What Credit Score Is Needed to Buy a Car in 2025?

Buying a car is one of the most important financial decisions you’ll make — and understanding your credit score is a big part of the process. Whether you’re shopping for a new GMC Sierra, Yukon, or Terrain here at Starling GMC Titusville, knowing how your credit score affects your financing options can help you feel more prepared and in control.

Your credit score doesn’t just impact whether you’ll get approved for a loan — it also influences your interest rate, your monthly payment, and even the types of financing programs available to you. But don’t worry — even if your credit isn’t perfect, there are still plenty of options available.

In this guide, we’ll break down everything you need to know about credit scores and car buying in 2025. From understanding minimum credit score requirements to learning how down payments and co-signers can improve your approval odds — we’re here to help you navigate the process with confidence.

At Starling GMC Titusville, we work with drivers from all credit backgrounds — because we believe everyone deserves the chance to drive a reliable vehicle. Let’s take a closer look at how credit scores work when it comes to buying a car — and how we can help you find the right financing solution for your situation.

Why Credit Score Matters When Buying a Car

When you apply for an auto loan, lenders want to understand how much risk they’re taking by financing your purchase. That’s exactly where your credit score comes in — it acts like a snapshot of your financial habits and history.

A higher credit score tells lenders that you’ve managed credit responsibly — paying bills on time, keeping debts under control, and maintaining good financial standing. As a result, borrowers with strong credit often unlock better financing offers: lower interest rates, flexible loan terms, and in some cases, zero-down payment options.

On the other hand, if your credit score is lower, lenders may view the loan as a higher risk. This doesn’t mean you won’t get approved — but it might mean you’ll face higher interest rates or need to meet additional requirements like a larger down payment or a co-signer.

At Starling GMC Titusville, our goal is to help every customer — no matter their credit score — understand their options clearly. We’ll work with you to find the best possible terms based on your unique financial situation so that you can drive away feeling comfortable with your decision.

How Credit Score Affects Auto Loan Rates

Your credit score is one of the most important factors lenders consider when setting your auto loan interest rate. Simply put, the higher your credit score, the lower the interest rate you’re likely to receive — and that can make a significant difference over the life of your loan.

A lower interest rate means you’ll pay less in total finance charges, potentially saving you thousands of dollars over a standard 60- or 72-month loan term. For example, a buyer with excellent credit may secure a rate as low as 4%, while someone with poor credit could see rates of 10% or higher. Over time, this gap adds up — affecting your monthly payment and the total cost of your vehicle.

This is why understanding where your credit score stands before applying for financing is so important. Knowing your score helps set realistic expectations, lets you plan your budget accurately, and can give you time to improve your credit if needed before starting the car-buying process.

Impact on Loan Approval and Terms

Your credit score doesn’t just impact the interest rate — it also influences whether you’ll be approved for a loan in the first place, and under what conditions.

Buyers with higher credit scores are often offered:

• Longer loan terms (which can lower monthly payments)

• Higher loan amounts (allowing more flexibility in vehicle choice)

• Access to special financing programs, including 0% APR offers or no-down-payment deals

Meanwhile, if your credit score falls into the fair or poor range, lenders may offer more limited terms. You may be approved for a shorter loan length, meaning higher monthly payments but faster loan payoff. Or, you might qualify for a smaller loan amount, requiring a larger down payment or choosing a less expensive vehicle.

At Starling GMC Titusville, we work with a wide network of lenders to help connect buyers to financing options suited to their credit profile. Even if you’re concerned about your score, our team can help you explore solutions — including recommending vehicles that fit comfortably within your budget.

Credit Score vs. Down Payment Size

If your credit score isn’t where you’d like it to be, don’t worry — a larger down payment is one of the most effective ways to strengthen your loan application and improve your approval chances.

A higher down payment reduces the total amount you need to borrow, which lowers the lender’s risk. This can often help you:

• Qualify for better interest rates, even if your credit score is lower

• Be approved for a more expensive vehicle than you might otherwise qualify for

• Reduce your monthly payments, since you’re financing a smaller portion of the car’s price

For buyers with fair or poor credit, saving for a larger down payment is often one of the smartest financial strategies. Even putting down 10% to 20% of the vehicle’s price can make a noticeable difference in your loan terms.

At Starling GMC Titusville, our finance team will work with you to find the right balance — whether that means adjusting your down payment, exploring co-signer options, or helping you qualify for manufacturer-backed financing programs.

Minimum Credit Score Requirements by Financing Option

Not all financing options are the same — and neither are the credit score requirements that come with them. The type of lender you work with can have a big impact on both your loan approval and the terms you’re offered. Here’s what you need to know about the most common financing options available when buying a car in 2025.

Traditional Bank Auto Loans

Banks tend to have the most straightforward credit score requirements, often preferring borrowers with a score of 670 or higher. This range is considered good credit and tells the bank that you’ve managed your finances responsibly.

That being said, if your credit score is slightly lower, you may still qualify — but expect stricter conditions. These might include:

• A higher interest rate

• A larger required down payment

• The need for a co-signer to secure the loan

Traditional banks may also require more detailed documentation, such as proof of stable income, employment history, and debt-to-income ratio.

Dealership Financing

One of the biggest advantages of working directly with Starling GMC Titusville is the flexibility of dealership financing. We partner with a wide variety of lenders — including banks, credit unions, and specialty finance companies — allowing us to help customers with a broader range of credit scores.

In many cases, we can assist buyers with credit scores as low as 580, depending on their financial situation. This is especially true if you have steady income, a reasonable debt load, and a willingness to provide a larger down payment. Best of all, working with our dealership finance team means we’ll handle the loan shopping for you — connecting you to lenders willing to work with your credit profile, saving you time and stress.

Credit Unions and Online Lenders

Credit unions are often a popular choice for buyers with scores in the 620 to 660 range. They’re member-focused, community-based institutions that may offer more personalized service and slightly more flexible loan terms than traditional banks.

Similarly, online lenders have become increasingly competitive and may approve loans for buyers in the 620 range or lower, especially if you can demonstrate strong income and financial stability. It’s always smart to compare rates and terms between your local credit union and dealership financing to find the best fit for your needs.

Buy Here, Pay Here Dealerships

While Starling GMC Titusville focuses on new GMC vehicles and competitive financing options, it’s worth noting that Buy Here, Pay Here dealerships exist for buyers with very poor credit — typically scores below 580.

These dealerships provide in-house financing and may not check your credit score at all. However, the trade-off is much higher interest rates and often older used vehicles. This route may help rebuild credit with consistent on-time payments, but it’s typically viewed as a last-resort option.

Credit Score Ranges and What They Mean

Understanding where your credit score falls within the typical ranges is a key part of preparing for your next car purchase. Your score doesn’t just determine whether you’ll be approved — it also impacts your interest rate, loan terms, and even the type of vehicle you might qualify for.

Here’s a closer look at the standard credit score ranges used by most lenders — and what they usually mean when financing a vehicle.

800+ (Excellent) – Best Terms Available

If your credit score is 800 or higher, you’re in an elite group of borrowers. This score signals to lenders that you have a long history of responsible credit use — paying bills on time, keeping debt low, and managing multiple accounts effectively.

For car buyers in this range, lenders typically offer:

• The lowest possible interest rates

• Access to 0% APR financing offers (when available)

• Highest loan amounts and the most flexible loan terms

• No need for a co-signer

• Easier approval for no-money-down financing

740–799 (Very Good) – Low Interest Rates

Buyers with credit scores between 740 and 799 are in a very strong position. You may not receive the absolute lowest rates, but your offers will still be highly competitive — often very close to what excellent credit borrowers receive.

At Starling GMC Titusville, buyers in this range often qualify for special financing deals, extended loan terms, and reduced down payment requirements.

670–739 (Good) – Competitive Terms

This is considered the average credit score range in the U.S., and many car buyers fall within this bracket. While you may not get the lowest interest rate available, you’ll still have access to affordable financing.

In this range, lenders typically offer:

• Competitive interest rates (often between 5% and 8%)

• Standard loan terms

• Possible access to manufacturer-backed financing deals

• Approval with little or no down payment (depending on other factors like income)

580–669 (Fair) – May Require Higher Down Payment

If your score falls between 580 and 669, you may face higher interest rates — typically between 8% and 15% — but financing is still very possible.

To strengthen your application, you may need to:

• Provide a larger down payment

• Show proof of steady income

• Accept a shorter loan term

• Possibly have a co-signer for better rates

At Starling GMC Titusville, we help many buyers in this range every year — with personalized financing plans designed to work within their budget.

Below 580 (Poor) – Limited Options but Still Possible

A credit score below 580 means financing options are more limited — but that doesn’t mean buying a car is impossible. Many lenders offer special programs for buyers rebuilding their credit.

You may need to:

• Offer a significant down payment

• Provide a co-signer

• Accept higher interest rates

• Choose a more affordable or pre-owned vehicle

Our team at Starling GMC Titusville is committed to helping customers at every credit level — and we’ll guide you through your options honestly and respectfully.

Can You Buy a Car with Bad Credit?

The short answer is yes — buying a car with bad credit is possible, and it happens every day. While a lower credit score might create some extra challenges, it doesn’t have to prevent you from driving home in a reliable vehicle. The key is to understand how lenders view credit risk and to take proactive steps that strengthen your loan application.

At Starling GMC Titusville, we work with many customers who are rebuilding their credit or facing financial hurdles. Our goal is to guide you through the financing process with honesty and practical advice — helping you secure an auto loan that fits your situation and budget.

Let’s look at some of the most effective strategies to improve your chances of approval when buying a car with bad credit.

Tips to Improve Approval Odds

One of the best things you can do before applying for a car loan is to review your credit report. Mistakes happen, and inaccurate information could be lowering your score unnecessarily. Reviewing your report allows you to catch errors early and dispute them before starting the loan process.

Another smart move is to pay down existing debts. Reducing credit card balances or paying off small loans can improve your debt-to-income ratio — an important factor lenders consider when evaluating loan applications. It also shows financial responsibility, which can work in your favor.

Saving for a larger down payment is another powerful tool when buying with bad credit. The more money you can put down upfront, the less risk the lender takes on — and this can sometimes offset a lower credit score. A larger down payment may also help you secure a better interest rate and reduce your monthly payment.

Finally, avoid applying for new credit cards or loans right before you apply for a car loan. Multiple credit applications within a short time frame can negatively impact your score and make lenders nervous about your financial stability.

The Role of Co-Signers

A co-signer can make a significant difference if you’re applying for an auto loan with bad credit. When someone with strong credit agrees to co-sign your loan, it gives lenders additional reassurance that the loan will be repaid. This shared responsibility often results in better loan terms, including lower interest rates and higher chances of approval.

However, it’s essential for both parties to understand what co-signing means. If the primary borrower misses payments or defaults on the loan, the co-signer becomes legally responsible for repaying the debt. Open communication and trust between borrower and co-signer are crucial before moving forward with this option.

Higher Down Payments as Leverage

When credit scores are less than ideal, offering a higher down payment can be one of the most effective strategies to improve your financing options. Putting more money down reduces the total amount you need to borrow, lowers the lender’s risk, and can sometimes help you qualify for a better interest rate despite a lower score.

In addition, a larger down payment may give you access to a wider selection of vehicles, since lenders may feel more comfortable approving loans for higher-priced models when the initial loan balance is smaller.

At Starling GMC Titusville, we always encourage our customers to explore the benefits of a larger down payment when possible — especially when working through credit challenges. It’s a smart way to take control of your financing terms and move one step closer to driving home in the GMC vehicle you want.

Your credit score is just one part of the car-buying process — and at Starling GMC Titusville, we believe it shouldn’t define your ability to drive a safe, reliable vehicle. Whether you have excellent credit, fair credit, or you’re working to rebuild your financial profile, we’re here to help guide you every step of the way.

Our finance team has experience working with customers from all credit backgrounds, and we partner with a variety of trusted lenders who offer flexible solutions tailored to your needs. From competitive interest rates to creative down payment options and personalized loan terms, we’ll work hard to make sure you leave our dealership with a financing plan that fits your budget and your lifestyle.

If you’re ready to explore your options or have questions about how your credit score might affect your next vehicle purchase, we invite you to visit us in person or contact our team today. Let’s start the conversation — and help you get behind the wheel of a new GMC vehicle with confidence.