Advertiser Disclosure Car Loans: Review

June 19, 2018
Auto Loans, Loans
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3.5 NerdWallet rating

Good for: Borrowers with poor credit who want fast preapproval is a direct lender offering new and used car purchase loans, as well as auto loan refinancing. The lender provides fast preapproval decisions and loans to those who might not get financing from other sources.

CarFinance is a good fit for those who:

  • Want a fast decision: You can get preapproved within 30 minutes during business hours.
  • Have credit scores as low as 525: But borrowers with bad credit may have trouble finding a low interest rate. Shop around for the best rate.
  • Carry debt: will lend to borrowers with a debt load up to half their monthly income. But if you have this much debt, be cautious about taking on more. at a glance

Purchase loansRefinance loans
APR*7.99% - 14.99%7.99% - 21.99%
Loan amounts$7,500 - $45,000
Min requirementsCredit score: 525
Income: None
Hard credit check with application?Yes
Availability43 states and Washington, D.C.
*Annual percentage rate is used to evaluate the true cost of borrowing money and includes the interest rate. review details, managed by subprime lender Flagship Credit Acceptance, can help borrowers with high debt and fair-to-bad credit get a car loan. But such borrowers should proceed with caution when considering taking out a loan.

If your debt totals 40% or more of your income, adding more debt can be risky. Furthermore, borrowers with poor credit can face very high interest rates. First check your credit score and whether you have too much debt. It may be best to save up and buy a used car with cash or wait until your credit improves before applying for a loan.

That said, applying for a loan from is fairly straightforward. You can fill out the application online and get preapproved quickly. You might be asked to provide additional documents, which can be sent electronically. Note that requires a hard credit pull, which slightly lowers your credit score. This means it’s best for borrowers who are ready to commit to a loan.

Once you’re preapproved for a purchase loan, your “funding certificate” can be used at any franchised car dealership. Certificates may also be used at an independent dealership if the loan officer approves the transaction.

When evaluating refinance loan applications, says the most important factors are payment history on current auto loans and other debt and the ratio of total debt to income, including the potential debt from a loan.

Car loan rates

As with all auto financing, your interest rate on a loan from will depend on your credit, with lower scores resulting in higher rates. Lenders set their own requirements, but credit scores are generally categorized as follows:

  • 300-629: Bad credit
  • 630-689: Fair credit
  • 690-719: Good credit
  • 720 and up: Excellent credit generally lends to consumers with credit scores between 525 and 650, signaling its focus on borrowers with bad credit. Its loans have minimum APRs of 7.99% and as high as 14.99% for a purchase loan and 21.99% for a refinance loan. The higher your rate, the more you’ll pay in interest over the life of the loan.

If you know your credit score, you can get an idea of the interest rate you might qualify for. And remember, if you have bad credit it’s especially important to compare offers so you can find the best possible rate.

Applying to

  • Loan offers are good for up to 30 days
  • Can get preapproval in 30 minutes
  • Co-applicants allowed
  • No application fee; may charge late fees


  • Purchase loans: Generally can be used only at franchised dealerships
  • Refinance loans: Current loan must be open at least 3 months, but 6 months of on-time payments will increase your odds of approval, the lender says
  • Maximum vehicle age: 8 years
  • Maximum vehicle mileage: 100,000 miles for 60-month terms, 75,000 miles for 72-month terms
  • Loan terms: 36 months to 72 months
  • Excluded makes/models: Includes exotic cars, certain discontinued makes, motorcycles, and heavy-duty trucks
  • Not available in Hawaii, Massachusetts, Mississippi, Nevada, North Dakota or Oregon; purchase loans not available in New Hampshire

How compares lends to consumers who often have high debt and poor credit and might not get approved by other lenders. It also has no stated minimum income requirement; similar lenders often require applicants to make at least $1,100 per month.

The trade-off to these relaxed requirements is that has a higher minimum interest rate than other lenders. Here’s how’s purchase loan requirements stack up to those of other lenders.

CompanyMin credit scoreMin monthly incomeAPRsHard pull?Get started
3.5 NerdWallet rating
500$1,8002.74% - 27% Yes
3.5 NerdWallet rating
525None7.99% - 14.99% Yes
Consumers Credit Union
3.0 NerdWallet rating
640$500; $2,000 preferred2.99% - 21.99%Yes
5.0 NerdWallet rating
660None3.99% - 8.34%***Yes
Capital One
4.0 NerdWallet rating
500$1,500 - $1,800As low as 3.59%*No
*For excellent credit **Max varies by state ***With autopay discount

CompanyMin credit score, monthly incomeGet started
3.5 NerdWallet rating

3.5 NerdWallet rating

Consumers Credit Union
3.0 NerdWallet rating

$500; $2,000 preferred
5.0 NerdWallet rating

Capital One
4.0 NerdWallet rating

$1,500 - $1,800
3.0 NerdWallet rating


More from provides additional services and features to help borrowers manage their car loans.

The lender offers gap protection, also known as guaranteed asset protection insurance, which covers the difference between your loan balance and your car’s value — what your insurance company pays out on a claim. It also partners with insurance company Infinity for auto insurance.

» MORE: Infinity auto insurance review’s site features a blog, a customer resource center and a robust FAQ section. The lender’s monthly payment calculator can help you understand how a potential loan would fit into your budget.

Shopping for an auto loan


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Auto Loans Ratings METHODOLOGY

NerdWallet’s auto loans ratings reward lenders offering the most transparency and consumer-friendly features. Ratings are based on weighted averages of several categories, including flexibility of loan options, clarity of borrower requirements, accessibility, speed of funding and fees. Using our editorial discretion, we also consider consumer reviews and complaints. These ratings are a guide, but we encourage you to shop around to find the lowest interest rate you can qualify for. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

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