Best of
15 Auto Loans for Good and Bad Credit
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Compare car loans from multiple lenders to find your best rate and learn what you need to know before you apply.
Shopping for the lowest interest rate on your auto loan before you buy your next car puts you in a stronger negotiating position and saves you money over the life of your loan. If you already have a loan, you may be able to lower your monthly payment and save money by refinancing your car loan.
You can comparing multiple offers for auto purchase loans, auto loan refinancing, even online car dealers with financing.
Shopping for the lowest interest rate on your auto loan before you buy your next car puts you in a stronger negotiating position and saves you money over the life of your loan. If you already have a loan, you may be able to lower your monthly payment and save money by refinancing your car loan.
You can comparing multiple offers for auto purchase loans, auto loan refinancing, even online car dealers with financing.
Our picks for
Auto purchase
on LightStream's website
on LightStream's website
Min. Credit Score
660
Est. APR
3.49 - 11.89%
Loan Amount
$5,000 - $100,000
Pros
- Low starting rates.
- Available in all 50 states.
- No vehicle or mileage restrictions.
Cons
- Hard credit check required.
- High minimum credit score required.
Qualifications
- Minimum monthly income: None.
- Maximum loan to value ratio: None.
- Maximum mileage: None.
on Capital One's website
on Capital One's website
Min. Credit Score
None
Est. APR
2.99%
Loan Amount
$4,000
Pros
- Pre-qualify with a soft credit check.
- Co-applicants allowed.
Cons
- Not available in every state.
- Offers loan terms over 60 months.
Qualifications
- Minimum monthly income: $1,500-$1,800.
- Maximum loan to value ratio: Did Not Answer.
- Maximum mileage: 120,000.
on MyAutoLoan's website
on MyAutoLoan's website
Min. Credit Score
575
Est. APR
2.05 - 24.90%
Loan Amount
$8,000 - $99,000
Pros
- Compare offers from multiple lenders.
- Allows co-signers.
Cons
- Offers loan terms over 60 months.
- Vehicle restrictions.
Qualifications
- Minimum monthly income: $1,800.
- Maximum loan to value ratio: 140%.
- Maximum mileage: 125,000.
on Consumers Credit Union's website
on Consumers Credit Union's website
Min. Credit Score
620
Est. APR
2.69 - 21.24%
Loan Amount
$5,000 - $150,000
Pros
- Low starting rates.
- Available in all 50 states.
Cons
- Hard credit check required.
- You must become a member to get a loan.
Qualifications
- Minimum monthly income: $2,000.
- Maximum loan to value ratio: 125%.
- Maximum mileage: None.
Our picks for
Online purchase and financing
on Carvana's website
on Carvana's website
Min. Credit Score
None
Est. APR
3.90 - 27.90%
Loan Amount
$1,000 - $85,000
Pros
- No minimum credit score requirement.
- Prequalify with a soft credit check.
Cons
- Finances vehicles only sold through Carvana.
- Offers loan terms over 60 months.
Qualifications
- Minimum monthly income: $833.
- Maximum loan to value ratio: None.
- Maximum mileage: 110,000.
Vroom - Purchase loan
Min. Credit Score
None
Loan Amount
$5,000 - $100,000
Pros
- Prequalify with a soft credit check.
- Compare offers from multiple lenders.
- Trade-ins accepted.
Cons
- Finances vehicles only sold through Vroom.
- Requires high minimum income.
Qualifications
- Minimum monthly income: $1,800.
- Maximum loan to value ratio: Did not answer.
- Maximum mileage: 100,000.
Our picks for
Auto loan refinancing
on LightStream's website
on LightStream's website
Min. Credit Score
660
Est. APR
3.49 - 11.89%
Loan Amount
$5,000 - $100,000
Pros
- Low starting rates.
- Available in all 50 states.
- No vehicle or mileage restrictions.
Cons
- Hard credit check required.
- High minimum credit score required.
Qualifications
- Minimum monthly income: None.
- Maximum vehicle age: None.
- Maximum mileage: None.
- Maximum loan to value ratio: None.
on MyAutoLoan's website
on MyAutoLoan's website
Min. Credit Score
575
Est. APR
2.05 - 29.40%
Loan Amount
$5,000 - $99,000
Pros
- Offers marketplace to compare loans from multiple lenders.
- Allows co-signers.
Cons
- Offers loan terms over 60 months.
- Vehicle restrictions.
Qualifications
- Minimum monthly income: $1,800.
- Maximum vehicle age: 10 years.
- Maximum mileage: 125,000.
- Maximum loan to value ratio: 140%.
on RefiJet's website
on RefiJet's website
Min. Credit Score
580
Est. APR
2.45 - 17.99%
Loan Amount
$7,500 - $150,000
Pros
- Prequalify with a soft credit check.
- Offers marketplace to compare loans from multiple lenders.
Cons
- Offers loan terms over 60 months.
Qualifications
- Minimum monthly income: $2,000.
- Maximum vehicle age: 10 years.
- Maximum mileage: 200,000.
- Maximum loan to value ratio: 150%.
on RateGenius's website
on RateGenius's website
Min. Credit Score
550
Est. APR
1.99 - 16.00%
Loan Amount
$12,000 - $100,000
Pros
- Offers marketplace to compare loans from multiple lenders.
- Available in all 50 states.
Cons
- Hard credit check required.
- Vehicle restrictions.
Qualifications
- Minimum monthly income: $2,000.
- Maximum vehicle age: 7 years.
- Maximum mileage: 100,000.
- Maximum loan to value ratio: 120%.
on Autopay's website
on Autopay's website
Min. Credit Score
600
Est. APR
1.99 - 17.99%
Loan Amount
$2,500 - $100,000
Pros
- Prequalify with a soft credit check.
- Offers marketplace to compare loans from multiple lenders.
- Allows co-applicants.
Cons
- Offers loan terms over 60 months.
- Vehicle restrictions.
Qualifications
- Minimum monthly income: $2,000.
- Maximum vehicle age: 11 years.
- Maximum vehicle mileage: 125,000.
- Maximum loan to value ratio: Did Not Answer.
on Tresl's website
on Tresl's website
Min. Credit Score
500
Est. APR
2.49 - 23.99%
Loan Amount
$5,000 - $100,000
Pros
- Low minimum credit score requirement.
- Prequalify with a soft credit check.
- Available in all 50 states.
Cons
- Offers loan terms over 60 months.
- Vehicle restrictions.
Qualifications
- Minimum monthly income: $1,500.
- Maximum vehicle age: 10 years.
- Maximum mileage: 150,000.
- Maximum loan to value ratio: 150%.
on Clearlane's website
on Clearlane's website
Min. Credit Score
580
Est. APR
3.99 - 7.74%
Loan Amount
$10,000 - $80,000
Pros
- Prequalify with a soft credit check.
- Allows co-signers.
Cons
- High minimum income required.
- Offers loan terms over 60 months.
Qualifications
- Minimum monthly income: $2,000.
- Maximum vehicle age: 10 years.
- Maximum mileage: 120,000.
- Maximum loan to value ratio: 155%.
on Consumers Credit Union's website
on Consumers Credit Union's website
Min. Credit Score
620
Est. APR
2.69 - 21.24%
Loan Amount
$5,000 - $150,000
Pros
- Low starting rates.
- No vehicle restrictions.
Cons
- Hard credit check required.
- You must become a member to get a loan.
Qualifications
- Minimum monthly income: $2,000.
- Maximum vehicle age: None.
- Maximum mileage: None.
- Maximum loan to value ratio: 125%.
on Lending Club's website
on Lending Club's website
Min. Credit Score
510
Loan Amount
$5,000 - $55,000
Pros
- Allows co-signers.
- Prequalify with a soft credit check.
Cons
- Vehicle restrictions.
- Not available in every state.
Qualifications
- Minimum monthly income: Did not answer.
- Maximum vehicle age: 10 years.
- Maximum mileage: 120,000.
- Maximum loan to value ratio: Did not answer.
Summary of Auto Loans for Good and Bad Credit
| Lender | Min. Credit Score | Est. APR | Loan Amount | Learn More |
|---|---|---|---|---|
660 | 3.49 - 11.89% | $5,000 - $100,000 | Learn More on LightStream's website | |
None | 2.99% | $4,000 | Learn More on Capital One's website | |
575 | 2.05 - 24.90% | $8,000 - $99,000 | Learn More on MyAutoLoan's website | |
620 | 2.69 - 21.24% | $5,000 - $150,000 | Learn More on Consumers Credit Union's website | |
None | 3.90 - 27.90% | $1,000 - $85,000 | Learn More on Carvana's website | |
Vroom - Purchase loan | None | N/A | $5,000 - $100,000 | |
660 | 3.49 - 11.89% | $5,000 - $100,000 | Learn More on LightStream's website | |
575 | 2.05 - 29.40% | $5,000 - $99,000 | Learn More on MyAutoLoan's website | |
580 | 2.45 - 17.99% | $7,500 - $150,000 | Learn More on RefiJet's website | |
550 | 1.99 - 16.00% | $12,000 - $100,000 | Learn More on RateGenius's website | |
600 | 1.99 - 17.99% | $2,500 - $100,000 | Learn More on Autopay's website | |
500 | 2.49 - 23.99% | $5,000 - $100,000 | Learn More on Tresl's website | |
580 | 3.99 - 7.74% | $10,000 - $80,000 | Learn More on Clearlane's website | |
620 | 2.69 - 21.24% | $5,000 - $150,000 | Learn More on Consumers Credit Union's website | |
510 | N/A | $5,000 - $55,000 | Learn More on Lending Club's website |
What to know before you apply for an auto loan
Interest rates: The interest rate you’ll get depends on your credit score and income, the length of the loan you choose and the vehicle. If you have a loan and make consistent, on-time payments and your credit score improves, you may be able to refinance your car loan to get a better rate and lower your monthly payment.
Loan terms: Some lenders offer loans for up to 84 months. However, it’s best to pay off a car loan quickly since cars depreciate rapidly. Owing more on the loan than the car is worth is called being “underwater” or “upside down,” which is a risky financial situation. Also, the best interest rates are available for shorter loan terms. NerdWallet recommends 60 months for new cars and 36 months for used cars.
“Soft” vs. “hard” credit pull: Some lenders do a “soft pull” of your credit to pre-qualify you for a loan. This doesn’t damage your credit score, but it also doesn’t guarantee you’ll be approved for a loan or get the exact rate you’re quoted. Other providers run a full credit check, which temporarily lowers your credit score by a few points. But again, your final rate could differ slightly from your preapproval quote. A hard pull will be required in all cases before a loan is finalized.
Rate shopping: Applying to several lenders helps you find the most competitive interest rate. However, it can lead to your being contacted by multiple lenders, or even dealers when you apply for a purchase loan, especially if you use a service that compares offers for you (such as myAutoloan).
Make all applications within a short rate-shopping window. Credit reporting agencies count multiple hard inquiries made within a certain period — usually 14, 30 or 45 days — as only one inquiry. However it’s also smart to check your credit score afterward to be sure this is the case.
If you’re worried about getting overwhelmed by calls and emails, create a new email account and get a free Google Voice phone number that you can check separately.
Also check the loan terms that your bank or credit union offers. Their rates can be competitive with those of online lenders.
Restrictions: Some lenders only work with a network of dealerships. Others won’t lend money to buy cars from private sellers. Lenders may also exclude some makes of cars, certain models and types of vehicles, such as electric cars.
Funding: Once the loan is finalized, the lender will offer you a loan with a maximum amount at a stated interest rate. For purchase loans, lenders provide the money in a variety of ways: a no-obligation check, direct deposit to your bank account or a certificate to be used at a car dealership. For auto refinance loans, the lender typically pays off your old lender and you begin making payments to the new lender.
Last updated on June 24, 2020
To recap our selections...
NerdWallet's Auto Loans for Good and Bad Credit
- LightStream - Purchase loan: Best for Auto purchase
- Capital One - Purchase loan: Best for Auto purchase
- MyAutoLoan - Purchase loan: Best for Auto purchase
- Consumers Credit Union - Purchase loan: Best for Auto purchase
- Carvana - Purchase loan: Best for Online purchase and financing
- Vroom - Purchase loan: Best for Online purchase and financing
- LightStream - Refinance loan: Best for Auto loan refinancing
- MyAutoLoan - Refinance loan: Best for Auto loan refinancing
- RefiJet - Refinance loan: Best for Auto loan refinancing
- RateGenius - Refinance loan: Best for Auto loan refinancing
- Autopay - Refinance loan: Best for Auto loan refinancing
- Tresl - Refinance loan: Best for Auto loan refinancing
- Clearlane - Refinance loan: Best for Auto loan refinancing
- Consumers Credit Union - Refinance loan: Best for Auto loan refinancing
- Lending Club - Refinance loan: Best for Auto loan refinancing
Frequently asked questions
Preapproval allows you to focus on the price of the car rather than a monthly payment. If the finance office at the dealer can beat your preapproved loan interest rate, check to make sure the terms match.
Refinancing replaces your current auto loan with a new one from another lender. If the interest rate is lower, you can pay off the car quicker by keeping your payment the same, or you could opt for lower payments over the same term.
Refinance your car loan if your credit has improved since you bought your car — you can probably save money on car insurance as well. Some people refinance to extend the loan because current payments have become unaffordable. And interest rates in general may have dropped.
