Is 660 a Good Credit Score to Buy a Car?
Learn how a 660 credit score influences your ability to secure a car loan and the terms you might receive.
When considering a significant purchase like a car, understanding your credit score is crucial. A credit score provides a numerical snapshot of your creditworthiness, helping lenders assess lending risk. This score influences whether you qualify for a loan and the terms you might receive.
What a 660 Credit Score Means
Credit scores, such as FICO Scores and VantageScores, typically range from 300 to 850. Scores predict repayment likelihood. A 660 credit score falls into the “fair” or “near prime” category, depending on the scoring model. For instance, FICO considers scores between 580 and 669 to be fair, while VantageScore places scores from 601 to 660 in its near prime category.
A 660 score is not excellent or very good, but it is above the “poor” credit range. Obtaining a car loan with a 660 score is often possible, though terms may not be as favorable as for borrowers with higher scores. Credit score components include payment history, debt owed, credit history length, and credit types. Payment history carries significant weight, as timely payments demonstrate financial responsibility.
How a 660 Score Influences Car Loan Terms
A 660 credit score directly impacts car loan terms. While approval is likely, interest rates will be higher than for borrowers with excellent credit. For new cars, borrowers with nonprime credit (601-660 VantageScore range) saw average interest rates around 9.83% in the first quarter of 2025, while those with prime credit (661-780) had rates closer to 6.70%. For used cars, the rates are even higher, with nonprime borrowers facing an average of 13.74% compared to prime borrowers at 9.06%.
Higher interest rates increase the total cost of the car over the loan term. Even a few percentage points in APR can add hundreds or thousands of dollars to the total amount paid. For example, a borrower with a 650 credit score on a $20,000, five-year used-car loan might pay approximately $7,760 in interest over the life of the loan. This contrasts with lower rates and more favorable terms for those with scores above 780, who are in the superprime category and receive the lowest interest rates.
Additional Factors in Car Loan Approval
While a credit score is a primary consideration, lenders evaluate a comprehensive financial picture for car loan approval and terms. Income and employment stability are important, as lenders seek a consistent source of funds for monthly payments.
A borrower’s debt-to-income (DTI) ratio is also reviewed, comparing monthly debt payments to gross monthly income. A lower DTI ratio, below 40%, indicates less financial strain and is preferred by lenders. A larger down payment also reduces the loan amount and lender’s risk. The vehicle’s value and age also influence the loan, with newer cars securing better terms due to higher resale value.
Getting Ready to Apply for a Car Loan
Before submitting a car loan application, take several preparatory steps. Obtain your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion). You are entitled to a free annual copy from each bureau through AnnualCreditReport.com. Review these reports for inaccuracies or errors and dispute them promptly, as mistakes can negatively impact your score.
Gather the necessary financial documents and information that lenders typically require for an application, including:
Proof of income, such as recent pay stubs or W-2s.
Proof of identity, like a driver’s license.
Proof of residence, such as utility bills or bank statements.
Vehicle information, including make, model, year, and VIN.
Proof of insurance, which lenders will require before finalizing the loan.
Explore pre-qualification or pre-approval for a car loan before visiting a dealership. Pre-qualification provides estimated loan terms without a hard credit inquiry, which does not affect your score. Pre-approval, while involving a hard inquiry that may slightly impact your score, results in a firm offer for a specific loan amount and interest rate. These steps help you understand your borrowing power and potential rates, providing a stronger negotiating position at the dealership.