Credit Direct vs. Regions Bank: Which offers better auto loans?

Credit Direct is a marketplace to help you compare multiple lenders at once, while Regions Bank is a direct lender. Both work with borrowers in a handful of Southern and Midwestern states.

Credit Direct is a good place to start if you’re in the early stages of finding an auto loan. However, Regions is best if you are looking to refinance your current loan.

With both options, you must meet a few minimum criteria to qualify.

Credit Direct vs. Regions Bank at a glance

Credit Direct is better if you need a starting point to compare potential lenders. Regions doesn’t offer prequalification — but you can expect much lower rates and larger loans.

Best for people who want to easily compare lenders.

Credit Direct

Rating: 4 stars out of 5

4

Learn more in our Bankrate review

• Bankrate's view

  Credit Direct is a marketplace that connects borrowers to potential lenders, making it easy to compare multiple loan options.

  But even compared to other marketplaces, Credit Direct is somewhat unusual: It doesn’t offer secured auto loans. Instead, it offers unsecured personal loans for borrowers to purchase a vehicle. Because these loans aren’t collateralized by vehicles, there are no restrictions on the cars borrowers purchase with them.

  The drawback is that the lack of collateral means that unsecured auto loans are typically more expensive than auto loans. Rates may be higher, and it may be harder to qualify for the loan. However, the company’s partner lenders often use underwriting methods that look at more than just your credit, which can help offset this.

• Pros and cons

  

  Pros

  • Small minimum loan: The loan minimum of $1,000 is unusually small among auto lenders.
  • Prequalification: You can compare rates without a hard credit inquiry.
  • Unsecured loans: Your car isn’t at risk of repossession if you default.

  

  Cons

  • Limited availability: Loans are available in 14 states, fewer than Regions’ 15-state service area.
  • Small maximum amount: The loan maximum of $40,000 is smaller than the average price of a new car — you may have to save up for a sizeable down payment.
  • High max APR: Credit Direct’s maximum annual percentage rate of nearly 30 percent is sky-high — even for a personal loan.

Best for people who want to buy an expensive vehicle.

Regions Bank

Rating: 3.7 stars out of 5

3.7

Learn more in our Bankrate review

• Bankrate's view

  Regions Bank is a direct lender that offers traditional secured auto loans. This can make qualification easier and help keep rates lower than personal loan rates, especially for people with less than excellent credit.

  Unlike Credit Direct, Regions Bank offers loan refinancing, giving car owners whose credit has improved the chance to lower their interest rate to save money. Additionally, all Regions Bank auto loans come with free gap insurance, which most lenders charge for.

• Pros and cons

  

  Pros

  • Lower starting APR: While Regions Bank’s APRs aren’t the lowest available on the market, its starting rate of 6.49 percent is close to the national average.
  • Discounts: You can land a 0.25% rate discount if you set up autopay. Regions Bank also offers discounted rates for qualifying electric vehicle loans.
  • High maximum amount: The maximum amount of $125,000 is near the top for auto lenders, with only a few offering higher amounts.

  

  Cons

  • Just one loan offer: You won’t receive multiple loan offers to compare.
  • No prequalification: You can’t prequalify for these loans, which means undergoing a hard credit check.
  • Limited state footprint: Regions Bank only serves 15 states, partially overlapping with Credit Direct’s footprint: AL, AR, FL, GA, IL, IN, IA, KY, LA, MS, MO, NC, SC, TN and TX.

How to choose between Credit Direct and Regions Bank

Credit Direct may be better for people who want small loans or to make comparison shopping easier, while Regions Bank offers a more traditional lending experience and the option to refinance.

Choose Credit Direct if you want a small loan or to make shopping around easy

Credit Direct offers loans for as little as $1,000, making it a better choice for borrowers who only need a small amount to help them buy a car. It also makes prequalifying risk-free and shopping for a loan easy, thanks to the multiple loan offers that you can receive.

However, the fact that it connects you to personal loans rather than auto loans has drawbacks. Rates far exceed other lenders’ rates, especially for those with fair or poor credit. According to Experian data, even those with scores under 660 can get auto loan rates under 10 percent from many lenders. However, Credit Direct charges as much as 29.99 percent for its least-qualified borrowers.

Choose Regions Bank if you bank with Regions or need a large loan

Regions Bank is a more traditional auto lender, offering loans secured by the vehicle you buy. Regions Bank may be a solid choice if you want to avoid Credit Direct’s unusual underwriting process.

This is especially true if you have fair or poor credit — though it’s unclear if Regions accepts lower scores. It charges a maximum APR of 16.99 percent, about half of what Credit Direct charges. It also offers much larger loans, making it a solid option if you want to buy a high-end vehicle.

Compare more lenders before applying

When you’re thinking about buying or refinancing a car, it’s essential to compare multiple loan options. Credit Direct can help you do that, but Regions will be the more standard option if you know you qualify for its loans. If you’re shopping to refinance, Regions is the clear choice of the two, but you should check out our other favorite refinancing loan options, too.

Before you commit to either, look for the lender with the best interest rates and fees and see what offers you qualify for. With a bit of legwork, you can land a good deal — even if that means comparing additional lenders.