6 Best Bad Credit Car Loans

Here are the best car loans for those with bad credit.

You might be worried that you won’t be able to get a car loan with a bad credit score — which is 579 or lower, according to FICO. But options for bad credit auto financing are available.

If you decide not to buy new, shop around to find the best used-car loan rates — a small change in rates can make a difference even on an average monthly car payment. In addition, talk to lenders about your credit score. If you can show that your score is low because of something like a sudden illness or divorce — rather than a history of poor financial decisions — they might consider you a more favorable credit risk.

Explore getting a car loan with one of these six lenders or companies that match you with loans. Once you know how to get a car loan with bad credit, you’ll be on the road in no time.

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1. Auto Credit Express

Auto Credit Express doesn’t actually make loans; rather, it matches you with dealers and lenders across the country. Once you know which dealers will work with you, you can find a car that fits your budget. Auto Credit Express doesn’t have a minimum credit score requirement or maximum loan amount — it determines those factors on an individual basis. In general, however, you must earn at least $1,500 in gross income per month from full-time employment or a guaranteed fixed income like Social Security payments.

Learn: Top 7 Hidden Costs of Taking Out an Auto Loan

2. myAutoloan.com

myAutoloan.com uses your application information to search for appropriate lenders in its database. Before you commit, you can take advantage of the company’s interest rate estimator to find your range of rates, which depends on the car you’re buying, your credit score and where you live.

To apply, you must live in the contiguous 48 states — sorry, Alaska and Hawaii residents — have a minimum monthly income of $1,800 and no open bankruptcies. In addition, the car you buy can’t have more than 100,000 miles on it and must not be more than eight years old. Last, you are required to borrow or refinance at least $8,000.

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3. RoadLoans

RoadLoans issues loans for car financing and refinancing. You can apply online before you go to the dealership and you’ll get a decision within 30 seconds, according to the company.

When you receive a decision, it includes information about any restrictions on the car you can purchase. If you get a better offer elsewhere, you have the option to go with that lender.

Related: This Is How Often You Can Refinance a Car Loan

4. CarFinance.com

Consumers with all types of credit are welcome to apply at CarFinance.com, which offers loan terms of up to 72 months. The maximum you can borrow depends on your income and the type of car you want to buy.

If you apply during business hours, you can expect a response within 30 minutes; and if you’re declined, you’ll be told why. CarFinance.com also offers guaranteed auto protection insurance — which you can add to your loan amount — that covers the amount your loan exceeds the value of your car.

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5. SpringboardAuto.com

SpringboardAuto.com advertises loans from $7,000 to $45,000 for people with less-than-perfect credit. You can apply online within 60 seconds and receive an instant decision without affecting your credit score.

The company also allows you to refinance an existing car loan at a lower interest rate. To apply, you need to provide your full name, address, income information and details on the car you’re looking to purchase or refinance.

6. Capital One

Capital One enables you to search more than 12,000 dealers to find a car and get real-time APR and monthly payment information. To prequalify, you must choose a car that is 10 years old or newer, with fewer than 120,000 miles.

To get a loan you need to have $1,500 or $1,800 in monthly income — the amount depends on your credit — and you can finance between $4,000 and $40,000 for up to 72 months. Your prequalification from Capital One is good for 30 days, so you have time to shop around.

Up Next: New and Used Car Loan Interest Rates Explained

This content is not provided by any of the lenders or loan matching companies reviewed here. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been reviewed, approved, or otherwise endorsed by any of the lenders reviewed here.

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About the Author

Michael Keenan

Michael Keenan is a writer based in the Kansas City area, specializing in personal finance, taxation, and business topics. He has been writing since 2009 and has been published by Quicken, TurboTax and The Motley Fool.

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