5.99%
24 to 72 months
$500-$100,000
No minimum credit score
CarMax offers some great perks. One of them is its Three-Day Payoff Program. If a competitor offers you a cheaper rate within three days of your car purchase, you can back out of your CarMax loan with no extra fees. Plus, you could get your car delivered to your home for free if you live within 60 miles of a CarMax dealership in certain areas.
As CarMax’s in-house financing arm, CarMax Financial loans are only available at CarMax dealerships. And since CarMax only sells used cars, a new car is off the table.
Read our full CarMax Auto Finance review.
CarMax Financial doesn’t have a minimum credit score requirement. It will review your credit history to check for on-time payments. And while CarMax doesn’t require it, making a down payment on your car can help you get a better rate.
Also, you won’t find CarMax in Alaska, Arkansas, Hawaii, Montana, North Dakota, South Dakota, Vermont, West Virginia and Wyoming.
6.09%
36 to 72 months
Starting at $4,000
Not specified
You can get a preapproved car loan on Capital One’s website. It requires a hard credit hit and works similarly to a check made out to the dealer in the amount you qualify for. This can help you stay within your budget and give you negotiating power, too.
Capital One doesn’t specify its minimum credit score requirements, but internal LendingTree data shows it offers bad credit car loans. However, you can only use Capital One auto loans (preapprovals and otherwise) at select partner dealers.
Read our full Capital One auto loan review.
Capital One doesn’t specify its borrower requirements, but the following vehicles are ineligible for financing:
7.90%
36 to 78 months
Starting at $1,000
No minimum credit score
Instead of heading to a dealership, you could buy a car from Carvana. This used car website does everything digitally. You won’t get to see the car in person until you buy it, but you do have seven days to return your purchase if you aren’t happy.
Carvana has faced several lawsuits regarding tag and titling issues, which is something to consider. Also, as of this writing, there are only 40 Carvana locations across the country (which is where you’ll pick up your car).
Read our full Carvana Financing review.
To qualify for Carvana Financing, you must:
Not specified
48 to 72 months
Up to $50,000
No minimum credit score
Getting a car loan after bankruptcy can be tricky, but Westlake Financial could help. This lender is ok with bankruptcies and may even work with you if you have no credit.
Still, just because you qualify for a Westlake Financial car loan doesn’t mean it’ll be cheap. You could expect to pay high rates — as well as hundreds in fees — if your score is truly poor (580 or less).
Read our full Westlake Financial auto loan review.
Westlake Financial has very few requirements. It may still help you buy a car if you have:
Also, note that you can only get a Westlake Financial auto loan if you buy through a dealer in its network.
 Jacob Channel, senior economist |
“Even if your credit is less than ideal, sometimes you just can’t put off buying a car. Fortunately, there are auto lenders who work with borrowers with poor credit. While these loans will likely come with steeper rates, they can be helpful if you truly need a new set of wheels. If you do have bad credit, it can pay to shop around and compare offers from different lenders before you buy.” |
Jacob points out that no two loans are alike. Every lender has its own way of calculating rates. Just like insurance, you have to compare rates before you can be confident you’re getting the best deal.
It’s possible to get a car loan with a 500 credit score, but the lender might have other requirements, too. You might also need to earn a certain amount of money every year or have been at your job for a specific length of time.
The best way to see if you qualify for an auto loan is to prequalify. It doesn’t require a hard credit hit, so prequalifying won’t negatively impact your credit.
There is no standard lowest credit score for a bad credit auto loan. Some lenders don’t require a specific credit score at all. Keep in mind that the easier it is to get a loan, the more expensive that loan will probably be. Even if you have bad credit, shop around and compare offers to find the loan that’s best for you.
Generally, buy here, pay here car lots are the easiest places to get financing from. That said, you might have other less-expensive options. Buy here, pay here dealerships are often predatory.
Instead, prequalify online with a few lenders to make sure that you truly have no other option. That, or skip financing altogether and pay cash for a cheap used car.
