Best Bad Credit Car Loans and Auto Lenders (Apr 2024) (2024)

Lending Partner

Loan Term

Min. APR

Min. Credit Score


Used Car LoanBest Bad Credit Car Loans and Auto Lenders (Apr 2024) (1)

Loan TermUp to 72Months


Credit Score500


  • Great for customers with limited/no credit
  • Offers special military rates
  • A+ BBB rating

Used Car LoanBest Bad Credit Car Loans and Auto Lenders (Apr 2024) (2)

Loan Term12-84Months


Credit Score575


  • Below-average credit scores accepted
  • Great interest rates
  • Smooth and easy online experience

Refinance LoanBest Bad Credit Car Loans and Auto Lenders (Apr 2024) (3)

Loan Term24-84Months


Credit Score510


  • No application fee
  • Lending platform that partners with banks
  • Approval and loan terms based on many variables, including education and employment

All APR figures last updated on 4/30/2023 – please check partner site for latest details. Rate may vary based on credit score, credit history and loan term.

Best Car Loans for Bad Credit

From our extensive research, we found the best car loans for bad credit are offered by myAutoloan, Ally, AutoPay, Prestige Financial, Capital One, Carvana, Carmax, Credit Acceptance Corp, and New Roads. Each company offers low minimums for both income and credit score as well as affordable rates for purchase loans and auto refinancing with bad credit.

Compare Bad Credit Auto Loan Companies

The table below breaks down the companies with the best auto loans for bad credit. To make for an easy comparison, we’ve highlighted each lender’s minimum-required credit scores and annual incomes for prospective recipients. You’ll also find whether these lenders offer car loan pre-approval:

Subprime Auto LenderStarting APRMinimum
Credit Score
Annual Income
Ally4.74%580$24,000 No
AutoPay5.69%575Not specifiedYes
myAutoloan6.99%575$21,600 Yes
Prestige FinancialVariesNoneNot specifiedYes
Capital OneVariesNone$18,000 No
CarvanaVariesNone$10,000 No
CarmaxVariesNoneNot specifiedNo
Credit Acceptance Corp.VariesNoneNot specifiedYes
New RoadsVariesNoneNot specifiedYes

Bad Credit Auto Loans: Top 3 Lenders

From our list of nine providers, we narrowed down the top three subprime auto lenders. While we recommend these lenders, it is best to compare multiple auto loan providers to find the best deal.

To help you begin comparing, we’ll break down our picks for best bad-credit car loan providers in the sections below. We’ll also cover their loan details and customer reviews.


Starting APR: 6.99% for new cars, 7.24% for used cars
Loan amounts: $8,000 minimum for most loans ($5,000 for refinance)
Loan terms: 24 to 72 months
Availability: 48 states (not available in Alaska or Hawaii)
Minimum credit score: 575
Pre-approval/Prequalification: Only pre-approval offered

The myAutoloan marketplace allows you to compare when you shop for new and used auto loans, refinance auto loans and lease buyout loans. Since myAutoloan functions as a marketplace for lenders and has a minimum credit score requirement of 575, it offers more opportunities for loan approval.

myAutoloan Reviews

MyAutoloan has overall positive reviews from customers and sports an overall rating of 4.1 out of 5.0 stars on Trustpilot from over 850 people. The company is also accredited with the Better Business Bureau (BBB) and has an A+ score from the organization. The main things customers talked about were myAutoloan’s fast and transparent online process and its helpful service agents.

Read more: myAutoloan review


Starting APR: 4.67%
Loan amounts: $2,500 to $100,000
Loan terms: 24 to 96 months
Availability: 50 states
Minimum credit score: 575
Pre-approval/Prequalification: Both offered

AutoPay is an auto refinance and lease buyoutspecialist. Rates start at 4.67% APR for refinancing, though only borrowers with high credit scores will qualify for the best auto loan rates. People with bad credit who want to refinance their vehicle loans may get approved by AutoPay, as the company has a minimum credit score requirement of 575.

AutoPay Reviews

Among customers, AutoPay has stellar customer service reviews. On Trustpilot they scored 4.7 out of 5.0 stars from just over 500 reviews, and on the BBB website they received a rating of 4.6 out of 5.0 from over 800 customers.

On both sites, the company was praised by customers for having agents that went the extra mile and for having an overall streamlined process.


Starting APR: 4.74%
Loan amounts: $1,000 to $300,000
Loan terms: 36 to 75 months
Availability: 48 states (not available in Nevada, Vermont or Washington, D.C.)
Minimum credit score: 580
Pre-approval/Prequalification: Only prequalification offered

Ally is one of the largest car finance companies in the U.S. The lender offers loans on new or used vehicles, auto loan refinancing and lease buyout services. According to our research, APRs for refinancing start as low as 4.74% and loan terms of up to 75 months are available. Ally has a minimum credit score requirement of 580, making it easier for those with subprime credit to get approved.

Ally Reviews

When it comes to Ally, customer reception tends to be on the negative side. They scored a 1.5 out of 5.0 from Trustpilot reviewers and a 1.1 out of 5.0 on the BBB site. However, it should be noted that these are based on very few reviews which don’t represent Ally’s large customer base.

Where Can I Get Car Loans With Bad Credit?

Even if you have bad credit, you have several auto financing options to choose from — you just need to find the right lender for your situation. There are four main types of lenders you can reach out to:

Online lendersOnline lenders are convenient because you can find out whether you have been approved for a new loan within minutes. They may also provide you with a lower interest rate since they have lower overhead costs.

These lenders are also more likely to offer pre-approval so you can get an idea of your loan payment and interest rate before you make a purchase.

BanksMany national and local banks offer car loans. However, some banks may only allow you to get a loan through dealer-arranged financing.
Credit unionsMost credit unions offer car loans with low interest rates. You may be able to apply for a car loan directly or through a dealership. The only downside is that you may have to be a member of the credit union to qualify for its offerings.
Car dealershipsDealerships tend to offer their own financing options, or they will shop around for you through dealer-arranged financing.

According to our research, here is where customers are getting their auto loans from in 2023:

Best Bad Credit Car Loans and Auto Lenders (Apr 2024) (5)

Getting an Auto Loan With Bad Credit

Getting an auto loan with bad credit can be a difficult venture that often comes with many application denials. Even if you’re approved, you’ll typically get high interest rates. The sections below will walk you through the process of getting a car loan with bad credit and the resources you’ll need when applying for any loan.

How To Get a Car Loan With Bad Credit

When searching for a bad-credit car loan, here are some best practices to follow before applying:

1. Check Your Credit

The first step to getting any auto loan is to check your credit score — especially if you think you have bad credit. Knowing can help you set expectations of what rates you may receive and gauge whether a lender is giving you a good deal.

It’s also good to get a free credit report so you can check for any inaccuracies that may be lowering your score. You can request a free report from Experian and Equifax to review your information before moving forward. In the graphic below, you’ll see a breakdown of the factors that affect your credit score, and how much they affect your score.

Best Bad Credit Car Loans and Auto Lenders (Apr 2024) (6)

2. Determine What You Can Afford

By keeping track of what’s left after payments for rent or mortgages, food, utilities, services and any other loans you have, you’ll have a much stronger idea of how much you can afford for a car loan. You’ll also know which terms you’d need in an auto loan contract and which cars you could afford.

You can use an auto loan calculator to estimate monthly car payments and experiment with different rates, term lengths and down payments to find what works best for you.

3. Gather Required Information

To apply for a car loan, you’ll need to have certain information handy, including your:

  • Name, address and phone number
  • Social Security number
  • Credit score
  • Gross annual income information
  • Vehicle information (such as the model, age and mileage of the vehicle you want to buy or refinance)

Some financial institutions may also ask for additional information before a loan is approved, like your pay stubs, driver’s license or personal references.

4. Apply for Pre-Approval

Applying for pre-approval can give you the best chance to get approved for an auto loan with bad credit. A pre-approval will give you a conditional loan offer with estimated rates and terms that you’ll most likely receive. Having an offer in hand is something you can use to negotiate with other lenders for better deals. It can also help you feel more confident about what to expect when shopping around.

Keep in mind that auto loan pre-approval results in a hard credit check which can lower your credit score temporarily. We also recommend not applying for multiple pre-approvals at the same time — so you can avoid being treated as an inquiry.

5. Compare Lenders

Compare providers when searching for the best bad credit auto loan for your situation. Try looking for lenders that specialize in bad credit financing along with those with low credit score and income requirements. Also, shop around with multiple types of lenders to give yourself the best chance of getting favorable rates and terms.

Auto Loan Calculator

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Refinance Calculator

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New Loan Terms in Months 12

* The calculators used on this website are being provided for educational purposes only. Data will not be collected or stored. The results are estimates based on information you provide and may not reflect actual pricing of your quote.

How To Get Approved for a Bad-Credit Car Loan

When you apply for a standard used or new car loan or refinance loan, you may not be approved the first time if you have a bad credit history. Here are some tips that can help you increase your chances of getting approved by an auto loan lender:

Apply With a Co-Signer

You can ask someone with a strong credit report who you trust to co-sign a bad credit auto loan. By co-signing, the person agrees to pay back the loan if you default. This allows you to take advantage of lower interest rates that you would otherwise not get.

Buy a Car With Cash

If you can afford to buy a vehicle with cash, it might be your best option — even if it’s not the car of your dreams. Owning a car outright means you don’t risk repossession. Since you don’t owe any money on the vehicle, it can be considered a financial asset rather than a liability. This can help bring your credit score up for future car shopping.

Make a Large Down Payment

If you make a large down payment when purchasing your used or new car, it will decrease the loan amount. This makes it more likely that a lender will approve your loan since it’s reducing the overall risk.

Buy From a Private Seller

If you’re looking to buy a used car, you’ll typically pay less by buying from a private seller rather than a dealership. These purchases can be financed with a personal loan or a private party auto loan.

Improve Your Credit Score

Raising your credit score takes time, so it won’t help you get car financing in the short term. But increasing a poor credit score by paying off credit cards and always making monthly payments on time will eventually improve your FICO® score. As your score increases, it will open the way to getting better rates and increase your chances of getting approved.

Bad Credit Auto Loan Interest Rates

For those with bad credit, average auto loan rates range from 11.53% to 21.32% on average for new and used vehicles. Subprime or bad credit is typically reflected in a FICO score of 579. If your credit score falls below this threshold, a lender may assume an inability to pay bills on time and can result in higher interest rates or a lack of loan eligibility.

What Is a Good APR for a Car Loan With Bad Credit?

A good APR for a car loan with bad credit depends mostly on the average interest rate for your credit score band. For example, if you fall into the fair category on the FICO credit score model and are looking for a new car, a rate below 11.53% would be a good deal. It’s best to gauge whether you’re getting a favorable APR off your own unique financial situation.

Current Average Auto Loan Rates

The tables below show average auto loan interest rates by credit score for new and used cars, according to Experian’s State of the Automotive Finance Market Q1 2023 report:

Best Bad Credit Car Loans and Auto Lenders (Apr 2024) (7)

Car Loans For Bad Credit: Conclusion

If you have bad credit, you still have options for auto loans. You can get bad-credit car loans from a number of banks, credit unions, dealerships and online lenders. Typically, you’ll pay a higher interest rate, but you don’t have to settle for the first offer you come across. Even with our top picks in mind, we recommend that you shop around and compare providers to find the best auto loan for you.

Auto Loans For Bad Credit: FAQ

Below are some frequently asked questions related to bad credit auto loans:

After researching the car finance industry, we think that myAutoloan is best for those with bad credit. The company offers auto refinancing, lease buyouts and loans for new and used cars. Additionally, the marketplace only requires a credit score of 575 — making it easier for subprime borrowers to get a loan.

Getting a car loan with a 500 credit score is possible, but it depends on the provider. Some auto lenders will work with you if you have a bad credit score, while others will not consider your loan application. Consider lenders that specialize in bad-credit car loans.

Most auto loan lenders will approve a borrower who has a credit score of 690 or higher, but there is no set minimum. This score range is typically considered “good credit.” To get a better idea of your approval chances, find out a lender’s minimum credit score requirement for a car loan before applying.

On the FICO Score model, a subprime credit score is a range from 600 to 660 and below that is considered deep subprime. Car loan seekers with these credit scores are considered to have bad credit and will have much higher interest rates for their loans.

Typically, used vehicles are easier to purchase with a bad or subprime credit score. However, how easy it will be to get a car loan depends on the lender. That’s why it’s best to compare different vehicles and all available options before making a decision.

Lenders will ask for your Social Security number, work history, credit score and gross annual income information when you apply for a loan. They may also ask for additional supporting documents, like personal references or pay stubs.

How We Rated Bad Credit Car Loan Lenders

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best auto loan companies. We collected data on dozens of loan providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the companies that scored the most points topping the list.

Here are the factors our ratings take into account:

  • Reputation: Our research team considered ratings from industry experts and each lender’s years in business when giving this score.
  • Rates: Auto loan providers with low APRs and high loan amounts scored highest in this category.
  • Availability: Companies that cover a variety of circ*mstances are more likely to meet consumer needs.
  • Customer experience: This score is based on customer satisfaction ratings and transparency. We also considered the responsiveness, friendliness and helpfulness of each warranty company’s customer service team based on our shopper analysis.

Our credentials:

  • 300+ hours researched
  • 25 companies reviewed
  • 2,000+ consumers surveyed

*Data accurate at time of publication.

Best Bad Credit Car Loans and Auto Lenders (Apr 2024) (10)

Daniel RobinsonWriter

Daniel is a MarketWatch Guides team writer and has written for numerous automotive news sites and marketing firms across the U.S., U.K., and Australia, specializing in auto finance and car care topics. Daniel is a MarketWatch Guides team authority on auto insurance, loans, warranty options, auto services and more.

Best Bad Credit Car Loans and Auto Lenders (Apr 2024) (11)

Rashawn MitchnerManaging Editor

Rashawn Mitchner is a MarketWatch Guides team editor with over 10 years of experience covering personal finance and insurance topics.

Best Bad Credit Car Loans and Auto Lenders (Apr 2024) (2024)


Best Bad Credit Car Loans and Auto Lenders (Apr 2024)? ›

In March 2024, automotive site listed the average car loan interest rate for February 2024 as 7.1% APR for new car loans and 11.6% APR for used car loans.

What's a good interest rate for a car in 2024? ›

In March 2024, automotive site listed the average car loan interest rate for February 2024 as 7.1% APR for new car loans and 11.6% APR for used car loans.

What is the highest APR for a bad credit car loan? ›

Auto loan interest rates by credit score
Credit scoreAverage APR, new carAverage APR, used car
Nonprime: 601-660.9.60%.14.12%.
Subprime: 501-600.12.28%.18.89%.
Deep subprime: 300-500.14.78%.21.55%.
Source: Experian Information Solutions.
2 more rows
Feb 29, 2024

Who is the easiest to get a car loan from? ›

The best car loans for bad credit
  • Best for shopping around: myAutoloan.
  • Best for buying a car online: Carvana.
  • Best from a big bank: Capital One Auto Finance.
  • Best for used vehicle selection: CarMax Auto Finance.
  • Best for refinancing: Autopay.

What bank has the lowest APR for auto loans? ›

Compare Car Loan Rates
Top Auto Loan LenderLowest APRTerm Length
PenFed Credit Union5.24%36 to 84 months
Auto Approve5.24%**12 to 84 months
Consumers Credit Union6.54%Up to 84 months
Auto Credit ExpressVariesVaries
2 more rows

Will auto loan interest rates go down in 2024? ›

The lowest auto loan rate in 2023 was 6.15 percent for a four-year used car loan in mid-January. Bankrate's expert predicts five-year new car loan rates will reach an average of 7.0 percent and four-year used car loans, 7.5 percent by the end of 2024.

Will it be better to buy a car in 2024? ›

"2024 is probably the best year since the pandemic to buy a new car," Mark Schirmer, director of industry insights at Cox Automotive, told ABC News. "2021 and 2022 were really difficult years. Dealers are talking about discounts again ... this was not happening 18 months ago.

What credit score do you need for 0% APR on a car? ›

Lenders want to ensure you have a near-perfect history of making payments and handling your debt before offering you no-interest financing. An excellent credit score — 781 or higher — will get you the best deal on financing, but you can still qualify for a competitive interest rate if your score is 670 or higher.

What is a good APR for bad credit? ›

Average credit card interest rates by credit score
Credit ScoreAverage Effective Interest Rate (EIR)
Deep Subprime (Credit score of 579 or below)23%
Subprime (Credit score of 580 to 619)22%
Near Prime (Credit score of 620 to 659)20%
Prime (Credit score of 660 to 719)18%
3 more rows

Can I get 0 APR with 750 credit score? ›

The exact credit score you might need to qualify for a 0% APR loan varies depending on your situation. Many lenders require a minimum score of at least 700. Others require excellent credit scores, such as 720, 750, or even 800.

What is the easiest car to get approved for with bad credit? ›

Automakers such as Ford, Kia, and Hyundai are known for working with borrowers who have lower credit scores. In addition, CarsDirect has a network of dealers that specialize in bad credit car loans whether you're considering a new or used car.

What bank is best to get a car loan? ›

Best rates for new-car loans: Bank of America and PenFed Credit Union. Loans for new cars typically have lower interest rates than used-car loans, so you may already be on track to score a better auto loan rate. Among all of the lenders we reviewed, Bank of America and PenFed Credit Union are our top choices.

Can I get a car loan with a 500 credit score? ›

Yes, it is possible to get a car loan with a credit score of 500, but it can be infinitely more challenging to find a lender willing to approve the loan. A credit score of 500 is considered poor credit, and lenders will likely see you as a higher risk borrower.

What cars have the best interest rates right now? ›

The Best Auto Loan Rates For New Cars (April 2024)
  • 0% Financing: Mazda CX-30 and CX-50, Kia EV9, EV6, Niro EV, Nissan Ariya; Subaru Solterra; Ford Edge; Ford Mustang Mach-E; VW Tiguan.
  • 0.9% APR: GMC Terrain, Honda Ridgeline, Kia Sorento, most Buick models.

What credit score do you need for the lowest APR? ›

Payment history is weighed the most heavily in determining your credit score, along with your total outstanding debt. Generally, borrowers need a credit score of at least 610 to 640 to even qualify for a personal loan. To qualify for a lender's lowest interest rate, borrowers typically need a score of at least 800.

What time of year are auto loan rates lowest? ›

For the lowest APR on an auto loan, December is the best time to buy. Buying in December could mean knocking 1 to 2 percentage points off your APR and saving money on the cost of repayment.

Will interest rates still be high in 2024? ›

Mortgage rates are expected to decline when the Federal Open Market Committee cuts the benchmark interest rate, which is likely to happen in the second half of 2024. But as long as inflation runs hotter than the Fed would like, rates will remain elevated at their current levels.

Will used car prices go down 2024? ›

Retail used car prices are falling slowly in 2024

In early 2024, used car prices are holding steady, even as new car prices drop quickly. Hybrid and EV prices remain elevated above the overall market, but the gap is narrowing.

What is a good interest rate for a 72 month car loan? ›

What is a good interest rate for a 72-month car loan? An interest rate under 5% is a great rate for a 72-month auto loan. However, the best loan offers are only available to borrowers who have the best credit scores and payment histories.

Will car leases go down in 2024? ›

In 2024, lease returns are expected to rise then fall. Experian predicts, “retail leasing returns will rise to 1.1 million in the second quarter of 2024, but then fall to only 640,000 by the end of that year.” So, if you're hoping to buy a pre-owned car in 2024, look around April to early summer for the best selection.


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