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Tenet: Best for specialized EV loans
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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.
Definition of terms
APR
Annual percentage rate, or APR, represents the interest rate plus any additional fees that may impact the annual cost of your loan.
Estimated monthly payment
How much you can expect to pay on your loan each month based on the loan principal, loan term and interest rate.
Term
The period of time until your loan achieves maturity and is paid off in completion. Terms can be expressed in months or years, depending on the details of your loan.
Total interest and fees
Total interest and fees include estimated interest over the life of your loan and origination fees, if applicable.
AutoPay
Automated payments are recurring monthly charges on a bill's due date that are automatically deducted from the borrower's account. These are normally used for loans, mortgages and other bill payments.
Bankrate Score
Bankrate's scores for personal loan lenders evaluate 11 data points related to loan costs and terms, as well as customer experience.
Max Loan Amount
The max loan amount is the largest sum a lender will give. This amount may not be available to borrowers who don't have good or excellent credit.
Settlement Fee
The estimated range of fees, as a percentage of your total debt amount resolved, that are owed to the debt settlement provider as payment for their services.
BBB Rating
Represents the Better Business Bureau's opinion of how the business is likely to interact with its customers. The BBB is a non-profit organization which has helped provide unbiased information to consumers for over 100 years. The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB assigns ratings from A+ (highest) to F (lowest).
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The annual percentage (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.
Read review on Bankrate
This lender is registered in states where it does business and was vetted by the Bankrate Editorial team.
Tenet specializes in electric vehicle (EV) and plug-in hybrid financing. This makes it a great choice if you’ve been wanting a more eco-friendly ride. Best of all, financing is available for borrowers with fair credit — a rare feature among lenders.
NEW
3.7
Bankrate Score = 3.7/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
The annual percentage (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.
Apply on partner site
This lender is registered in states where it does business and was vetted by the Bankrate Editorial team.
Borrowing from a loan aggregator is a good way to get the best deal. You only need to fill out one application, and myAutoLoan will field offers from multiple lenders so you can easily compare your options.
See partner disclosures: https://www.myautoloan.com/disclosure-section.html
USED
3.7
Bankrate Score = 3.7/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
The annual percentage (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.
Apply on partner site
This lender is registered in states where it does business and was vetted by the Bankrate Editorial team.
Borrowing from a loan aggregator is a surefire way to get the best way. One recognized in the space, myAutoLoan, will field offers following a single application so you can easily compare your options.
See partner disclosures: https://www.myautoloan.com/disclosure-section.html
NEW
3.6
Bankrate Score = 3.6/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
The annual percentage (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.
Apply on partner site
This lender is registered in states where it does business and was vetted by the Bankrate Editorial team.
Auto Credit Express is a service that matches borrowers with lenders. It specifically works with people who have poor credit and low incomes — as little as $1,500 per month. The lenders in its network accept co-signers, which is a good benefit if you’re on the lower end of the credit spectrum.
All loans are subject to credit and underwriting approval. The programs advertised on this landing page are not a commitment or guarantee from its lender partners to lend. Programs, rates and other terms & conditions on this landing page are subject to change without notice. *APR = Annual Percentage Rate. "APR as low as" is based on the lowest interest rate received by a customer (with a credit score above 750) from one of our participating lenders within the last 3 months. APR is based on the lender’s lowest available rate for qualified applicants. Lowest APR is subject to change. Final APR is determined at the time of your application, based on creditworthiness, value of the vehicle, and loan term. Rate quoted is the lowest APR for qualified applicants, and is subject to vehicle value and loan term.
REFINANCE
4.2
Bankrate Score = 4.2/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
The annual percentage (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.
Apply on partner site
This lender is registered in states where it does business and was vetted by the Bankrate Editorial team.
Autopay offers both traditional and cash-out refinancing to borrowers. It has a large marketplace and works with a range of lenders which can also help borrowers find a good fit.
1. See Your Savings. Working with a national network of lenders, we saved our average customer over $1,118 last year. 2. Shop Rates. Customize the loan that is right for you, and lock in your new rate and payment that is right for you on your terms. 3. Verify & sign on-line. In our work we use the most modern and convenient solutions.
REFINANCE
4.0
Bankrate Score = 4.0/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
The annual percentage (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.
Apply on partner site
This lender is registered in states where it does business and was vetted by the Bankrate Editorial team.
Auto Approve matches you directly with lenders and handles the DMV paperwork for both refinancing and lease buyouts. In fact, it is one of the few options to quickly compare lease buyouts. This makes Auto Approve a useful tool if you’re struggling to find a lender to finance buying your leased car.
*APR and Fees Disclosure: Auto Approve works with lenders to find you the best Annual Percentage Rate (APR), which is based on factors like your credit history, vehicle and desired payment terms. Fees to complete your loan refinance vary by state and lender; they generally include admin fees, doc fees, DMV and title. Advertised 5.29% APR based on: 2019 model year or newer vehicle, 730 minimum FICO credit score, and loan term up to 72 months. All loans subject to credit and lender approval.
REFINANCE
3.7
Bankrate Score = 3.7/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
The annual percentage (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.
Apply on partner site
This lender is registered in states where it does business and was vetted by the Bankrate Editorial team.
Using a loan marketplace is a great way to approach refinancing. With a low minimum credit score requirement, myAutoLoan is a better comparison option for those who don't have perfect credit.
See partner disclosures: https://www.myautoloan.com/disclosure-section.html
REFINANCE
4.5
Bankrate Score = 4.5/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
The annual percentage (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.
Apply on partner site
This lender is registered in states where it does business and was vetted by the Bankrate Editorial team.
Caribou helps borrowers refinance their current loans with the intent of getting better rates or terms. Following an application, borrowers will get access to multiple offers, which will help ensure they find the right new loan for their needs.
APR is the Annual Percentage Rate. Your actual APR may be different. Your APR is based on multiple factors including your credit profile and the loan to value of the vehicle. APR ranges from 5.48% to 28.55% and is determined at the time of application. Lowest APR is available for a 36 month term, to borrowers with excellent credit. Conditions apply. Advertised rates and fees are valid as of 9/11/24 and are subject to change without notice.
USED
3.6
Bankrate Score = 3.6/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
The annual percentage (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.
Apply on partner site
This lender is registered in states where it does business and was vetted by the Bankrate Editorial team.
Auto Credit Express is a service that matches borrowers with lenders. It specifically works with people who have poor credit and low incomes — as little as $1,500 per month. The lenders in its network accept co-signers, which is a good benefit if you’re on the lower end of the credit spectrum.
All loans are subject to credit and underwriting approval. The programs advertised on this landing page are not a commitment or guarantee from its lender partners to lend. Programs, rates and other terms & conditions on this landing page are subject to change without notice. *APR = Annual Percentage Rate. "APR as low as" is based on the lowest interest rate received by a customer (with a credit score above 750) from one of our participating lenders within the last 3 months. APR is based on the lender’s lowest available rate for qualified applicants. Lowest APR is subject to change. Final APR is determined at the time of your application, based on creditworthiness, value of the vehicle, and loan term. Rate quoted is the lowest APR for qualified applicants, and is subject to vehicle value and loan term.
REFINANCE
3.9
Bankrate Score = 3.9/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
The annual percentage (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.
Apply on partner site
This lender is registered in states where it does business and was vetted by the Bankrate Editorial team.
For those who are looking for extra guidance throughout the refinance process, RefiJet is a strong option. Borrowers are matched with an experienced financial advisor for help throughout the entire experience.
REFINANCE
4.4
Bankrate Score = 4.4/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
The annual percentage (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.
Apply on partner site
This lender is registered in states where it does business and was vetted by the Bankrate Editorial team.
Qualifying for an improved auto loan rate through refinancing can be challenging for those with less-than-perfect credit. iLending caters specifically to those with poor credit, and its easy online application makes it a good option for a range of borrowers.
REFINANCE
4.5
Bankrate Score = 4.5/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
The annual percentage (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.
Apply on partner site
This lender is registered in states where it does business and was vetted by the Bankrate Editorial team.
LendingClub is an online lender that offers flexible refinancing options. Provided you live in a serviced state, it offers refinancing for a wide range of vehicles at competitive rates. Plus you may be able to qualify to refinance with fair credit.
A representative example of payment terms for an Auto Refinancing Loan is as follows: a borrower receives a loan of $23,107 for a term of 59 months with an APR of 8.43%. In this example, the borrower will make 59 monthly payments of $478.91.Loan amounts range from $4,000 to $55,000, and loan term lengths range from 24 months to 84 months. Some amounts, rates, and term lengths may be unavailable in certain states. For Auto Refinancing Loans, APR ranges from 3.99% to 24.99%. APRs are determined at the time of application. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of January 6, 2023 and are subject to change without notice.
NEW
4.2
Bankrate Score = 4.2/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
The annual percentage (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.
Apply on partner site
This lender is registered in states where it does business and was vetted by the Bankrate Editorial team.
Autopay allows borrowers to prequalify for an auto loan which is the key to effective comparison shopping. It also serves as a marketplace, so borrowers also will be presented with several options following a singular application.
1. See Your Savings. Working with a national network of lenders, we saved our average customer over $1,118 last year. 2. Shop Rates. Customize the loan that is right for you, and lock in your new rate and payment that is right for you on your terms. 3. Verify & sign on-line. In our work we use the most modern and convenient solutions.
Backed by over 40 years of experience, our team at Bankrate strives to help you make the right decisions for any financial situation.
Bankrate protects your data from end to end, so you stay safe whether you're browsing articles or prequalifying for a loan.
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.
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.
Autopay is better for a driver with poor credit who is shopping online for a new vehicle or refinancing.
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.
The lender is best for borrowers who want to compare rates following one application and require fast funding.
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.
Borrowing from Carvana is a good fit for a driver already shopping on the Carvana marketplace for a vehicle.
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.
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% |
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:
Every lender has its own criteria you must meet. This is especially true when it comes to bad credit loans. Pay careful attention to minimum credit requirements to be sure you aren’t applying for a loan outside your range.
The APR that lenders will offer is based on your specific financial history. It is important to remember that the lowest interest rate advertised is not what you will receive. When comparing potential rates be sure to calculate additional fees or possible penalties.
Determining the right loan amount requires careful consideration regarding how much vehicle you can afford. Be honest about your budget and use an online calculator before applying.
Auto loan terms typically range from 24 to 84 months. The longer your term, the more interest you will pay. But a longer loan will also yield a lower monthly payment. Keep this in mind when deciding the length of your loan.
Consider the benefits of a lender's customer service on aspects such as online availability, face-to-face communication and hours of operation.
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:
If you are applying for a refinance loan with poor credit, keep the following constraints in mind.
The process of improving your credit takes quite a bit of time. But the stronger your credit is, the better rates and terms you will receive. Some ways to work towards increasing your credit score include:
Applying for a loan with a co-signer who has excellent credit will greatly increase your likelihood of gaining loan approval. The role of a co-signer serves as an extra layer of protection for the lender. The lender gains security because the co-signer is on the hook for payments if the primary borrower can't make them. Because of this, having a co-signer can earn you a decent rate and term, even if you don't have the best credit.
While this answer varies by specific lender, 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 steeper APR.
In the first quarter of 2024, drivers with scores of 500 or lower received an average rate of 15.72 percent for new and 21.57 percent for used cars, according to Experian. However, these borrowers made up only 0.29 percent of approved loans.
Fortunately, a few lenders are moving away from using credit scores as the sole measure of ability to pay off loans. Instead, lenders are considering factors such as work or education history.
There are still ways to get behind the wheel following an initial denial. Firstly, it is important to take time to improve your credit. Do this by paying down any debt to lower your credit utilization rate. Otherwise, consider getting a co-signer for your auto loan.
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.
Loan amounts, repayment options, dealership requirements and state availability all contribute to this category. Lenders that serve customers nationwide with flexible loan amounts rank higher.
This section houses APR ranges, acceptance criteria, fees and discounts. Lenders with the lowest rates, fewer fees and most generous acceptance criteria receive higher scores.
Our team looked at how easy it is for customers to apply for and manage their loans. Criteria include how long you have to shop, customer service hours, whether there’s an app and autopay availability.
This includes prequalification and disclosure of rates and fees. We favored lenders that make it easy for customers to preview possible costs.