Best Bad Credit Auto Loans in 2022

Best Bad Credit Auto Loans in 2022

These days in 2022, many different reasons can cause you to have a bad rate. Our editors understand that more and more consumers face such a problem. We are sure that not ideal history does not equal the buyer’s complete insolvency. 

Many different reasons can cause this situation. Some companies agree with this statement, so we selected nine companies that will provide it for buyers with a not-very-good history. In our article, we will tell you about the best car loans for bad credit, answer the most common questions about this issue, give some recommendations and help you choose a service so that you will soon become a car owner.

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Bad Credit Car Loans

We can confidently say that a bad rate doesn’t necessarily mean you can’t buy cars. The good news is that many buyers can get car loans for bad credit. Choose among trusted services like to be sure you have the best credit conditions.

The companies we’ll cover in our article will help you enjoy many of the same conveniences as buyers with a better rate, such as pre-approval. After reading and considering your specific situation, you can choose a good company to help you buy an auto. Because all cases are different and for different people, other companies’ offers may be better depending on the circumstances.

Consumers Credit Union

Consumers Credit Union

Best for customers who want to take advantage of special discounts.

Consumers Credit Union: This company originates from the state of Illinois. The company currently operates throughout the United States. An important aspect is that you need to be a member of this company to get a car loan, but the joining process is quite simple.


  • Terms: no minimum period and up to 84 months.
  • Amounts: from USD 7,500 USA
  • Credit score: none
  • Average APR, new auto: 3.49-17.54%
  • Average APR, used auto: 3.49-17.54%


  • You can place an order online, by phone, in-store, or at authorized dealerships in Illinois and Southern Wisconsin.
  • You can also buy an auto online using this service with prior credit approval.
  • Allows cosigners.


  • It would help if you were a member to get a car loan from this company, but the joining process is quite simple.
  • You must provide your social security number to calculate the rate you will receive a car loan.

This company has almost 200,000 customers in all 50 states. They mustn’t have a minimum rating requirement, but the lower your rating, the higher the percentage.


Clearlane Auto Loan

Best for car buyers looking for a simple online application process and the ability to view previous offers. Such a revision will affect their rating.

It is important to note that with the help of this company, you can use only two types of car loans for bad credit, loan financing, and lease buyout. This means you cannot buy a new or used car here. The company operates in all states except Nevada and Vermont, which is also worth considering.


  • Terms: 36 to 72 months
  • Amounts: $5,000-$99,999
  • Credit score: 520
  • Average APR, new auto: –
  • Average APR, used auto: 6.99-20.74%


  • there are no registration fees
  • can be a cosigner


  • limited types of auto lending available
  • higher interest rates than competitors
  • Can’t get a loan in Nevada, Vernonia, or Washington, DC

This company has much higher interest rates than other similar ones. With the help of this company, you cannot use all types of car loans.


Autopay Auto Loan

Best for applicants who want multiple pre-qualified offers to compare.

This company is an aggregator for auto lending, founded in 2007. It is worth saying that AUTOPAY cooperates with its network of more than 180 lenders to provide bad credit auto loan refinancing, car loans, and cash financing. It also gives bad credit car loans.

Candidates usually receive 2-4 pre-qualification rates, after which you can choose the great option.


  • Terms: 24-96 months.
  • Amounts: $2,500-$100,000
  • Credit score: minimum is 560.
  • Average APR, new auto: 1.99-17.99%
  • Average APR, used auto: 1.99-17.99%


  • Some lenders cooperating with this company have a discount on the rate with automatic payment.
  • You can choose a lending repayment date convenient for you.
  • Allows cosigners.
  • You can use the service even on Saturday.


  • Lending approval takes 24-48 hours, slightly longer than the average for other companies.
  • Funding the lending can take 1-2 weeks, somewhat longer than other companies’ average.

If you want to use this service, you need to consider that the service offers good conditions for users with the highest rating. If your rating is lower than average, you will still be able to use the service, but the monthly payment percentage will be slightly higher.

Auto Credit Express

Auto Credit Express

Best for clients with not good history.

It is worth noting that Auto Credit Express does not issue car credit auto loan on its own. This company searches for buyers with suitable dealers and lenders who can provide a credit car loan based on the information given by the applicant.


  • Terms: 24-84 months.
  • Amounts USD 20,000 (new) USD 5,000 (used) – max. not disclosed
  • Credit score: 400
  • Average APR, new auto – each case is unique
  • Average APR used auto – each case is unique


  • Suitable for buyers with a poor rate.
  • Finds lenders with the most flexible requirements for buyers.


  • You can only buy in the Auto Express dealer network.
  • Social Security Number is required for the initial application.

This is an excellent service for those who want to get bad credit car financing because they allow the lowest ratings for the buyer. In addition, an important aspect is that this company works with limited dealers.

Best Bad Credit Auto Loans

Auto Approve

Best for those who want to quickly refinance existing lending at a low-interest rate while having a less-than-ideal credit history.

Auto Approve works with its extensive network of lenders, consisting of banks, finance companies, and credit unions in the USA.


  • Terms: from 1 to 7 years
  • Amounts: 7,500 to 150,000 USD
  • Credit score: no minimum rate
  • Average APR, new auto: –
  • Average APR, used auto: 1.99-17.99%


  • This company has relatively high ratings from customers
  • They have small rates for customers with good rate
  • Available to borrowers with a poor rate
  • Simple registration process


  • limited types of bad credit auto loan available

Even though there are online reviews about problems with this service, this company provides good services. We encourage you to review and compare these company options before deciding on your new vehicle lending refinance provider.


Carvana Auto Loan

Best for buyers of used cars who want to buy a car online without unnecessary hassles with documents.

Carvana is an online used vehicle dealer. At the same time, this company also engages in lending those cars that are at their disposal. The whole process is completely automated and takes place online. Carvana stores more than 25,000 cars. In addition, this company can buy your old vehicle or exchange it for another one.


  • Terms: 12-72 months.
  • Amounts: 1,000-100,000 USD
  • Credit score: 450
  • Average APR, new auto: –
  • Average APR, used auto 3.90-27.90%


  • This company works 24/7! Seven days a week!
  • You can change the date of your next payment yourself through a particular application.
  • The application process is 100% online, including uploading documents.
  • It has one of the lowest minimum lending amounts on the market.


  • The maximum possible annual interest rate is higher than many other lenders.
  • Only finances vehicles sold through Carvana.
  • Not available in Alaska and Hawaii.

This service is 100% suitable for you if you are looking for an inexpensive vehicle with a low-interest rate on lending. In addition, one of the disadvantages of this service is that it does not work in the entire territory of the United States, so be careful before contacting this company.



The best for buyers who want to quickly get lending offers from many lenders to purchase a new or used vehicle.

This company was founded back in 2003.

The company selects offers from 4 lenders for you. It works with a relatively wide range, including lending for purchasing new and used cars, loans for purchasing private individuals, lending for refinancing, credit car loans, and cash refinancing.


  • Terms 24-84 months for auto purchase; 24-72 for vehicle refinancing; 24-82 for lease buyout.
  • Amounts: $8,000-$100,000
  • Credit score: 575
  • Average APR, new auto 3.69-21.00%
  • Average APR, used auto 3.69-21.00%


  • You can get up to 4 different offers
  • Most lenders can provide approval within 30 seconds of applying.
  • You can get a discount if you activate an automatic payment.


  • Social Security Number is required for the initial application.
  • Not available in several states.

You can get lending even if you have a low credit score, but you will have to pay higher interest rates. Your decision may also be influenced by the fact that the company will offer different tariffs from 4 suppliers so that you choose the great one for you.



Best for buyers who want guidance on the lease buyout process, including the transfer of ownership. In addition, the company is suitable for those who like to solve problems on Saturday.

This company was founded in 1999. You can get a wide variety of vehicle lending here. In particular, they do refinance, lending for leasing cars, and refinancing with cash. The company does not offer car loans for investments. Also, it is essential to note that this aggregator cooperates with more than 180 self-collected partners to find a great loan for applicants.


  • Terms: 36-84 months
  • Amounts: 12,000-100,000 USD
  • Credit score: 500
  • Average APR, new auto 1.75-21.00%
  • Average APR, used auto 1.75-21.00%


  • This company provides service on Saturdays.
  • This company offers a soft check.
  • You can get a discount if you activate an automatic payment.


  • The minimum loan amount is higher than that of other lenders.
  • Mileage limits are lower than other lenders.

First, the company works on Saturdays, so if you are late for work during the week, you can solve your vehicle questions on the day off. Also, the company has one of the lowest interest rates for lending, subject to a high rating.

Capital One Auto Refinance

Capital One Auto Refinance

Best for those buyers who want to check rates before buying without affecting their score and buying on the Capital One Auto Navigator network.

This company gives its customers assistance with financing new and used cars. A mandatory condition for financing is to choose among the network of dealers. In addition, the company also provides refinancing of existing lending. You can apply for a loan pre-qualification offer on the company’s website or through a unique branded mobile application.


  • Terms: no restrictions
  • Amounts: 4000 USD – max. not disclosed
  • Credit score: Did not disclose
  • Average APR, new auto – each case is unique
  • Average APR used auto – each case is unique


  • You can choose a loan repayment date that is convenient for you.
  • The verification is much softer than other companies.


  • You should buy an auto only from partners of this company
  • Not available in several states.
  • Social Security Number is required for the initial application.

This service will help you if you want to check the available loan options before buying, as well as if you are sure that you want to buy a car through the dealer of this company.

What is Bad Credit For an Auto Loan?

A bad credit car loan is essentially an ordinary loan, but it has a name because of some features.

It got its name because such lending is available to borrowers with a below-average credit score, usually 580 or below. Companies consider drivers with such a rating less solvent because of their rating, so loan terms may not be as favorable as for drivers with a perfect rating, or lenders may be hesitant to offer bad credit auto loan on terms that are favorable to borrowers.

That is why future vehicle owners with a low rating can find favorable loan conditions are not accessible. Bad credit auto loan lenders generally prefer working with drivers with good rate who are considered less risky. However, some companies still work with such drivers.

Where To Get Auto Loans For Bad Credit

As mentioned in the previous section, bad credit car financing is possible. This is why some types of companies help drivers in such situations. Such companies include the following types:

  1. Traditional banks. Traditional banks can give lending to drivers with poor rate. However, it is worth saying that quite a few banks offer this type of service, and banks typically give a relatively high annual interest rate on purchasing for this type of driver. Usually, in the bank, you need to show a certificate of income or your social security number, after which I check your history. They can present you a rate at which they will make a loan for you.
  2. Credit unions. Unlike banks, unions usually have lower fees and more flexible terms for you to apply for a loan with a small rate score. Unions are known for providing customer service better than regular banks, while traditional banks have stricter rules for deciding whether to give you a loan.
  3. Online lenders. Online lending is known for the fact that you can issue them without leaving your home in 10 minutes. By giving specific information, you can receive funds in your bank account or immediately from the dealer of your vehicle. Fraudsters often hide under the guise of such institutions, so you need to check the online institution more carefully.
  4. Brand dealerships. If you decide to buy a vehicle from a specific dealer, you should check whether this dealer has lending for purchasing a vehicle. The advantage of such loans is that you work directly with the seller of your vehicle.

Increase Your Chances of Getting Approved

Some specific actions will help you increase your chances of getting a loan. In particular, they include the following steps.

Depends on others

Find a cosigner. Having a cosigner will increase your chances of getting a loan because the institution that will give you a loan will consider that not only submitting documents is responsible for the fulfillment of the loan.

Depends on you

  • Consider buying a vehicle for cash. If you buy for cash, you can achieve such advantages as reducing the cost of a vehicle or avoiding additional fees for transferring bank payments.
  • Buy from a private seller, not a dealer. Private sellers, unlike dealers, often have better conditions, such as a lower price. Either their private vehicle is in nice shape, or they will provide you with a more transparent history of its previous use.
  • Use personal lending. If you take out a personal loan, you can count on more favorable conditions explicitly calculated for your history.

Auto Loans For Bad Credit Tips

The following tips will help you to take out a vehicle loan.

  • If you take out a personal loan, you can count on more favorable conditions explicitly calculated for your history.
  • Understand the terms and conditions of some institutions before making inquiries. A default is terrible for your history. Therefore, before making a request, ensure that the institution will give lending for your rating.
  • Put down the down payment. You will be refused a loan if you do not pay it on time.

Compare Lenders

To the usual conditions such as the interest rate, to choose the great option for you, you need to pay attention to the following conditions of the company:

  • permissible maximum age of the vehicle
  • vehicle mileage
  • minimum lending amount
  • maximum lending amount
  • Does the company operate in your state?
  • Restrictions on the minimum annual income.

Avoid A Hard Credit Check Until You Need One

Evaluation of credit history is an important point in the process of making a decision on granting a loan. Most rejections occur precisely because the borrower’s credit history is damaged. To avoid a hard check, you must first see for yourself what the state of your credit history is.

Credit bureaus store information about all the loans you received and, most importantly, the timeliness of their repayment. Information is supplied to them by banks, credit unions, insurance and leasing companies, etc. Request information to understand your situation.

Difference Between Interest Rates And APR

The interest rate shows you only the annual cost of the lending for the borrower and is expressed as a percentage.

The APR is the annual cost of lending to the borrower, including all possible fees. Like the interest rate, the annual interest rate is expressed as a percentage. However, unlike the interest rate, it includes other potential expenses such as insurance, closing costs, monthly payment fees, and loan origination fees.

Improve Your Credit Score

Here are some tips to help you increase your rating on your next vehicle purchase.

  • The fewer requests, the more chances for one approval of one request.
  • Make a purchase. With this, you will reap the presence of activity and the availability of working capital.
  • Paying your existing loans on time will show your responsibility.
  • Keep your credit utilization small. 
  • It’s good to keep your loan utilization at or below 30%.

Now you are familiar with the best bad credit auto loans in 2022. Be attentive to all the pros and cons to get the best offer possible! Use our tips on improving your credit score, avoiding a hard credit check, and others to get credit with the best conditions.


  • Can I get an auto with a 500 credit score?

You can get a loan with such a rating because some companies have no restrictions on the buyer’s rating.

  • What credit score is too low for a car loan?

There is no such limit because some organizations work without restrictions on the rating, but keep in mind that the lower the rating, the higher the interest rate will be.

  • What is the most accessible car to buy with bad credit?

It is better to choose a budget vehicle with high security. Such vehicles have lower rates of involvement in accidents and regular breakdowns, so creditors will be more confident in paying the debt.

  • What car company is easiest to get financing?

Capital One Auto Refinance is among the easiest to get financing from.