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Best Car Loans for Bad Credit 2023: Compare Rates

Finding a car loan for bad credit can be tough as most lenders approve applicants with good to excellent credit. However, with you can:

  • Apply for a car loan with a credit score of less than 690
  • Compare lenders online
  • Apply for a car loan online in minutes
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The Best Car Loans for Bad Credit September 2023

Chosen 5464 times

$5,000 - $50,000

Loan amount

1 Year - 5 Years

Term of loan

5.69% - 36%

Lowest rate


Minimum age


Chosen 2291 times

$9,000 - $60,000

Loan amount

2 Years - 7 Years

Term of loan

2.25% - 29.99%

Lowest rate


Minimum age


Chosen 77564 times

$500 - $35,000

Loan amount

6 Months - 5 Years

Term of loan

5.99% - 35.99%

Lowest rate


Minimum age

Chosen 4988 times

$600 - $50,000

Loan amount

1 Year - 5 Years

Term of loan

4.99% - 17.99%

Lowest rate


Minimum age

Chosen 160 times

$5,000 - $100,000

Loan amount

3 Months - 3 Years

Term of loan

8.49% - 21.24%

Lowest rate


Minimum age


Please note that loan amounts, interest rates and other loan terms may vary according to your state and credit profile.

As seen in


How to Compare Car Loans for Bad Credit

How to Compare Car Loans for Bad Credit
Choose your loan amount
Choose the amount you would like to borrow.
Compare available options
Filter the results based on your criteria and compare the best car loan for bad credit.
Choose an offer
Find the best car loan for your needs.
Complete the application
Click Get Started to apply for a same day emergency loan

What Is a Bad Credit Car Loan?

A bad credit car loan is an auto loan that allows you to borrow money even if you have a poor credit history. This means you don’t have to pay high interest rates and you can get approved for a lower amount than you would typically qualify for.

A bad credit auto loan is just a regular auto loan with some adjustments made based on your credit.

It means that it might come with a higher interest, but there are many lenders who are willing to work with you.

We list the best lenders that offer car loans for people with credit scores less than 619 and they all allow you to apply for car finance online in just a few minutes.

Lenders typically charge higher interest rates and sometimes more loan fees for a bad credit auto loan. They do this because they compensate for the added risk of borrowers who might not repay their loans. 

You’re likely to find a lender who will approve a loan for you even if you have a bad credit score or no payment history.

Some online lenders or direct lenders offer loans specifically to people with bad credit, but usually at a very high rate.

The key is to look for the best loan at the lowest interest rate and a payment you can handle, so you can get the car you need, may payments on time and build your credit score.

You can also use a loan calculator to see how much you might pay across multiple auto loan offers.


Car Loans for People With Bad Credit: Types of Lenders

Bad-credit vehicle loans are provided by numerous different kinds of lenders.

Applying to multiple lenders is especially crucial if you have terrible credit. Different lenders have different standards, and some may be more flexible than others. Having numerous loan offers also gives you the opportunity to take the loan with the lowest rate to the dealership and request that the finance department attempt to beat it.

  • Credit unions: Banks and credit unions are typically referred to as direct lenders and it is a good place to start. If you already have an account with a credit union, you may be able to get good rates.
  • Online lenders: These lenders have faster application process and often have competitive loan rates to offer. It's easy to compare loans online and see car loan lenders side-by-side. See your loan rates above.
  • Online car dealerships: Online dealerships like Carvana also offer financing to borrowers looking for an auto loan. 
  • Car dealerships: These dealerships also have access to bad credit auto loans and this is typically where most people go, as they may have existing relationships with the dealership, or they simply are unaware of the option of taking out a car loan online

Comparing Bad Credit Auto Lenders

Check to see whether a certain lender makes more sense for you before applying - rather than applying to a random lender and crossing your fingers that you get approved.

For instance, not every lender accepts co-signers. So only submit an application to lenders who accept co-signers if you believe you might require one to be approved for a loan. Look for lenders without a credit history requirement if you have little or no credit history.

Ask the lender if they report payments to one or more of the three major credit agencies, TransUnion, Experian, and Equifax, if one of your aims is to build your credit with an auto loan. Future lenders will have access to your history of on-time car payments if you do this.

Look for lenders who let you pre-qualify for a loan with a soft credit check so that you can compare lenders and prices without having your already poor credit score affected. Pre-qualification is a useful tool for figuring out whether you'll be eligible for an auto loan at all.

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Loans For Bad Credit Can Cost More

The interest rates of car loans for bad credit will generally be higher and so will the loan fees, compared to getting a car loan with excellent credit. Borrowers with bad credit or fair credit will pay more than those with excellent credit.

This is because borrowers with excellent credit are considered more creditworthy and are more likely to not default on their loan repayments.

A car loan that you pay off as an installment loan can improve your credit score over time. It demonstrates that you manage money well by juggling your income and debt ratio.

Steps to Improve Your Chances of Getting a Bad Credit Car Loan

If you’re concerned that you won’t get approved for a car loan with bad credit, there are steps you can take to improve your chances of approval. 

Step 1


Most online auto lenders will allow you to get preapproved for a loan through their online application process. They generally only conduct a soft credit check for preapproval, which will not damage your credit score any further.

Step 2

Consider a cosigner

If you have a family member or close friend who is willing to co-sign a loan with you, it will increase your chance of approval. It may also give you a lower fee rate from the lender. This is because there are two incomes and personal guarantees held against one loan.

Step 3

Improve your credit score

There are multiple ways for you to improve your bad credit to good credit over time. Auto lenders will always favor approval for good credit applicants over fair credit ones. Building your credit over 6 months may increase your chance of approval.

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Find Your Car Loan at helps you compare the best auto loans for bad credit and get the lowest loan rates from leading U.S. lenders.

We look for lenders that offer full transparency and have a long track record of successful lending and satisfied customers. We are always improving our comparisons, but are confident in what we can bring to market, and we know you will be as well.

Use our free loan comparison tool to find the right car loan for bad credit and take the guesswork out of doing all the legwork yourself.

Car Loans for Bad Credit - FAQs

How much does a car loan for bad credit cost?

This depends on the rates you’re offered by the lender. As an example, a $5,000 loan with an APR of 36% over 36 months would lead to monthly payments of $229.02.

Can I qualify for a car loan as a first-time buyer?

Yes, there are many lenders out there that offer loans to first-time buyers even with bad credit. You can pre-qualify online without hurting your credit score and it typically only triggers a soft check.

What is the APR on bad credit car loans?

Average interest rates will vary depending on the lender. The lenders we’ve reviewed above offer APRs from 1.99% and most of them don’t require any credit score to apply. However, the higher your credit score the better your chance of securing a lower APR.

Will a car loan for bad credit improve my score?

If you handle your loan responsibly you can use your car loan to improve your credit score as most lenders will report your payments to the major credit bureaus just like other traditional lenders.

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