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Things Everyone Should Know About Car Loan With A 650 Credit Score

  • Credit Score
  • Natasha Young
  • 5 minutes

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Buying an automobile is a significant financial commitment, and knowing your credit score can help you start off on the right foot. “What credit score do you need to get a good deal on an auto loan?” is a better question to ask than “What credit score do you need to buy a car?” A fair credit score of 650 is usually enough to get a car loan. Read to know more on how to get a car loan with a 650 credit score. 


Depending on your circumstances, refinancing a car loan may be a good idea. If you need a lower monthly payment or want to lock in a lower interest rate, refinancing may be an option. According to Experian’s 2022 report, the average credit score of people financing cars increased slightly from the previous year. The report also discovered: 

The average credit score for a used car loan or lease was 669, while the average score for a new-car loan or lease was 736. Nearly 65% of cars financed were for borrowers with credit scores of 661 or higher. Borrowers with scores between 501 and 600 accounted for approximately 15% of all financing, while those with scores below 500 received approximately 2%. 

Putting down a larger deposit, shopping around for financing, and bringing in documents demonstrating a good payment history on other large purchases may help you repair your credit. A lower credit score will not prevent you from obtaining a car loan, but it may increase your interest rate, resulting in higher payments. 

650 credit score

What is a 650 credit score? 

Credit score range  Risk category  Description 
781–850  Super prime  For borrowers with  an excellent credit 
661–780  Prime  For borrowers with  a good credit 
601–660  Nonprime or near prime  For borrowers with  a fair credit 
501–600  Subprime  For borrowers with  a poor credit 
300–500  Deep subprime  For borrowers with  a poor credit 

Is it possible to get a car loan with a credit score of 650? 

Obtaining a car loan with a 650 credit score is possible and occurs frequently among borrowers with fair credit. According to Experian, 14% of new car loan borrowers and 22% of used car loan borrowers had near-prime credit scores ranging from 601 to 660 in the fourth quarter of last year.  

According to Equifax, lenders originated more than 4 million auto loans and leases to consumers with subprime credit scores below 620 in 2021. Some of the major credit scoring models, such as VantageScore 4.0 and FICO Scores, have a range of 300 to 850. A credit score of 650 is considered near prime, nonprime, and fair. 

In short, a car loan with a credit score of 650 is possible, but the majority of car loan borrowers in Q4 2021 had a credit score above 660. 

Credit score  Average APR, new car  Average APR, used car 
Superprime: 781-850.  2.40%.  3.71%. 
Prime: 661-780.  3.56%.  5.58%. 
Nonprime: 601-660.  6.70%.  10.48%. 
Subprime: 501-600.  10.87%.  17.29%. 
Deep subprime: 300-500.  14.76%.  20.99%. 

Source: Experian Information Solutions

Auto loan interest rates with a 650 credit score 

According to Experian data, near-prime borrowers had an average car loan rate of 6.07% on new vehicle financing and 9.80% on used vehicle financing in Q4 2021. When financing a new vehicle, lenders typically offer lower auto loan interest rates. 

As a consumer, you may be wondering when it is appropriate to refinance an auto loan. If you can get a lower interest rate or a lower monthly payment, refinancing may be right for you. 

650 credit score auto loan conditions 

In Q4 2021, borrowers with near-prime credit had an average car loan term of 74 months for new vehicle financing. According to data, the average car loan term for near-prime borrowers who obtained used vehicle financing in that quarter was 68 months. 

Consumers with a credit score of 650 or higher fall into the near-prime credit risk category. The length of a car loan can range from one year to more than 85 months. When compared to shorter terms, longer terms may have higher interest rates and lower monthly payments. 

Repayment schedule 

Auto loan terms ranging from a few years to more than 85 months may be available to consumers with a 650 credit score. Your loan repayment schedule is determined by the term length. A fixed-rate car loan with a five-year term, for example, would have 60 fixed monthly payments. Borrowers must make payments on time for the duration of the loan.


Save on car expenses with way | 650 credit scoreHow can you build your credit? 

Paying bills promptly. A payment that is 30 days past late will wreak havoc on your credit score, so be sure to make at least the minimum payment on time. 

Maintaining low credit card balances relative to credit limits. Your credit utilization has a significant impact on your credit score. It refers to how much of your available credit you are utilizing. You can use a variety of strategies to decrease your credit utilization in order to improve your credit score.  

Avoid seeking more credit within six months of an auto loan application. Maintaining open credit card accounts is absent a good reason to terminate them. Closing accounts lowers your total credit limit, which might negatively affect your credit utilization. 

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