Mar 19, 2025 / Auto & RV

What Kind of Credit Score Do I Need to Buy a Car?

Got a dream car in mind but aren’t sure what credit score you need to make it yours? Whether it’s your first ride or an upgrade, your credit score plays a role in your loan options — but don’t let that stress you out! No matter where your credit’s at, we have ways of getting you behind the wheel. 

Understanding how credit scores affect auto loans can give you confidence and make the whole process feel easier. At Utah First Credit Union, we’re here to help you find the best path forward — because everyone deserves a chance to drive toward their goals!

What’s a Credit Score, Anyway?

Your credit score is a three-digit number that shows lenders your financial habits and how you’ve handled borrowing money in the past. It helps them determine your loan options and interest rates you might qualify for. Credit scores usually fall between 300 and 850, and the higher your score, the better your credit looks.

But a credit score is only one piece of the puzzle and doesn’t define your financial future! Even better, your score can always change — and there are plenty of easy ways to boost it over time.

Here are the factors that make up your credit score:

  1. Payment History: Do you pay your bills on time? This is a big one!
  2. Credit Utilization: How much of your available credit are you using? Lower utilization can boost your score.
  3. Length of Credit History: The longer you’ve had credit accounts, the stronger your score.
  4. Types of Credit: A mix of credit types — such as credit cards, mortgages, and installment loans — can positively impact your credit.
  5. New Credit Inquiries: Whenever a lender checks your credit report, it can slightly lower your score.

How Your Credit Score Impacts Your Loan

Your credit score affects your loan choices and how much interest you’ll have to pay. 

For example, if your score is 750 or higher, you might be able to land an interest rate as low as 4%. But if your score sits in the 600–649 range, you could be looking at rates of 10% or more. Over five years, a lower rate could save you hundreds of dollars on a $20,000 loan, so it’s definitely worth the effort to boost your credit score!

But even if you have colorful credit, you can still qualify for financing with the right lender. Some offer auto loans for all credit types, which means they look at the bigger picture, not just the numbers, to help you move forward. The trick is to take your time, learn your options, and find a financial partner like Utah First who has your back!

No Credit History? We’ve Got You.

If you’re new to credit and have no history, don’t sweat it. Getting a car loan can still be possible! Here’s how:

  • Subprime Lenders: Some lenders specialize in working with borrowers with limited credit.
  • Co-signers: A co-signer with good credit can help you score better terms.
  • In-house Financing: Some dealerships offer financing, but watch out for those high interest rates. 

Quick Tips to Boost Your Score Before You Buy

Want to make sure you’re getting the best rate? Here are some easy ways to boost your score before you head to the dealership:

  1. Pay Bills on Time: Timely payments impact your score the most.
  2. Lower Credit Utilization: Try to use less than 30% of your available credit.
  3. Check Your Credit Report: Check regularly for mistakes and dispute them ASAP.
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  4. Avoid Opening New Accounts: Hard inquiries can temporarily ding your score, so avoid applying for new credit right before a car loan.

Financing With Utah First

At Utah First, we get that life isn’t one-size-fits-all, and you’re not just a credit score. Whether you’ve got excellent credit or are still building it and looking to qualify for auto loans with any credit type, our competitive rates and flexible terms can meet you where you are in your credit journey.

“Quick, easy, friendly service to open a checking/savings account. When other banks or credit unions wouldn’t give me a chance to open an account due to credit or banking history, Utah First Credit Union gave me a second chance.” – RC-MC 

Want to know more? Let’s talk! Our team is here to chat through the financing process so you understand your options and feel confident about your decision. 

With Utah First, you can take the next step toward owning your car with a loan that works for your needs and budget. Reach out today to get started!