Best Bad Credit Auto Loans (The 2020 Edition)

Worried that bad credit will prevent you from getting a car loan? Or maybe you’re a credit newbie with very little income. Check out our best bad credit auto loans that can get you financed and riding in no time.

Best Bad Credit Auto Loans

Auto Credit Express

Auto Credit Express is an online lending service caters to prospective borrowers in the US and Canada with credit challenges. They have been around for 20 years and are accredited by the Better Business Bureau with an A+ rating.

Loan proceeds can be used for new and used vehicles, or to refinance an existing loan product. Financing for lease options is also available to borrowers with less than perfect credit. Even better, you may be able to qualify for a loan with as little as $500 down, and some lenders may not require a down payment at all. Another perk of using this service is that they may still be able to match you with a lender, even if you’ve recently filed for bankruptcy.

To explore loan options that may be available to you, simply fill out on the online form on their website. In less than three minutes, you’ll know if you qualify for auto loan financing from lenders in the Auto Credit Express network. There’s no impact on your credit score to use this service. But if you’d prefer to inquire about bad credit auto loan options by phone, you can also call 1-855-439-0814.

Blue Sky Auto Finance

Founded in 2004, Blue Sky Auto Finance is another well-known lending network that can help you get approved for a car loan, regardless of your credit rating. And past bankruptcies don’t automatically disqualify you for financing.

They work with a vast network of lenders and auto dealers nationwide and can help you qualify for a loan with an APR as low as 3.99 percent. Plus, you’ll have up to 72 months to repay the loan, which helps make the monthly payment more affordable.

When you submit your information using the three-step online form or by calling 1-800-BLUE SKY, they will use their auto loan and comparison tool to match you with up to four lenders that can help you get the financing you need. Loans are valued at up to $30,000 and can be used to purchase a new or used car, truck, or sports utility vehicle. You can also use the loan proceeds to refinance your existing auto loan if you wish to keep your current vehicle.

Capital One Auto Finance

While Capital One doesn’t cater specifically to consumers with less than perfect credit, you may be able to qualify for an auto loan with a credit score as low as 500. And what makes them stand out above the rest is that their one of very few mainstream lenders to do so.

You can use their Auto Navigator tool to not only secure financing but select a ride that best suits your needs through one of over 1,000 partnering dealers. The tool also makes it easy to find your dream ride by simply snapping a photo and using the “search by photo” feature to let the Auto Navigator do the work for you.

There’s no impact to your credit score, and you’ll be able to view pricing information (i.e. interest, monthly payment repayment terms) on the particular make and model you select directly from the dashboard. And if a particular repayment term, monthly payment, or downpayment doesn’t work for you, the tool gives you the option to customize a loan offer that’s not too tough on your wallet.

If you aren’t quite sure which vehicle you’d prefer, there’s an option to search all the vehicles at partnering dealerships by location or price. Even better, you can view real-time pricing information on any of the vehicles listed.

Loans are available on both new and used cars, trucks, minivans, and SUVs. However, the vehicle must be priced at $4,000 or more and not have over 120,000 miles. It must also not be older than a 2008 model year.

To receive a pre-qualified offer, complete the short online questionnaire or call 1-800-689-1789. Upon completion, you’ll receive an almost instantaneous response with your loan terms.

Cars Direct

Although they are not a direct lender, Cars Direct works with an array of dealerships and subprime lenders to help you get the financing you need for your ride, regardless of your credit history. That means little or no credit, along with past bankruptcies won’t disqualify you from getting a loan offer. They’ve been around for over 20 years and have served over 5 million customers.

Dealers and lenders in their network offer loans on new and used vehicles, or you can refinance your existing auto loan. You can explore your options by submitting the auto loan request form found on the website, which will give you a response in as little as one minute. The process can also be initiated by calling 1-888-227-7347 or initiating a live chat with one of their customer service representatives.

If Cars Direct finds a match, the lender will reach out to you within a 24-hour window to discuss your loan options. At that time, they will also tailor a loan solution for you and help you find a vehicle you can comfortably afford. was founded in 2011 and has served thousands of customers. They are a loan matching service that specializes in helping those with credit woes secure a loan for a new or used ride. You can also apply for a refinancing loan.

If you have a credit score of at least 525, you may qualify for financing. Even better, you may be able to qualify for a loan with a competitive interest rate without making a down payment, which is not common for subprime loans.

To explore your options, submit the online form. It only takes a few minutes of your time. And there’s no impact to your credit score. If approved, you’ll be able to use the Loan Driver tool to view detailed pricing information for your loan offer. Another major perk is that you’ll be able to complete the loan application process directly from your computer before you head to the dealership to pick out your ride.


Carvana offers auto loan solutions for borrowers with bad credit. What makes them unique is that they’re also an online dealer, so you’ll be dealing with a one-stop-shop which saves a ton of time and possibly money. All you need to qualify is an annual income of $10,000 or more and no active bankruptcies.

Fill out the online form and receive an instant response. It only takes two minutes, and submitting an inquiry won’t impact your credit score. And if you’re approved but need more time to evaluate your loan offer, explore other options, or prepare your finances for a new loan, you’ll have up to 45 days to make a decision.

You also have the option to adjust your desired loan amount, monthly payment, and down payment to best suit your needs. Best of all, you can view actual pricing information for the particular vehicle you’re interested in purchasing.

But in the unfortunate event that you’re unable to qualify for an auto loan product from Carvana, you may still be in luck. They work with several third-party lenders to help you get approved for a loan.


DriveTime is a one-stop shop for consumers with bad credit that are seeking an auto loan. You can choose a vehicle from their inventory of over 15,000 used cars, trucks, and SUVs.

If you’re ready to make a purchase, you can work directly with their in-house financing department to get approved for a loan. The online application is straight-forward and it only takes two minutes to receive a lending decision. You can also call 888-418-1212 to get the application started.

Once you’re approved, the next step is to peruse all the vehicles they have to offer. While doing so, you can also view loan details, including the monthly payment, interest rate, and minimum downpayment requirement, in-real time directly from the DriveTime dashboard.

And once you’ve selected the perfect ride, you can finalize the loan offer and hit the road in your new ride in no time. Another added benefit is that they’ll give you access to your credit score.

Liberty Auto Loan

Liberty Auto Loan offers bad credit auto loans to get your credit ranking back on track. They are a BBB Accredit Business that operates as a loan matching service to help borrowers with bad credit get the best deal on auto loan financing.

It only takes a few minutes to use the service. And even if you’ve recently filed for bankruptcy, you may still qualify for a loan. If you’re matched with a lender, expect to receive a response within a 24-hour window.


With over 18 years of experience, RoadLoans is a direct lender that specializes in car loans for those with less than perfect credit or credit newbies. You may also qualify for an auto loan on your next car, truck, or SUV purchase or refinance, even if you have a past bankruptcy on your credit profile.

With over 14,000 dealers across the United States in their network, you shouldn’t encounter any difficulty when searching for the perfect ride. You can also use the loan proceeds to refinance your current auto loan. You can apply for a loan directly from their website and receive an instant lending decision.


myAutoloan is another online search and comparison tool that can connect you with lenders with less than perfect credit. A FICO score of at least 500 and a monthly income of $1,800 may be enough to qualify for a loan.

When you apply, you’ll be matched with up to four lenders that may be able to assist. And if you are approved, the vehicle must be no older than 10 years old and have less than 125,000 miles. The loan amount must also be at least $8,000 to qualify for financing or refinancing.

How to Get Approved for a Bad Credit Auto Loan

Check Your Credit

Your credit score is an integral part of your profile that most lenders will weigh heavily when evaluating your loan application. And while it may be possible to get approved for an auto loan with a low credit score, working to improve this three-digit number only strengthens the odds of being approved for a loan with a lower interest rate and minimal down payment requirement.

So, it’s best to start by retrieving a free copy of your credit report at from each of the three credit bureaus – Equifax, Experian, and TransUnion – and reviewing them to confirm the accuracy of the contents. But should you spot any errors, dispute them promptly to ensure your credit score is updated to accurately reflect what’s in your credit report.

Run the Numbers

How much can you afford to pay each month for a car loan? And once the monthly payment is made, will there be enough wiggle room in your budget to cover insurance, routine maintenance and major repairs (as needed)?

Explore Lenders

While it may be convenient to go with the first lender that offers you a loan, specifically if you’ve had trouble securing financing because of your credit woes, it’s best to do your homework. Simply put, shopping around gives you the best chance of securing an auto loan with a competitive interest rate, which is especially important with subprime lenders that tend to charge sky-high interest rates to risky borrowers.

And no need to worry about multiple inquiries dragging down your credit score each time you apply for a loan. Why so? Well, the FICO credit scoring model allows you to apply for financing with several lenders and only counts a lone hard inquiry if the applications are submitted within a set period of time.

Apply with the Top Lenders

Once you’ve narrowed down your top three or four lenders, it’s time to start applying. Be prepared to provide your name, personal identifying information, employment data, and any corresponding documents to substantiate the data present on your application. This includes recent pay stubs, tax returns, and possibly bank statements.

Finalize the Loan Terms

Don’t settle for the first loan offer the lender presents you with. Instead, negotiate the terms to see if you can get a better deal. Something as simple as a one-percent reduction in the interest rate can save you hundreds, if not thousands over the life of the loan. And you may also be able to convince them to lower the minimum down payment requirement so you won’t have to put a large sum of money on the table right out the gate.

Sign on the Dotted Line

Before you commit to the loan, it’s important to read the fine print and ask about any contents that you need clarity on. And once you’ve done so, you can sign on the dotted line and rest assured knowing that you went the extra mile to find the best bad credit auto loan for you.

The Bottom Line

Subprime lenders offering exorbitant interest rates aren’t the only way to go when considering bad credit auto loans. Since there are scores of direct lenders with competitive financing offers, along with online search and loan comparison tools, you should be able to find an auto loan in no time, even if you have bad credit.

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