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15 Auto Loans for Good and Bad Credit

NerdWalletJune 24, 2020

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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.

Our picks for

Auto purchase

LightStream
Learn More

on LightStream's website

Min. Credit Score

660

Est. APR

3.49 - 11.89%

Loan Amount

$5,000 - $100,000

Best for borrowers with good credit looking for a no-hassle loan from a well-known bank.

Pros

  • Low starting rates.
  • Available in all 50 states.
  • No vehicle or mileage restrictions.

Cons

  • Hard credit check required.
  • High minimum credit score required.
Read full review

Qualifications

  • Minimum monthly income: None.
  • Maximum loan to value ratio: None.
  • Maximum mileage: None.
Capital One
Learn More

on Capital One's website

Min. Credit Score

None

Est. APR

2.99%

Loan Amount

$4,000

Best for borrowers who want to compare rates without a hard credit check.

Pros

  • Pre-qualify with a soft credit check.
  • Co-applicants allowed.

Cons

  • Not available in every state.
  • Offers loan terms over 60 months.
Read full review

Qualifications

  • Minimum monthly income: $1,500-$1,800.
  • Maximum loan to value ratio: Did Not Answer.
  • Maximum mileage: 120,000.
MyAutoLoan
Learn More

on MyAutoLoan's website

Min. Credit Score

575

Est. APR

2.05 - 24.90%

Loan Amount

$8,000 - $99,000

Best for fair-credit borrowers who want to get quotes from multiple lenders.

Pros

  • Compare offers from multiple lenders.
  • Allows co-signers.

Cons

  • Offers loan terms over 60 months.
  • Vehicle restrictions.
Read full review

Qualifications

  • Minimum monthly income: $1,800.
  • Maximum loan to value ratio: 140%.
  • Maximum mileage: 125,000.
Consumers Credit Union
Learn More

on Consumers Credit Union's website

Learn More

on Consumers Credit Union's website

Min. Credit Score

620

Est. APR

2.69 - 21.24%

Loan Amount

$5,000 - $150,000

Best for borrowers who want flexible loan terms and like the services offered by a credit union.

Pros

  • Low starting rates.
  • Available in all 50 states.

Cons

  • Hard credit check required.
  • You must become a member to get a loan.
Read full review

Qualifications

  • Minimum monthly income: $2,000.
  • Maximum loan to value ratio: 125%.
  • Maximum mileage: None.

Our picks for

Online purchase and financing

Carvana
Learn More

on Carvana's website

Min. Credit Score

None

Est. APR

3.90 - 27.90%

Loan Amount

$1,000 - $85,000

Best for used-car shoppers wanting a simple online shopping and financing experience.

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.
Read full review

Qualifications

  • Minimum monthly income: $833.
  • Maximum loan to value ratio: None.
  • Maximum mileage: 110,000.
Vroom

Vroom - Purchase loan

Min. Credit Score

None

Loan Amount

$5,000 - $100,000

Good for higher-end used-car shoppers who want to buy and finance a car online.

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.
Read full review

Qualifications

  • Minimum monthly income: $1,800.
  • Maximum loan to value ratio: Did not answer.
  • Maximum mileage: 100,000.

Our picks for

Auto loan refinancing

LightStream
Learn More

on LightStream's website

Min. Credit Score

660

Est. APR

3.49 - 11.89%

Loan Amount

$5,000 - $100,000

Best for borrowers with good credit looking for a no-hassle loan from a well-known bank.

Pros

  • Low starting rates.
  • Available in all 50 states.
  • No vehicle or mileage restrictions.

Cons

  • Hard credit check required.
  • High minimum credit score required.
Read full review

Qualifications

  • Minimum monthly income: None.
  • Maximum vehicle age: None.
  • Maximum mileage: None.
  • Maximum loan to value ratio: None.
MyAutoLoan
Learn More

on MyAutoLoan's website

Min. Credit Score

575

Est. APR

2.05 - 29.40%

Loan Amount

$5,000 - $99,000

Best for fair-credit borrowers and getting quotes from multiple lenders.

Pros

  • Offers marketplace to compare loans from multiple lenders.
  • Allows co-signers.

Cons

  • Offers loan terms over 60 months.
  • Vehicle restrictions.
Read full review

Qualifications

  • Minimum monthly income: $1,800.
  • Maximum vehicle age: 10 years.
  • Maximum mileage: 125,000.
  • Maximum loan to value ratio: 140%.
RefiJet
Learn More

on RefiJet's website

Min. Credit Score

580

Est. APR

2.45 - 17.99%

Loan Amount

$7,500 - $150,000

Best for fair or good-credit refinance applicants who want to shop rates.

Pros

  • Prequalify with a soft credit check.
  • Offers marketplace to compare loans from multiple lenders.

Cons

  • Offers loan terms over 60 months.
Read full review

Qualifications

  • Minimum monthly income: $2,000.
  • Maximum vehicle age: 10 years.
  • Maximum mileage: 200,000.
  • Maximum loan to value ratio: 150%.
RateGenius
Learn More

on RateGenius's website

Min. Credit Score

550

Est. APR

1.99 - 16.00%

Loan Amount

$12,000 - $100,000

Best for fair or good-credit refinance applicants who don’t mind checking rates with a hard credit pull.

Pros

  • Offers marketplace to compare loans from multiple lenders.
  • Available in all 50 states.

Cons

  • Hard credit check required.
  • Vehicle restrictions.
Read full review

Qualifications

  • Minimum monthly income: $2,000.
  • Maximum vehicle age: 7 years.
  • Maximum mileage: 100,000.
  • Maximum loan to value ratio: 120%.
Autopay
Learn More

on Autopay's website

Min. Credit Score

600

Est. APR

1.99 - 17.99%

Loan Amount

$2,500 - $100,000

Best for borrowers with fair credit who want to quickly compare offers.

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.
Read full review

Qualifications

  • Minimum monthly income: $2,000.
  • Maximum vehicle age: 11 years.
  • Maximum vehicle mileage: 125,000.
  • Maximum loan to value ratio: Did Not Answer.
Tresl
Learn More

on Tresl's website

Min. Credit Score

500

Est. APR

2.49 - 23.99%

Loan Amount

$5,000 - $100,000

Best for bad- or fair-credit applicants looking for hands-on help with vehicle transfer paperwork.

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.
Read full review

Qualifications

  • Minimum monthly income: $1,500.
  • Maximum vehicle age: 10 years.
  • Maximum mileage: 150,000.
  • Maximum loan to value ratio: 150%.
Clearlane
Learn More

on Clearlane's website

Min. Credit Score

580

Est. APR

3.99 - 7.74%

Loan Amount

$10,000 - $80,000

Best for borrowers with average credit who want to quickly compare offers.

Pros

  • Prequalify with a soft credit check.
  • Allows co-signers.

Cons

  • High minimum income required.
  • Offers loan terms over 60 months.
Read full review

Qualifications

  • Minimum monthly income: $2,000.
  • Maximum vehicle age: 10 years.
  • Maximum mileage: 120,000.
  • Maximum loan to value ratio: 155%.
Consumers Credit Union
Learn More

on Consumers Credit Union's website

Learn More

on Consumers Credit Union's website

Min. Credit Score

620

Est. APR

2.69 - 21.24%

Loan Amount

$5,000 - $150,000

Best for borrowers who want flexible loan terms and like the services offered by a credit union.

Pros

  • Low starting rates.
  • No vehicle restrictions.

Cons

  • Hard credit check required.
  • You must become a member to get a loan.
Read full review

Qualifications

  • Minimum monthly income: $2,000.
  • Maximum vehicle age: None.
  • Maximum mileage: None.
  • Maximum loan to value ratio: 125%.
Lending Club
Learn More

on Lending Club's website

Min. Credit Score

510

Loan Amount

$5,000 - $55,000

Best for refinance applicants who want to see two different loan term options.

Pros

  • Allows co-signers.
  • Prequalify with a soft credit check.

Cons

  • Vehicle restrictions.
  • Not available in every state.
Read full review

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

LenderMin. Credit ScoreEst. APRLoan AmountLearn More
LightStream

LightStream - Purchase loan

Learn More

on LightStream's website

660

3.49 - 11.89%

$5,000 - $100,000

Learn More

on LightStream's website

Capital One

Capital One - Purchase loan

Learn More

on Capital One's website

None

2.99%

$4,000

Learn More

on Capital One's website

MyAutoLoan

MyAutoLoan - Purchase loan

Learn More

on MyAutoLoan's website

575

2.05 - 24.90%

$8,000 - $99,000

Learn More

on MyAutoLoan's website

Consumers Credit Union

Consumers Credit Union - Purchase loan

Learn More

on Consumers Credit Union's website

620

2.69 - 21.24%

$5,000 - $150,000

Learn More

on Consumers Credit Union's website

Carvana

Carvana - Purchase loan

Learn More

on Carvana's website

None

3.90 - 27.90%

$1,000 - $85,000

Learn More

on Carvana's website

Vroom

Vroom - Purchase loan

None

N/A

$5,000 - $100,000

LightStream

LightStream - Refinance loan

Learn More

on LightStream's website

660

3.49 - 11.89%

$5,000 - $100,000

Learn More

on LightStream's website

MyAutoLoan

MyAutoLoan - Refinance loan

Learn More

on MyAutoLoan's website

575

2.05 - 29.40%

$5,000 - $99,000

Learn More

on MyAutoLoan's website

RefiJet

RefiJet - Refinance loan

Learn More

on RefiJet's website

580

2.45 - 17.99%

$7,500 - $150,000

Learn More

on RefiJet's website

RateGenius

RateGenius - Refinance loan

Learn More

on RateGenius's website

550

1.99 - 16.00%

$12,000 - $100,000

Learn More

on RateGenius's website

Autopay

Autopay - Refinance loan

Learn More

on Autopay's website

600

1.99 - 17.99%

$2,500 - $100,000

Learn More

on Autopay's website

Tresl

Tresl - Refinance loan

Learn More

on Tresl's website

500

2.49 - 23.99%

$5,000 - $100,000

Learn More

on Tresl's website

Clearlane

Clearlane - Refinance loan

Learn More

on Clearlane's website

580

3.99 - 7.74%

$10,000 - $80,000

Learn More

on Clearlane's website

Consumers Credit Union

Consumers Credit Union - Refinance loan

Learn More

on Consumers Credit Union's website

620

2.69 - 21.24%

$5,000 - $150,000

Learn More

on Consumers Credit Union's website

Lending Club

Lending Club - Refinance loan

Learn More

on Lending Club'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.

Average auto loan rates by credit score

Credit score

Average APR, new car

Average APR, used car

Superprime: 781-850

3.65%

4.29%

Prime: 661-780

4.68%

6.04%

Nonprime: 601-660

7.65%

11.26%

Subprime: 501-600

11.92%

17.74%

Deep subprime: 300-500

14.39%

20.45%

Source: Experian Information Solutions

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.

Auto loan rate data courtesy Experian.

Last updated on June 24, 2020

To recap our selections...

NerdWallet's Auto Loans for Good and Bad Credit

Frequently asked questions