5.75%
24 to 72 months
$500 - $100,000
No minimum credit score
CarMax sells used cars online and in-person at more than 250 stores. As CarMax’s in-house financing arm, CarMax Auto Finance is only available at CarMax dealerships.
CarMax offers some great perks for car buyers. One of them is its Three-Day Payoff Program. If a competitor offers you a cheaper rate within three days of your car purchase, you can back out of your CarMax loan with no extra fees. Plus, you could get your car delivered to your home for free if you live within 60 miles of a CarMax dealership in certain areas.
Since CarMax only sells used cars, a new car is off the table.
CarMax does not have a minimum credit score requirement, but you can only use a CarMax loan to buy a car from a CarMax store.
CarMax does business in 41 states. There are no CarMax stores in:
5.49%
36 to 84 months
$7,500 - $100,000
460
If you want to refinance your car loan with bad credit, consider OpenRoad Lending. OpenRoad’s credit requirements are some of the lowest you’ll find, and you can boost your odds of approval by applying with a co-borrower. Plus, borrowers on the LendingTree marketplace give OpenRoad Lending high marks for customer satisfaction.
OpenRoad only offers car loan refinancing, so you can’t work with OpenRoad to borrow money to buy a car. And if you need to refinance fast, consider other car loan refinancing lenders — OpenRoad’s funding timeline is on the slow side.
To refinance your car loan with OpenRoad, you must meet the following requirements:
5.59%
24 to 84 months
Starting at $4,000
500
If you’re looking to buy a new or used car at a traditional dealership, check out Capital One. Capital One’s Auto Navigator tool allows you to find cars at local dealerships and check your rates at the same time.
Capital One only requires a minimum credit score of 500. However, you can only use Capital One auto loans at select partner dealers.
Capital One requires a credit score of at least 500. The following vehicles are ineligible for financing:
4.85%
24 to 96 months
$2,500 - $100,000
580
If you need to stretch out your payments on a new or used car, consider working with Autopay. In addition to extra-long car loan repayment terms, Autopay also offers prequalification. This allows you to see your potential rates with no impact on your credit score. Plus, while other loans only allow you to buy from a dealership, Autopay offers loans for private party purchases.
Know that Autopay won’t directly fund your car loan — it partners with lenders who offer car loans. And some of those lenders charge fees of up to $400, so you may need to shell out some extra cash to pay for fees.
Autopay connects borrowers to partner lenders and financial institutions. These partners all have different eligibility requirements.
To use the marketplace, you and the vehicle you’re financing must meet the requirements below:
“Don’t just take the first car loan offer you find. Even with bad credit, you can benefit from comparing offers from multiple lenders. It is important to temper your expectations around those loans, of course. With crummy credit, you’re not going to get that sweetheart deal you’re hoping for. However, shopping around can still help you save money.” — Matt Schulz, chief credit analyst
Matt points out that no two loans are alike. Every lender has its own way of calculating rates. Just like insurance, you have to compare rates before you can be confident you’re getting the best deal.
Here are other ways to avoid a lemon of a car loan:
→ If a loan shows a range of possible rates, pay attention to the maximum, not the minimum. Borrowers with a bad credit history tend to qualify for rates on the high end of the range.
→ You might have a high rate, but if you pay your car loan off fast, you can pay less overall interest.
→ Lenders may not be willing to give you a big loan, so consider limiting your search to used cars.
→ Bad credit car loans often come with high documentation (or doc) fees. This can make a car look cheaper than it really is. Ask for the out-the-door price so you know exactly what to expect.
Chief consumer finance analyst |
“Auto loan rates have fallen in recent months, thanks to rate cuts from the Federal Reserve, but that trend may end. The Fed has stopped rate cuts for now.” |
Tariffs are likely going to make car shopping more expensive and if you’re worried about prices, you’re not alone. According to a LendingTree survey, more than 3 in 4 (77%) Americans worry that tariffs will drive up the cost of owning a vehicle. Of those 77%, 40% plan to cut back on the amount they’re driving.
It’s possible to get a car loan with a 500 credit score, but the lender might have other requirements, too. You might also need to earn a certain amount of money or have been at your job for a specific length of time.
The best way to see if you qualify for an auto loan is to prequalify. It doesn’t require a hard credit hit, so prequalifying won’t negatively impact your credit.
There is no standard credit score for buying a car with a loan. Some lenders don’t require a specific credit score at all. But the easier it is to get a loan, the more expensive that loan will probably be. Even if you have bad credit, shop around and compare offers to find the loan that’s best for you.
Generally, buy here, pay here car lots are the easiest places to get car loans. That said, you should look for cheaper options. Buy here, pay here dealerships are often predatory, meaning that their loans are very expensive.
Instead, prequalify online with a few lenders to see if you can find a better option. You can also skip loans altogether and pay cash for a car.
