Compare bad credit car loans you can apply for online | finder.com

Have bad credit and need a car loan? These are your options.

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Your car loan options may seem limited when you have a low credit score. But there are lenders willing to help.

It can be difficult to find loan with affordable rates if you have poor credit. But there are lenders willing to help you get the car you need. In fact, there are lenders that specifically assist people with poor credit. But be cautious and compare lenders before you decide on one.

borrowers with poor or no credit are seen as high-risk, lenders tend to charge significantly higher interest rates and fees. And it’s likely you’ll have to put up collateral — often your car — or get a cosigner to be approved.

car.Loan.com Car Loans

Our top pick for bad credit car loans: car.Loan.com

Get matched with a local car dealership to finance your car purchase. Bad credit, no credit OK.

  • Specializing in 'buy here, pay here' car loans. No banks or credit unions.
  • Typically hear back from a rep within 24 hours.
  • Free loan-matching service. No obligation offers.

    Compare bad credit car loans

    Rates last updated September 21st, 2018

    Reveal your potential loan offers and rates

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    Unfortunately, none of the personal loan providers offer loans for that credit score. If you are in urgent need of a small loan, you might want to consider a short term loan.
    Name Product Product Description Minimum Credit Score Term of Loan Requirements
    car.Loan.com Car Loans
    Apply with a simple online application to get paired with a local auto lender. No credit and bad credit accepted.
    300
    Varies by lender
    Must be a US citizen with a current US address and employed full-time or have guaranteed fixed income.
    Auto Credit Express Car Loans
    Get connected with an auto lender near you, even if you have bad credit.
    300
    Typically 3 to 6 years
    Must be employed full-time or have guaranteed fixed income of at least $1,500/month and be a current resident of the US or Canada.
    LendingClub Auto Refinancing
    Lower your monthly car payments and save on interest through a fast and easy online application process.
    Fair or poor credit
    Minimum of 2 years
    Car must be less than 10 years old with fewer than 120,000 miles. Current loan must have a balance between $5,000 and $55,000 and at least 24 months left in its term.
    MotoRefi Car Loan Refinancing
    A car loan connection service for borrowers looking to refinance.
    525
    1–6 years
    Must have an income of at least $2,000/month and have a vehicle with less than 100,000 miles.
    myAutoloan.com Car Loans
    Get up to four offers in minutes through one simple application. Multiple financing types available including new cars, used cars and refinancing.
    550
    24 to 84 months
    Must have a Social Security number; make $24,000+/year; have no open bankruptcies.
    LendingTree Auto Loans
    Compare multiple financing options for auto refinance, new car purchase, used car purchase and lease buy out.
    670
    Typically 1 to 7 years
    Must be a US citizen and 18+ years old. Must have good to excellent credit.
    Capital One Auto Financing
    You could qualify for a car loan of up to 40000, but not all dealers accept this bank's financing.
    Good to excellent credit
    36 to 72 months
    Valid street address; existing Capital One accounts in good standing. Car must be a 2006 model or newer with less than 120,000 miles.
    Wells Fargo Auto Loans
    Auto loans with high loan amounts to cover your car purchase or refinancing needs.
    Good to excellent credit
    1 to 6 years
    Your income and assets must support your existing debt obligations and the desired loan amount.

    Compare up to 4 providers

    Bad credit commodore7 questions to ask about bad credit car loans

    Buying a car is one of the bigger purchases you’ll make in your life, so shop around to make sure you’re getting the best deal. Before you apply for any loan, find out as much as you can about the offer you’re getting. Here are some key things you need to look for before you proceed.

    What’s the interest rate?

    The interest rate on your loan will affect how much your payments are. Always know what rate you’ll pay, and take the time to compare it against other car loans to be sure the offer is competitive.

    Is the loan secured or unsecured?

    If you take out a secured loans, then that the lender is using your car as security for the loan. While this means you may have a lower rate, you run the risk of having the car repossessed if you default on the loan. Unsecured loans are reserved for people with a higher credit rating and the application process is much simpler.

    What’s my loan term?

    Loan terms can run from a year and as many as seven years. A shorter loan term can reduce the amount of interest you pay on your loan overall and help you get out of debt quicker — but monthly payments will be bigger.

    On the other hand, choosing a longer loan term will reduce your monthly payments, increasing the amount of interest you end up paying.

    What’s my minimum payment?

    You want to find affordable minimum payments that you can expect each month. It’s important to choose a loan term that suits your income and is in line with your financial plans.

    Can I make any extra payments?

    The flexibility of making extra payments can help you get out of debt much quicker. Check with your lender to see if it allows extra payments.

    What kind of loan fees will I pay on a poor-credit car loan?

    Some lenders charge a monthly account fee or administration fee on bad-credit car loans, ranging from $5 to $15 per month. Many will also charge an origination fee to create your loan — this fee is typically represented as a small percentage of 1% to 3% of the loan.

    Can I pay off the loan early without being penalized?

    Some loans include early repayment fees if the loan is paid in full before the agreed loan term date. If you intend to make extra payments to pay your debt off sooner, check how much you might be charged.

    Mistakes to avoid with a bad credit car loan

    Make sure you know exactly what you’re getting into before you sign up for a car loan — or any loan. If you don’t do your research, you could find yourself in a financial nightmare, or worse — in a scam.

    • Going over budget. Work out how much money you’ll be paying back over the course of the loan to get an idea of how much you’ll spend on your vehicle — is it worth it, and more importantly can you afford it?
    • Check user reviews. Check review sites, messages boards and car enthusiast websites to see what other people have to say about certain lenders. If you know someones who’s been in a similar position when financing a car purchase, ask them.
    • Extremely long loan terms. Some lenders offer loan terms of six and seven years that can accrue major interest over time. Sure, the monthly payments will be lower, but if it’s not absolutely necessary, it should be avoided to save money.
    • Being unprepared. Check your credit score before you do any car shopping so the dealer or lender can’t take advantage of you. Also, by knowing interest rates that other lenders offer, you’ll be able to compare and find the most competitive deal.
    • Making an impulsive purchase. Of course your dream car is out there. But if you have poor credit, it may have to wait so you can buy a car you can afford — and has lower rates.

    Alternatives to consider

    If a bad credit car loan isn’t the right choice for you, you could consider using a credit card to buy a car. The smart way to pay for a car purchase with a credit card is to buy a cheap car and take advantage of a low interest rate or 0% offer. This way you pay off the balance gradually without the hefty charges associated with a regular credit card or personal loan.

    Another way to avoid taking out a bad-credit loan is to wait. Work towards improving your credit rating by controlling your debts, managing your finances responsibly and knowing what’s on your credit file so you can remove any errors or disputes from your file.

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