NEW
Tenet: Best for specialized EV loans
APR from
6.39-
15.75%
Loan term
3-7 yrs
Loan amount
$15k- $95K
Min credit score
Not disclosed
Read our review
Read review on Bankrate
Best bad credit auto loan rates for December 2024
Written by
Edited by
Updated Dec 05, 2024
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.
Before approving you for an auto loan, lenders will assess how much risk you pose by looking at factors like credit score, payment history, work history, or even education. FICO defines "bad credit" as a personal FICO score under 580, though lenders may have their own definitions.
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NEW
myAutoLoan: Best for fair credit borrowers
APR from
6.79%
Loan term
2-7 yrs
Loan amount
Starting at $8,000
Min credit score
600
See rates
Apply on partner site
USED
myAutoLoan: Best for fair credit borrowers
APR from
7.04%
Loan term
2-7 yrs
Loan amount
Starting at $8,000
Min credit score
600
See rates
Apply on partner site
NEW
Auto Credit Express: Best for low-income borrowers
APR from
Varies by lender
Loan term
2-7 yrs
Loan amount
$5k- $45K
Min credit score
Not disclosed
See rates
Apply on partner site
REFINANCE
Autopay: Bankrate award winner for best auto loan online lender
APR from
4.99%
Loan term
1-8 yrs
Loan amount
$5k- $150K
Min credit score
580
See rates
Apply on partner site
REFINANCE
Auto Approve: Best for loan comparison
APR from
5.29-
24.99%
Loan term
1-7 yrs
Loan amount
$10k- $150K
Min credit score
620
See rates
Apply on partner site
REFINANCE
myAutoLoan: Best for comparing rates with good credit
APR from
4.99%
Loan term
2-7 yrs
Loan amount
$5k- $120K
Min credit score
600
See rates
Apply on partner site
REFINANCE
Caribou: Best for fair credit loan comparison
APR from
5.48-
28.55%
Loan term
2-7 yrs
Loan amount
$5k- $125K
Min credit score
640
See rates
Apply on partner site
USED
Auto Credit Express: Best for low-income borrowers
APR from
Varies by lender
Loan term
2-7 yrs
Loan amount
$5k- $45K
Min credit score
525
See rates
Apply on partner site
REFINANCE
RefiJet: Best for customer support
APR from
Not specified
Loan term
2-8 yrs
Loan amount
$5k- $150K
Min credit score
580
See rates
Apply on partner site
REFINANCE
iLending: Best for poor credit refinancing
APR from
5.94-
18.79%
Loan term
2-8 yrs
Loan amount
$5k- $150K
Min credit score
560
See rates
Apply on partner site
REFINANCE
LendingClub: Bankrate 2024 Award winner for best for auto refinance
APR from
4.99-
24.99%
Loan term
2-7 yrs
Loan amount
$4k- $55K
Min credit score
300
Read our review
Apply on partner site
NEW
Autopay: Bankrate award winner for best auto loan online lender
APR from
4.99%
Loan term
1-8 yrs
Loan amount
$8k- $150K
Min credit score
580
See rates
Apply on partner site
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Compare the best bad credit auto loan rates in December 2024
As a bad credit borrower, it is especially important to compare the ins and outs of potential lenders to ensure you get the best deal possible.
| Lender | APR range | Term |
|---|---|---|
| Autopay | Starting at 4.99% | 12 to 96 months |
| myAutoLoan | Starting at 4.99% | 24 to 84 months |
| Carvana | 7.90%-27.90% | 12 to 72 months |
Loan details presented here are current as of November 26, 2024. Check the lenders’ websites for more current information. The auto loan lenders listed here are selected based on factors such as APR, loan amounts, fees, transparency, credit requirements and more.
A closer look at our top picks for bad credit auto loans
Autopay: Best for shopping multiple offers
Autopay: Best for shopping multiple offers
4.2
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.
Fixed APR
4.99%Loan amount
$8k– $150k
Min credit score
580
myAutoLoan: Best for fair credit borrowers
myAutoLoan: Best for fair credit borrowers
3.7
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.
Fixed APR
6.79%Loan amount
Starting at $8,000
Min credit score
600
Carvana: Best for online vehicle purchase
Carvana: Best for online vehicle purchase
4.3
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.
Fixed APR
7.95%–27.95%Loan amount
From $1,000
Min credit score
Not specified
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.
When you finance a car it is often a secured loan, which tends to come with lower interest rates than unsecured loan options, like personal loans. According to the automotive finance study for the second quarter of 2024 by Experian, the average loan rates by credit score are the following.
Auto loan rates by credit score
| Credit score | New cars | Used cars |
|---|---|---|
| 781 to 850 (super prime) | 5.25% | 7.31% |
| 661 to 780 (prime) | 6.87% | 9.36% |
| 601 to 660 (nonprime) | 9.83% | 13.92% |
| 501 to 600 (subprime) | 13.18% | 18.86% |
| 300 to 500 (deep subprime) | 15.77% | 21.55% |
Pros and cons of bad credit auto loans
Securing vehicle financing aimed at poor credit borrowers can be an excellent way to get a car but comes with risks. Consider the benefits and drawbacks of a bad credit auto loan.
Pros
- On-time payments can improve your credit score
- More options for shoppers who might not have access otherwise
- Less stringent credit requirements
Cons
- Potentially high interest rates
- Higher monthly cost
- Likelihood of additional fees
How to choose the best bad credit auto loan
Choosing the right loan and best lender for you is based on which loan fits your budget and financial needs. When shopping for an auto loan, compare APRs across multiple lenders to make sure you are getting a competitive rate.
Look for lenders that keep fees to a minimum and offer repayment terms that fit your needs. It is a good idea to gain at least three quotes before signing off on a loan. Give special attention to the following factors:
4 tips on how to secure an auto loan 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:
- 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.
- Get a co-signer: A co-signer 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.
- Reduce existing debt: Before applying for an auto loan, pay down as much debt as you can and avoid opening new accounts, like credit cards.
- Check your credit report: At least 30 days before you plan on applying, check your credit report. Dispute any inaccurate information to get it removed and boost your score.
What to consider when refinancing your car with bad credit
If you are applying for a refinance loan with poor credit, keep the following constraints in mind.
- Vehicle mileage: The number of miles clocked on your vehicle's odometer greatly impacts the value of your car. Lenders' constraints can differ by tens of thousands of miles, so check for these types of restrictions.
- Age of vehicle: Many lenders will not refinance a vehicle over 10 years old.
- Loan amount: Most lenders present minimum loan amounts for refinance loans. Depending on your financial state, factor in the entire cost you will need.
FAQs about bad credit auto loans
How we choose our best bad-credit auto loan lenders
Bankrate's trusted auto loans industry expertise
48
years in business
37
lenders reviewed
18
loan features weighed
666
data points collected
The Bankrate team assessed more than 35 auto lenders to find the best. Bankrate considered 18 criteria, such as acceptance criteria, loan amounts and APR range. These scores are broken into four categories.