade, down payment, income, vehicle choice, and amount financed can all affect the overall picture.

Don’t Let Your Credit Score Keep You From Asking Questions

One of the biggest mistakes I see is customers deciding they can’t afford or can’t qualify for a vehicle before they’ve even explored their options.

If you’re concerned about your credit, don’t be embarrassed to ask questions.

Your situation may not be the same as someone else’s, even if your credit scores are similar.

I’ve seen customers walk into the dealership convinced they wouldn’t qualify, only to discover that they had options they didn’t expect.

I’ve also seen customers with excellent credit discover that their limited credit history created a challenge they didn’t realize was there.

That’s why I believe the best approach is to have an honest conversation and understand your individual situation.

My Advice

Don’t assume you need perfect credit to buy a vehicle.

At the same time, don’t assume that having a high credit score automatically guarantees the best financing terms.

Your credit score is important, but your entire credit profile matters.

Understand your credit history, know your budget, consider your trade value, and explore the financing options available to you.

Most importantly, don’t make the decision for the lender before you’ve even had the opportunity to explore your options.

The goal isn’t simply to get you approved for a vehicle.

The goal is to help you find a vehicle and financing solution that makes sense for your situation.

Have Questions? I’m Here to Help.

Every customer’s situation is unique.

Whether you are deciding between leasing and financing, trying to understand your trade value, researching your next Chevrolet, or simply wondering if now is the right time to buy, my team and I are always happy to have an honest conversation.

At Apple Chevrolet, your Tinley Park Chevy dealer, our goal is not just to sell vehicles. Our goal is to help customers make informed decisions they feel confident about.

If you have questions, feel free to reach out directly:

Adam Pirman
Sales Manager
Apple Chevrolet
708-429-3000
apriman@applechevy.com

Or stop by and visit us:

Apple Chevrolet
8585 W 159th St
Tinley Park, IL 60487

I look forward to helping you with your next Chevrolet experience.