A well-known national bank, Capital One offered the lowest average closed loan APR for borrowers with subprime credit scores on the LendingTree platform. Capital One doesn’t have a minimum credit score requirement, but there is an income requirement of at least $1,500 monthly. You could get prequalified online at Capital One before going to the dealership, so you’ll have an idea of the terms you qualify for, though you won’t know your exact rate or terms until you apply.
Starting APR:
2.99%
Terms:
12 – 84 months
Amounts:
$4,000+
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 and puts the whole car buying process online. You could shop, buy, finance, trade in your old car and schedule delivery of your new ride, all without seeing a soul. Plus, at $4,000, Carvana also has a lower minimum annual income requirement, making it even more accessible to potential buyers.
Starting APR:
3.90% – 27.90%
Terms:
72 months
Amounts:
$1,000 – $85,000
Capital One and Carvana offered the lowest average APRs to customers on the LendingTree platform, but there are some limitations. Carvana loans can only be used for Carvana vehicles, and while Capital One loans can be used at a wide variety of dealers, it only offers an online prequalification. New Roads, however, offers preapprovals, a firm offer you can take to a dealer of your choice. New Roads offers loans between $6,000 and $38,000 with terms up to 72 months, and also considers borrowers with bad credit or no credit, as well as those with past bankruptcies. It offers loans in 30 states — see the full list here.
Starting APR:
11.00% – 26.00%
Terms:
48–72 months
Amounts:
$6,000 – $38,000
One of several companies offering bad credit auto refinance loans, iLendingDirect has a network of lenders willing to finance cars and trucks, as well as specialty vehicles like motorcycles, RVs and boats. Rates start at 1.99% APR, and a personal consultant will walk you through the process. iLendingDirect is looking for a credit score of 560 or higher from those with car loan balances of $7,500 or more. Available terms range between 24 and 84 months.
Starting APR:
1.99%
Terms:
24 – 84 months
Amounts:
$7,500 or more