Charles Schwab auto loan alternatives

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

• Overview
• Pros & Cons
• More Details

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.

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
APR	Starting at 5.39%
Minimum credit score	Varies
Loan term	1 to 6.25 years

Loan amount	$5,000 – $100,000
APR	Starting at 5.39%
Minimum credit score	Varies

PenFed Auto Loans

• Overview
• Pros & Cons
• More Details

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 – $150,000
APR	Starting at 5.19%
Minimum credit score	Varies
Loan term	3 to 7 years

Loan amount	$500 – $150,000
APR	Starting at 5.19%
Minimum credit score	Varies

LendingTree

• Overview
• Pros & Cons
• More Details

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.

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

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Name	Product	Filter Values	Minimum credit score	APR	Loan term	Requirements
LightStream Auto Loans			Good to excellent credit	Competitive	2 to 7 years	Must have a good to excellent credit profile, be a US citizen or a permanent resident with a valid green card, have a valid Social Security number, credit card verification requested upon loan approval and have a valid US address.	Quick car loans from $5,000 to $100,000 with competitive rates for borrowers with strong credit.	Go to site More Info	Compare	loading Fetching your data...
CarGurus			Varies	Varies depending on the lender	3 to 6 years	Varies depending on the lender	Go to site	Compare	loading Fetching your data...
CarsDirect auto loans			No minimum credit score	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.	Go to site More Info	Compare	loading Fetching your data...
Carvana			No minimum credit score	3.9% to 27.9%	1 to 6 years	18+ years old, annual income of $4,000+, no active bankruptcies	Get pre-qualified for used car financing and receive competitive, personalized rates.	Go to site More Info	Compare	loading Fetching your data...

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