Charles Schwab’s main focus is on banking and investing, not loans. The few loan options it does have are secured by your investment portfolio — not ideal for financing a car.
But you still have options. There are other banks, credit unions and online lenders with competitive on both new and used cars to make up where Charles Schwab falls short.
3 alternatives to Charles Schwab auto loans
If you’re looking for an auto loan specifically from a traditional lender, Bank of America and PenFed may be able to help. And if you want to see what sorts of rates and terms you might qualify for, LendingTree is a good place to compare multiple lenders, including other banks and credit unions.
Bank of America offers auto loans for both new and used cars from a dealership or a private seller — rare for a bank. Its interest rates start low at just 5.39%, and you could also knock off up to 0.5% from your APR with a qualifying Bank of America account.
If you're prequalified for an auto loan through Bank of America, you have 30 days to shop. And if you already have a car loan that you're paying off, Bank of America also offers refinancing that may be able to help you score better rates or terms.
PenFed requires you to be a member to access its auto loans. But you'll certainly reap the rewards. It offers some of the lowest interest rates out there on loan terms stretching up to 84 months.
With a car-buying service, a payment reduction program and great rates on refinancing, it's a competitive option. And as a credit union, you'll have access to the same services you'd have at a bank. Even with somewhat limited branch locations, PenFed is a solid alternative to Charles Schwab and most online lenders.
Pros
Extremely low starting APR for new and used loans
Car-buying service available
Open an account with as little as $5
Cons
Must be a member
Branch locations limited to select states and US territories
LendingTree is a connection service, not a direct lender, which gives you the opportunity to compare offers from multiple providers with one online form. It saves you time — and a hard hit to your credit score — plus you also get an idea of what rates and terms you may be eligible for.
The lenders in its network offer both new and used auto loans, as well as refinancing and lease buyouts, with low starting rates and terms of up to 84 months. And like Bank of America, you can purchase a car from both a dealership or private seller. However, former customers have complained about fielding marketing phone calls and emails from its network of lenders.
Pros
Network of lenders with competitive APRs
Quickly compare offers and options from banks, credit unions and online lenders
Cons
Complaints about a high volume of marketing materials
Good to excellent credit required
Loan amount
Not stated
APR
Starting at 1%
Minimum credit score
Good to excellent credit
Loan term
1 to 20 years
Loan amount
Not stated
APR
Starting at 1%
Minimum credit score
Good to excellent credit
Does Charles Schwab offer similar loans?
Not really. While Charles Schwab offers two secured lines of credit that are backed by your investment portfolio, this might not be the best option for purchasing a car. Especially if you’d rather use your car as collateral rather than your stocks, bonds and other investments.
Bottom line
Charles Schwab may not offer auto loans, but that doesn’t mean you’re out of luck. Whether you’re interested in buying an expensive car or securing a competitive rate — or both — there are other lenders that may be able to help.
Kellye Guinan is a freelance editor and writer, specializing in consumer lending. Her writing and analysis has been featured on Bankrate, MSN and MediaFeed. She holds degrees in anthropology and German language and literature from Middle Tennessee State University. See full bio
Kellye's expertise
Kellye has written 132 Finder guides across topics including:
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