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Best bad credit auto loan rates for May 2025

Written by
Rebecca Betterton
Edited by
Kellye Guinan
Updated Mar 06, 2025

What to know first: We selected the best auto loans for borrowers with bad credit based on interest rates, terms, transparency, and flexible eligibility requirements. While a bad credit auto loan is technically no different from a normal loan, you can expect higher interest rates.

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USED

myAutoLoan: Best for fair credit borrowers

4.0
Bankrate Review
APR from
6.74%
Loan term
2-7 yrs
Loan amount
Starting at $8,000
Min credit score
600
See ratesArrow Right

Apply on partner site

NEW

Auto Credit Express: Best for low-income borrowers

3.6
Bankrate Review
APR from
Varies by lender
Loan term
2-7 yrs
Loan amount
$5k-$45K
Min credit score
Not disclosed
See ratesArrow Right

Apply on partner site

REFINANCE

Auto Approve: Best for loan comparison

4.2
Bankrate Review
APR from
4.99- 19.99%
Loan term
1-8 yrs
Loan amount
$10k-$150K
Min credit score
600
See ratesArrow Right

Apply on partner site

REFINANCE

Autopay: Best for initial car loan refinance comparison research

4.5
Bankrate Review
APR from
4.85%
Loan term
1-8 yrs
Loan amount
$2.5k-$100K
Min credit score
580
See ratesArrow Right

Apply on partner site

REFINANCE

myAutoLoan: Best for comparing rates with good credit

4.0
Bankrate Review
APR from
4.95%
Loan term
2-7 yrs
Loan amount
$5k-$120K
Min credit score
600
See ratesArrow Right

Apply on partner site

REFINANCE

Caribou: Best for fair credit loan comparison

4.5
Bankrate Review
APR from
4.39- 28.55%
Loan term
2-7 yrs
Loan amount
$5k-$125K
Min credit score
600
See ratesArrow Right

Apply on partner site

USED

Auto Credit Express: Best for low-income borrowers

3.6
Bankrate Review
APR from
Varies by lender
Loan term
2-7 yrs
Loan amount
$5k-$45K
Min credit score
525
See ratesArrow Right

Apply on partner site

NEW

Cars Direct: Best for poor credit borrowers

3.8
Bankrate Review
APR from
Not Specified
Loan term
2-6 yrs
Loan amount
$25k-$250K
Min credit score
Not disclosed
See ratesArrow Right

Apply on partner site

REFINANCE

RefiJet: Best for customer support

4.1
Bankrate Review
APR from
5.29- 21.99%
Loan term
2-8 yrs
Loan amount
$5k-$150K
Min credit score
500
See ratesArrow Right

Apply on partner site

REFINANCE

iLending: Best for poor credit refinancing

4.5
Bankrate Review
APR from
5.49- 19.24%
Loan term
1-8 yrs
Loan amount
$2.5k-$100K
Min credit score
560
See ratesArrow Right

Apply on partner site

REFINANCE

LendingClub: Best for auto refinance

4.1
Bankrate Review
APR from
4.99- 24.99%
Loan term
2-7 yrs
Loan amount
$4k-$55K
Min credit score
300
Read our reviewArrow Right

Apply on partner site

NEW

Tenet: Best for specialized EV loans

4.1
Bankrate Review
APR from
5.99- 16.20%
Loan term
3-7 yrs
Loan amount
$15k-$95K
Min credit score
Not disclosed
Read our reviewArrow Right

Read review on Bankrate

NEW

Best for initial comparison research for a new car loan

3.9
Bankrate Review
APR from
4.85%
Loan term
1-6 yrs
Loan amount
$8k-$150K
Min credit score
Not disclosed
See ratesArrow Right

Apply on partner site

NEW

myAutoLoan: Best for fair credit borrowers

4.0
Bankrate Review
APR from
6.49%
Loan term
2-7 yrs
Loan amount
Starting at $8,000
Min credit score
600
See ratesArrow Right

Apply on partner site

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A closer look at our top picks for bad credit auto loans

Rating: 4.5 stars out of 5
4.5
Bankrate review
See personalized rates

Overview: Autopay is an online marketplace showcasing loans from banks, credit unions and other lending institutions. The convenience of comparing multiple offers can help you get the best deal with bad credit.

Read Bankrate's Expert Autopay Review
Fixed APR
4.85%
Loan amount
$2.5k– $100k
Min credit score
580
Est. APR
4.85%
Loan amount
$2.5k–$100k
Min credit score
580
Loan term
1-8 yrs
Origination fee
Not specified
Pros
  • Large network of lenders
  • Co-applicants allowed
  • Ability to compare multiple loans
Cons
  • Lowest APR only for excellent credit borrowers
  • Unspecified credit requirements
  • Possible down payment
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an Autopay loan. Autopay is also a good match for people who prefer access to customer service seven days a week.
Rating: 4 stars out of 5
4
Bankrate review
See personalized rates

Overview: Serving as an aggregator, myAutoLoan, makes it easy to compare potential rates and caters to a range of borrowers. It only requires a minimum credit score of 600 and offers both purchase and refinance loans. 

Read Bankrate's Expert myAutoLoan Review
Fixed APR
6.49%
Loan amount
Starting at $8,000
Min credit score
600
Est. APR
6.49%
Loan amount
Starting at $8,000
Min credit score
600
Loan term
2-7 yrs
Origination fee
Not specified
Pros
  • Flexible acceptance criteria
  • Fast funding
  • Transparent rates
Cons
  • Limited state availability
  • Online-only customer support
  • High minimum loan amount
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an MyAutoLoan loan. MyAutoLoan is also a good match for people who prefer access to customer service seven days a week.
Rating: 4.3 stars out of 5
4.3
Bankrate review
See personalized rates

Overview: Carvana is an online car buying and financing option that allows drivers to purchase directly from its website. It does not have perfect credit requirements, and you can view loan options without a hard credit pull. 

Read Bankrate's Expert Carvana Review
Fixed APR
7.40%–27.90%
Loan amount
From $1,000
Min credit score
Not specified
Est. APR
7.40%–27.90%
Loan amount
From $1,000
Min credit score
Not specified
Loan term
1-6 yrs
Origination fee
Not specified
Pros
  • Upfront about potential rates
  • Low minimum annual income
  • Money-back guarantee
Cons
  • Limited inventory
  • Non-negotiable down payment required
  • High maximum APR
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an Carvana loan. Carvana is also a good match for people who prefer access to customer service seven days a week.
Rating: 3.6 stars out of 5
3.6
Bankrate review
See personalized rates

Overview: Auto Credit Express works with a nationwide network of dealerships to offer new, used and refinance auto loans. The process can start online with a loan request form. Borrowers then get matched with a lender and can begin shopping at a local dealership.

Read Bankrate's Expert Auto Credit Express Review
Fixed APR
Not disclosed
Loan amount
$5k– $45k
Min credit score
Not specified
Est. APR
Not disclosed
Loan amount
$5k–$45k
Min credit score
Not specified
Loan term
2-7 yrs
Origination fee
Not specified
Pros
  • Low minimum income requirement
  • Accepts co-signers
  • Works with bad credit borrowers
Cons
  • High minimum loan amount
  • Limited information available online
  • Unclear rates and fees
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an Auto Credit Express loan. Auto Credit Express is also a good match for people who prefer access to customer service seven days a week.
Rating: 4.5 stars out of 5
4.5
Bankrate review
See personalized rates

Overview: Caribou partners with online lenders to match borrowers with potential options for refinancing auto loans.

Read Bankrate's Expert Caribou Review
Fixed APR
4.39%–28.55%
Loan amount
$5k– $125k
Min credit score
600
Est. APR
4.39%–28.55%
Loan amount
$5k–$125k
Min credit score
600
Loan term
2-7 yrs
Origination fee
Not specified
Pros
  • Customer service available seven days a week
  • Insurance bundling option
  • Prequalification offered
Cons
  • Not available in all states
  • Potential processing fee
  • High minimum loan amount
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an Caribou loan. Caribou is also a good match for people who prefer access to customer service seven days a week.
Rating: 4.5 stars out of 5
4.5
Bankrate review
See personalized rates

Overview: Based on partnerships with banks and credit unions, iLending works to find an improved loan for your financial needs through its network.

Read Bankrate's Expert iLending Review
Fixed APR
5.49%–19.24%
Loan amount
$2.5k– $100k
Min credit score
560
Est. APR
5.49%–19.24%
Loan amount
$2.5k–$100k
Min credit score
560
Loan term
1-8 yrs
Origination fee
Not specified
Pros
  • Low minimum credit score
  • Vehicle repayment protection
  • Customer service
Cons
  • Unspecified fee amounts
  • No new/used auto loans
  • Online only experience
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an iLending loan. iLending is also a good match for people who prefer access to customer service seven days a week.
Rating: 4.1 stars out of 5
4.1
Bankrate review
See personalized rates

Overview: Borrowers can prequalify for auto refinance loans online using LendingClub. An offer may be ready in minutes.

Read Bankrate's Expert LendingClub Review
Fixed APR
4.99%–24.99%
Loan amount
$4k– $55k
Min credit score
300
Est. APR
4.99%–24.99%
Loan amount
$4k–$55k
Min credit score
300
Loan term
2-7 yrs
Origination fee
Not specified
Pros
  • Competitive minimum APR
  • Relatively low minimum amount
  • Accepts fair credit
Cons
  • Slow funding timeline
  • High maximum APR
  • Not available in all states
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an LendingClub Auto loan. LendingClub Auto is also a good match for people who prefer access to customer service seven days a week.
Rating: 4.1 stars out of 5
4.1
Bankrate review
See personalized rates

Overview: Tenet partners with a number of lenders and specializes in EV financing. On top of specializing in greener rides, Tenet offers a streamlined online experience to simplify the lending process.

Read Bankrate's Expert Tenet Review
Fixed APR
5.99%–16.20%
Loan amount
$15k– $95k
Min credit score
Not specified
Est. APR
5.99%–16.20%
Loan amount
$15k–$95k
Min credit score
Not specified
Loan term
3-7 yrs
Origination fee
Not specified
Pros
  • Loan terms up to 84 months
  • Low maximum APR
  • Fully online experience
Cons
  • Only offers EV financing
  • High minimum loan amount
  • Limited state availability
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an Tenet loan. Tenet is also a good match for people who prefer access to customer service seven days a week.

What are bad credit auto loans?

Auto loans are secured loans that use the car you buy as collateral. A bad credit auto loan is essentially the same as a normal auto loan, but it usually has a more expansive acceptance criteria at the trade off of higher rates and fees.  

You are typically asked to pay a fixed interest rate and make monthly payments for 24 to 84 months, at which point your car will be paid off. Many dealerships offer their own financing, but you can also find auto loans at national banks, local credit unions and online lenders. 

While you are unlikely to qualify for the lowest auto loan rates, you should still take the time to apply for preapproval before you visit a dealership. This will help you get the most competitive offer from lenders that offer car loans for bad credit. 

Auto loan rates by credit score

This answer varies by specific lender, but the better your score is, the better your rates and terms will be. If you have low or no credit, you may still qualify for a loan but should expect a higher average auto loan rate.

In the fourth quarter of 2024, drivers with scores of 500 or lower received an average rate of 15.75 percent for new and 21.81 percent for used cars, according to Experian — both up from third quarter numbers. However, these borrowers accounted for a small portion of approved loans. Those with scores between 500 and 600 fared better, with rates of 13.08 percent and 19.38 percent for new and used cars, respectively.

Credit score New cars Used cars
781 to 850 (super prime) 4.77% 7.67%
661 to 780 (prime) 6.40% 9.95%
601 to 660 (nonprime) 9.59% 14.46%
501 to 600 (subprime) 13.08% 19.38%
300 to 500 (deep subprime) 15.75% 21.81%

How to apply for car loans with bad credit

It is possible to get a car loan with bad credit, although having bad credit will raise the rates you're offered. If you are having trouble getting approved or finding acceptable rates, follow these steps:

  1. Check your credit score: At least 30 days before you plan on applying, check your credit report and your credit score. Dispute any inaccurate information to get it removed and boost your score.
  2. Reduce existing debt: Before applying for an auto loan, pay down as much debt as you can and avoid opening new accounts.
  3. Get a cosigner: A cosigner with good credit will take on some responsibility for your loan if you default, but they can also help you qualify for the loan and potentially for a lower rate.
  4. Make a large down payment: A larger down payment will lower your monthly payment, and it could also help you qualify for better rates because it reduces the amount you have to finance.
  5. Apply for preapproval: Auto loan preapproval allows you to visit a dealership like a cash buyer. You can start your search on Bankrate to see what rates you could qualify for.

Avoid buy here, pay here dealerships

While you can expect higher rates with any subprime car loan, use buy here, pay here car lots as a last resort. These dealerships specialize in bad credit auto loans, but the cost of financing can put a strain on your budget.

What to consider when refinancing your car with bad credit

If you are applying to refinance loan with poor credit, keep your loan amount, as well as the mileage and age of your vehicle, in mind. 

  • Vehicle mileage: Lenders will only refinance vehicles between 80,000 miles and 120,000 miles, though most will only accept vehicles with less than 100,000 miles.
  • Age of vehicle: Many lenders will not refinance a vehicle over 10 years old, but there may be exceptions for antique or collector vehicles.
  • Loan amount: You will be required to have a minimum amount left on your loan, but the exact balance depends on your lender.

Pros and cons of car loans for bad credit

Securing vehicle financing aimed at poor credit borrowers can be an excellent way to get a car, but it comes with risks. Consider the benefits and drawbacks of a bad credit auto loan.

Green circle with a checkmark inside

Pros

  • On-time payments can improve your credit score.
  • More options for shoppers who might not have access otherwise.
  • Less stringent credit requirements.
Red circle with an X inside

Cons

  • Potentially high interest rates.
  • Higher monthly cost.
  • Likelihood of additional fees.
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BANKRATE EXPERT FAQ

Can taking out an auto loan help build your credit?

Beverly Harzog

Nationally recognized finance expert

Yes, it can! Payment history is 35% of your FICO score. If you make your monthly payments on time, this helps build a solid credit score. An auto loan also contributes to your credit mix, which makes up 10% of your score. Do keep in mind that an auto loan can also damage your score if you make late payments. So make sure you set up a system that reminds you when bills are due.

Rebecca Betterton

Auto loans expert

Taking out any new credit product will have an impact on your credit score, both positively and negatively. On its own, taking out a car loan does not increase your credit. Your credit may actually take an initial drop following your application due to the hard pull. However, if you are able to keep up with your monthly payments and remain in good standing, then you will likely see a boost. But this doesn’t happen overnight, and the risk of a vehicle loan damaging your credit is not one to be ignored.

How to choose the best bad credit auto loan

Choosing the right auto financing for bad credit and best lender for you is critical to getting the most competitive rate. Choose lenders based on which loan fits your budget and financial needs. When shopping for an auto loan, compare the annual percentage rate (APR) each lender offers in addition to other factors like repayment options and approval requirements.

FAQs about bad credit auto loans

How we choose our best bad credit auto loan lenders

Bankrate's trusted auto loans industry expertise

Read our full methodology

48

years in business

26

lenders reviewed

20

loan features weighed

520

data points collected

The Bankrate team evaluated over two dozen lenders to select our top picks for the best auto loans. Our 20-point system judged how lenders perform across four main categories.