Auto Loans for Bad Credit

Get a bad credit car loan today

free offers in minutes
free offers in minutes
Privacy Secured  |  Advertising Disclosures
 
LenderTermsAmountsBest For
Capital One12-84 months$4,000 and upAuto purchase
Carvana Auto Loan36-72 months$1,000-$85,000Online car buying
New Roads48 - 72 months$6,000 - $38,000Preapprovals
iLendingDIRECT24-84 months$7,500 or moreRefinance loans

 

4 bad credit car loans

A bad credit auto loan is simply a regular auto loan with adjustments based on your credit. That means it may come with a higher interest rate, but there are many companies willing to work with you. To help you sort through the competition and get the best rate for you, we examined more than 500,000 bad credit car loan applications from those with FICO Scores of 619 or lower. These four companies offer a way to get started online with at least preliminary decisions in as soon as a few minutes.


capital one logo

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.

See Offers

Capital One: Best overall for bad credit auto loans

Starting APR:
2.99%

Terms:
12 – 84 months

Amounts:
$4,000+

carvana logo

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.

See Offers

Carvana: Best for completely online car buying

Starting APR:
3.90% – 27.90%

Terms:
72 months

Amounts:
$1,000 – $85,000

new roads logo

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.

See Offers

New Roads: Best for greater flexibility

Starting APR:
11.00% – 26.00%

Terms:
48–72 months

Amounts:
$6,000 – $38,000

ilendingdirect logo

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.

See Offers

iLendingDirect: Best for bad credit auto refinancing

Starting APR:
1.99%

Terms:
24 – 84 months

Amounts:
$7,500 or more

How to get a car loan with bad credit

Look up your score. Yes, you know your credit score is in the poor range, 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. If your score seems suspiciously low, make sure there are no errors on your credit report, which can be checked at AnnualCreditReport.com.

Apply to multiple lenders directly. Bad credit car loans are expensive, so shop around and don’t take the first offer you see. Any applications you fill out within a two-week window will count as only one hard inquiry on your credit report.

Average Car Loan Rates (APR) by Credit Score

Credit ScoreUsedNew
300-50020.24%14.01%
501-60016.40%10.36%
601-66010.13%6.51%
661-7805.72%3.61%
781-8503.84%2.51%
*Source: Experian

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 can make money by increasing your APR. Start with your own bank, credit union or online lender. Then, compare those offers to others you get through platforms like LendingTree, where you could fill out a single form and receive up to five loan offers from lenders, depending on your creditworthiness.

Compare Auto Financing Offers

Increase your chances of getting approved

If you aren’t approved right away, or you’ve been turned down before, you could wait and improve your credit. But if you need a car loan now, consider these options.
  1. Find a cosigner. Ask someone you trust — and who trusts you — who has good credit to cosign the bad credit auto loan for you. By cosigning, they agree to pay back the loan if you default or else take a big hit to their credit score.
  2. Consider buying a car for cash. Used cars are less expensive than new ones and you may be able to buy one for the same amount you’d put down on a new car. Plus, paying cash means a credit check is unnecessary. Read more about when it makes sense to buy a car with cash.
  3. Buy from a private seller, not a dealer. Used cars sold by private sellers are typically less those sold by dealers and can be financed with cash or a private party auto loan.
  4. Use a personal loan. Some personal loans don’t require strong credit and may be used to purchase a car. But rates could be as high — or higher — than a bad-credit auto loan.

See Bad Credit Loan Offers