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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.

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myAutoLoan: Best for fair credit borrowers

4.0
APR from
6.94%
Loan term
2-7 yrs
Loan amount
Starting at $8,000
Min credit score
600
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Apply on partner site

USED

myAutoLoan: Best for fair credit borrowers

4.0
APR from
6.94%
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
APR from
Varies by lender
Loan term
2-7 yrs
Loan amount
$5k- $45K
Min credit score
Not disclosed
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Apply on partner site

Autopay: Bankrate 2025 Award Winner Best For New Car Purchases

4.6
APR from
4.85%
Loan term
1-8 yrs
Loan amount
$2.5k- $100K
Min credit score
580
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REFINANCE

myAutoLoan: Best for comparing rates with good credit

4.0
APR from
4.99%
Loan term
2-7 yrs
Loan amount
$5k- $120K
Min credit score
600
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Apply on partner site

REFINANCE

Caribou: Best for fair credit loan comparison

4.5
APR from
5.48- 28.55%
Loan term
2-7 yrs
Loan amount
$5k- $125K
Min credit score
640
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Apply on partner site

USED

Auto Credit Express: Best for low-income borrowers

3.6
APR from
Varies by lender
Loan term
2-7 yrs
Loan amount
$5k- $45K
Min credit score
525
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Apply on partner site

REFINANCE

RefiJet: Best for customer support

4.1
APR from
5.29- 21.99%
Loan term
2-8 yrs
Loan amount
$5k- $150K
Min credit score
500
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REFINANCE

iLending: Best for poor credit refinancing

4.5
APR from
5.49- 19.24%
Loan term
1-8 yrs
Loan amount
$2.5k- $100K
Min credit score
560
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Apply on partner site

REFINANCE

LendingClub: Best for auto refinance

4.1
APR from
4.99- 24.99%
Loan term
2-7 yrs
Loan amount
$4k- $55K
Min credit score
300
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NEW

Tenet: Best for specialized EV loans

4.1
APR from
5.99- 16.20%
Loan term
3-7 yrs
Loan amount
$15k- $95K
Min credit score
Not disclosed
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Autopay
Rating: 4.6 stars out of 5
4.6
Fixed APR
4.85%
Loan amount
$2.5k– $100k
Min credit score
580

MyAutoLoan
Rating: 4 stars out of 5
4
Fixed APR
6.94%
Loan amount
Starting at $8,000
Min credit score
600

Carvana
Rating: 4.3 stars out of 5
4.3
Fixed APR
7.95%–27.95%
Loan amount
From $1,000
Min credit score
Not specified

Auto Credit Express
Rating: 3.6 stars out of 5
3.6
Fixed APR
Not disclosed
Loan amount
$5k– $45k
Min credit score
Not specified

Caribou
Rating: 4.5 stars out of 5
4.5
Fixed APR
5.48%–28.55%
Loan amount
$5k– $125k
Min credit score
640

iLending
Rating: 4.5 stars out of 5
4.5
Fixed APR
5.49%–19.24%
Loan amount
$2.5k– $100k
Min credit score
560

LendingClub Auto
Rating: 4.1 stars out of 5
4.1
Fixed APR
4.99%–24.99%
Loan amount
$4k– $55k
Min credit score
300

Tenet
Rating: 4.1 stars out of 5
4.1
Fixed APR
5.99%–16.20%
Loan amount
$15k– $95k
Min credit score
Not specified
Credit score New cars Used cars
781 to 850 (super prime) 5.08% 7.41%
661 to 780 (prime) 6.70% 9.63%
601 to 660 (nonprime) 9.73% 14.07%
501 to 600 (subprime) 13.00% 18.95%
300 to 500 (deep subprime) 15.43% 21.55%
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
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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?


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.

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.

Bankrate's trusted auto loans industry expertise

48

years in business

26

lenders reviewed

20

loan features weighed

520

data points collected