What credit score do I need for an auto loan?

Most lenders require a minimum credit score of 580–620 for auto loan approval. However, borrowers with scores of 700 or higher typically qualify for the best interest rates. Even with bad credit, some lenders specialize in subprime auto loans.

What is the average auto loan interest rate?

As of 2026, average auto loan rates range from 5% to 8% for borrowers with good credit (700+). Borrowers with fair credit (600–699) typically see rates between 9% and 14%, while subprime borrowers may face rates of 15% or higher.

How long should my auto loan term be?

Most auto loans range from 36 to 72 months. A shorter term means higher monthly payments but less interest paid overall. A 60-month loan is the most common balance between affordable payments and total cost.

Can I refinance my auto loan to get a lower rate?

Yes. Auto loan refinancing is a smart move if your credit score has improved since you took out the original loan or if interest rates have dropped. Many lenders offer refinancing with no fees, and you could save hundreds or thousands over the life of the loan.

Best Auto Loans for 720 Credit Score (March 2026)

Q: Should I get pre-approved for an auto loan before visiting a dealership?

Absolutely. Getting pre-approved gives you a clear budget, a baseline interest rate to compare against the dealer's offer, and stronger negotiating power. Pre-approval from a bank or credit union typically takes minutes online.

720

Good Credit Range

Auto Loans Options at This Score

What to Expect

Good credit means you qualify for most mainstream products at competitive rates. You have real negotiating power.

WiseIQ Expert Tip

Get pre-approved for an auto loan before visiting a dealership. Pre-approval gives you negotiating power and protects you from dealer financing markups that can add $1,000–$3,000 to your total cost.

Rate Impact

Rates are near prime — typically 0.5–2% above the best available rates.

💡 Top Tip for 720 Credit

Shop multiple lenders and use pre-qualification tools to compare offers without hard inquiries.

Timeline: You're well-positioned. Focus on maintaining your score while building wealth.

720 Good Credit

Last Updated: March 2026 WiseIQ Editorial Team 8 min read

Rate Range

4.99% – 8.49%

Approval Odds

Excellent — near-prime rates

Min. Down Payment

⚠️ Advertiser Disclosure: WiseIQ is reader-supported. We may earn a commission when you click links to our partners. This does not affect our editorial independence or the rates you receive.

← 700 Browse by Credit Score 740 →

720 puts you in near-prime territory. You'll qualify for the best rates at most lenders and may be eligible for manufacturer financing deals and promotional rates.

Our Top Picks for 720 Credit Score

Best Rate at 720

LightStream Auto Loans

APR Range4.99% – 7.99%

Min. Credit Score660

Why we recommend it: LightStream offers some of the lowest auto loan rates in the market for 720+ borrowers, with a rate-beat guarantee and same-day funding.

Check Your Rate →

Best Credit Union

PenFed Credit Union

APR Range5.24% – 8.49%

Min. Credit Score610

Why we recommend it: PenFed's rates for 720 borrowers are among the best available, with no prepayment penalty and flexible terms up to 84 months.

Check Your Rate →

Best Dealer Network

Capital One Auto Navigator

APR Range5.49% – 8.99%

Min. Credit ScoreNone stated

Why we recommend it: Capital One's pre-qualification is soft-pull and their dealer network of 12,000+ makes it easy to use your pre-approval at any dealership.

Check Your Rate →

Frequently Asked Questions

What APR should I expect with a 720 credit score for a car?

720 borrowers typically qualify for 5–8.5% APR. This is near-prime territory. The best rates come from credit unions and online lenders like LightStream.

Am I eligible for 0% financing with a 720 credit score?

Manufacturer 0% APR deals typically require 720–740+. At 720, you're at the threshold — you may qualify for some promotional offers, especially on new vehicles.

How much does a 720 vs 700 credit score save on a car loan?

On a $30,000 loan for 60 months, the difference between 6.5% (700) and 5.5% (720) APR is about $780 in total interest savings.

Sources & Methodology

WiseIQ's editorial team researches and fact-checks all content using primary sources. Our recommendations are based on independent analysis and are not influenced by advertiser relationships.

Consumer Financial Protection Bureau (CFPB) — regulatory data and consumer guidance
Federal Reserve — Consumer Credit Report (G.19) — interest rate benchmarks
AnnualCreditReport.com — official free credit report access
myFICO Credit Education — credit score methodology
Lender and issuer websites — rates, terms, and eligibility verified directly from source

Last reviewed: April 2026 | How we rank products

Best Auto Loans for a 720 Credit Score

LightStream Auto Loans

PenFed Credit Union

Capital One Auto Navigator

Sources & Methodology

People Also Ask