Since each lender has its own requirements, there’s no industry standard minimum credit score for a car loan. To qualify for APRs under 10%, however, you’ll want to have a credit score of at least 601 for a new car and 661 for a used car.
Written by Amanda Push | Edited by Katie Lowery | Updated March 29, 2024
| Lender | User ratings | Best for… | Starting APR | Loan terms | Loan amounts | |
|---|---|---|---|---|---|---|
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Auto refinancing | 6.49% | Not disclosed | Not disclosed | View Personalized Offers |
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Online car buying | 6.85% | 36 to 72 months | Starting at $5,000 | View Personalized Offers |
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Borrowers with no credit | 5.90% | Not disclosed | Not disclosed | View Personalized Offers |
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Preapprovals | 6.49% | 36 to 72 months | Starting at $4,000 | View Personalized Offers |
Read more about how we chose our picks for best car loans with bad credit.
| Pros | Cons |
|---|---|
Competitive refinancing rates No application fees Option to apply with co-borrower | Only offers refinancing May need to fax some of your loan paperwork Extra verification documents needed if you're self employed |
OpenRoad Lending specializes in auto refinancing and was one of the most popular refi lenders for bad credit on the LendingTree platform in the first quarter of 2023. This lending platform works with borrowers who have a gross monthly income of at least $1,500.
You can refinance a car loan with OpenRoad, but your car must have fewer than 140,000 miles on it and be less than eight years old.
| Pros | Cons |
|---|---|
Process is completely online Option to apply with cosigner Offers autopay discount | Down payment required Auto loan can only be used on Carvana platform History of legal troubles |
Carvana was the most popular lender on the LendingTree car loan marketplace in the first quarter of 2023. Unfortunately, you can’t use a Carvana auto loan for just any car — it can only be used on the e-commerce platform. But if you’re in the market for a used vehicle and credit is a concern, Carvana considers all types of credit profiles and also allows car loan cosigners.
Unfortunately, in the past several years, Carvana has made headlines for its legal troubles, with some states fining the company and even suspending its license.
| Pros | Cons |
|---|---|
Offers financing to borrowers with no credit Can reserve a car for up to seven days Reports to all three major credit bureaus | Borrowing limits aren’t specified Doesn’t allow you to negotiate on car prices No at-home delivery options |
Even if you have little or no credit history, DriveTime still offers financing options that may meet your needs. Plus, DriveTime reports to all three major credit bureaus, which can help build your credit history and improve your credit score as long as you’re making on-time payments.
On the other hand, DriveTime offers no-haggle pricing, so you can’t negotiate the price tag on the car you want to purchase. While this may be good news for car buyers who dislike the negotiation process, you may end up paying a bit more than you would at a traditional dealership.
| Pros | Cons |
|---|---|
Can get preapproved or prequalified online Auto Navigation tool can help you stay within your budget as you shop for a new car Co-applicants allowed | Must purchase from a participating dealership Does not finance private party sales No lease buyouts |
Capital One doesn’t disclose its credit score minimum, but internal LendingTree data shows it may approve you even if you have less-than-perfect credit. It offers preapproved car loans that you can use at one of 12,000 participating dealerships.
The bank’s Auto Navigation tool is also handy. To use it, first you must prequalify and download the Auto Navigation app. Then, you can use the app to shop for a new or used car. As you shop, the app will show you custom estimated payments based on the information you entered during prequalification.
You know you have bad credit, but do you know your exact score right this minute? Credit scores can change within days or even hours, so it’s helpful to know exactly where you stand before applying for an auto loan. The lower your credit score, the higher your interest rates and fees will be, costing you more to take out a car loan than someone with good credit.
If your score seems suspiciously low, make sure there are no errors on your credit report — you can check yours from each of the three major credit reporting bureaus at AnnualCreditReport.com. And if you find any mistakes, you can dispute credit report errors by contacting the bureau(s) directly.
It can be expensive to buy a car with bad credit, so it’s especially important to shop around for competitive auto loan rates and not just take the first offer you get. This could save you money on interest and fees.
FICO Score and VantageScore allow consumers to rate shop. This means that any applications you fill out within a 14- to 45-day window will only count as a single hard credit inquiry on your credit report. You can also check whether you can prequalify for a loan, which allows you to see potential rates, terms, amounts and fees at no impact to your credit — though not all lenders offer this option.
| Credit score | Used | New |
|---|---|---|
| 300-500 | 21.55% | 14.78% |
| 501-600 | 18.89% | 12.28% |
| 601-660 | 14.12% | 9.60% |
| 661-780 | 9.73% | 7.01% |
| 781-850 | 7.66% | 5.64% |
*Source: Experian Q4 2023 data
As you can see, those with the lowest credit scores tend to pay the highest rates, which can add up to thousands more in interest charges over the life of your auto loan. That’s why it’s important to make sure you receive an offer directly from a lender — dealers often make money by inflating your annual percentage rate (APR), the combined cost of your interest rate and fees.
Start with your own bank, credit union or online lender. Then, compare those offers to others you receive through platforms like the LendingTree marketplace, where you could fill out a single form and receive up to five loan offers from lenders, depending on your creditworthiness.
Since each lender has its own requirements, there’s no industry standard minimum credit score for a car loan. To qualify for APRs under 10%, however, you’ll want to have a credit score of at least 601 for a new car and 661 for a used car.
Just as there are different types of auto loans, there are also different types of auto lenders to choose from:
When comparing auto loan offers, it’s important to pay special attention to the interest rates, monthly payments, fees, terms and amounts. These details will determine how much you’ll spend over the life of the loan. In addition, you should consider other details like down payment requirements and any prepayment penalties when comparing loans.