Charles Schwab auto loan alternatives | finder.com

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Charles Schwab auto loan alternatives

Compare threealternative lenders with low interest rates and competitive terms.

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 Auto Loans

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 2.39%, 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.
Pros
  • Low rates on a variety of loan options
  • Works with dealerships and private sellers
  • Hefty APR discount of 0.5%
Cons
  • Must borrow at least $5,000
  • Strict vehicle eligibility requirements
  • Not upfront about fees
Loan amount$5,000 – $100,000
APRVaries
Minimum credit scoreVaries
Loan term1 to 6.25 years

PenFed Auto Loans

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
Loan amount$500 – $100,000
APRStarting at 1.04%
Minimum credit scoreVaries
Loan termUp to 10 years

LendingTree

LendingTree is a connection service, not a direct lender, which gives you the opportunity to compare offers from multiple providers with one online form. Not only does this save you time — and a hard hit to your credit score — you'll 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 amountN/A
APRStarting at 3.09%
Minimum credit scoreGood to excellent credit
Loan termVaries by lender

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.

You should browse our list of best auto loans and learn more about current auto loan rates before making a final decision.

Compare more auto loan providers

Data updated regularly
Name Product Filter Values Minimum credit score APR Loan term Requirements
PenFed Auto Loans
Varies
Starting at 1.04%
Up to 10 years
Active membership with PenFed
Low APR car loans from a well-known credit union.
Carvana
No minimum credit score
3.9% to 27.9%
Varies
18+ years old, annual income of $4,000+, no active bankruptcies
Get pre-qualified for used car financing and receive competitive, personalized rates.
car.Loan.com Car Loans
300
Varies by network lender
Varies by lender
Must be a US citizen with a current US address and employed full-time or have guaranteed fixed income.
Apply with a simple online application to get paired with a local auto lender. No credit and bad credit accepted.
CarsDirect auto loans
No minimum credit score
Varies by network lender
Varies by network lender
Must provide proof of income, proof of residence, and proof of insurance.
Save time and effort with this lending service specializing in beginner-friendly or subprime car loan.
Auto Credit Express Car Loans
300
Varies
Varies
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.
Get connected with an auto lender near you, even if you have bad credit.
Monevo Auto Loans
500
3.99% to 35.99%
3 months to 12 years
Credit score of 500+, legal US resident and ages 18+.
Quickly compare multiple online lenders with competitive rates depending on your credit.
LendingTree
Good to excellent credit
Starting at 3.09%
Varies by lender
18+ years old, good to excellent credit, US citizen
Compare multiple financing options for auto refinance, new car purchase, used car purchase and lease buy out.
myAutoloan.com Car Loans
550
1.79% to 27%
550+ credit score, no open bankruptcies, $24,000+ annual income, US citizen or permanent resident, 18+ years old
Get up to four offers in minutes through one simple application. Multiple financing types available including new cars, used cars and refinancing.
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Compare up to 4 providers

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