The Best Auto Loans for Bad Credit in 2024

Carvana is designed for drivers seeking to buy a used car with a loan. It offers over 2,500 used vehicle options, flexible payment options, and the option to apply with a co-signer, making it easier for you to qualify for a loan with bad credit.

Easy Qualification Process

If you’re having a hard time qualifying for an auto loan, Carvana might be a good option for you. Carvana does not have a credit score minimum for its applicants and only runs a soft credit check, which means its qualification process will not affect your credit score in any way. Additionally, you can include a co-signer to your policy to you get better rates and higher chances of approval.

Large Selection of Vehicles

With over 25,000 used vehicles, you’ll have a large selection of options to choose from. Carvana allows you to filter your car types with the following options:

• Vehicle cost
• Make & model
• Body type (SUV, sedan, truck, etc.)
• Years and mileage
• Fuel type (gas, hybrid, electric, etc.)
• Miles per gallon

And more!

Seamless Digital Experience

Carvana’s digital interface is intuitive and easy to use. In minutes, you can customize your loans and vehicle options by vehicle type, loan terms, costs, and APR. If you’re having any issues searching for a loan or vehicle, Carvana’s customer service representatives are available Monday through Sunday, 8 a.m. to 9 p.m. ET to guide you through the process.

Ally, a subsidiary of Ally Financial Inc., offers two types of auto loans to support drivers with diverse circumstances: refinancing and lease buyouts. Its auto refinancing option may be suitable if you are unhappy with your current loan amount, term, monthly payment or interest rate. If you lease your car currently and wish to buy it, we suggest you look into Ally’s lease buyout loans.

Loan Options

Customers who borrow and refinance with Ally Auto save an average of $129 a month and make up a total interest savings amount of $2,526. Ally offers both auto refinancing and lease buyout loan options, which allow you to prequalify in a matter of minutes. The financial process for both refinancing and lease buyout loans can take as little as a few days up to a few weeks. Here’s some other information about both loan types:

• Loan terms of 12 to 84 months
• Loan amounts from $1,000 to $300,000
• No Social Security number required for initial application
• Soft credit pull only for prequalification, which won’t affect your credit score
• Allows co-applicants

Advantageous Add-Ons

In addition to Ally’s vehicle financing services, you can opt for additional coverages to protect your pocketbook. Explore a few of these coverages below:

• Guaranteed asset protection (GAP) insurance: Ally’s GAP insurance is available for both used and new cars and protects you if an accident totals your car. Specifically, Ally’s gap insurance benefits cover the remaining net outstanding balance on your financial agreement when the value of your car is less than what you owe.
• Extended vehicle coverage: Ally offers three options for extended vehicle coverage, varying by level of coverage. Major Guard is the most comprehensive package for gasoline, diesel, or fuel-efficient hybrid vehicles. Essential Guard is the fundamental package that covers essential features like transmission and braking. The third option is Major Guard EV, which covers electric propulsion vehicles and plug-in hybrids.
• SmartLease Protect: Ally offers a coverage plan for those who lease vehicles to pay for excess mileage and wear-and-tear expenses. This protection plan covers exterior surface damage, tires, wheels, and glass, among other vehicle parts. With SmartLease Protect, Ally waives excess mileage charges of up to $400 and excess wear charges from $3,750 to $7,500, depending on your annual mileage.

Business Loans

Not only does Ally offer personal loans, but it also offers a variety of business loan plans to fit your needs.² Here’s a brief explanation of each plan:

• Specialty vehicle: Modify or up-lift trucks, vans and other commercial vehicles by adding a crane, mobility lift device or towing equipment.
• Heavy duty truck: Finance a new or used Class 8 truck up to six years old with 700,000 miles or fewer.
• Line of credit: Purchase or lease commercial vehicles, including both passenger cars and light to medium-duty trucks.
• Municipal vehicles: Finance your municipality-owned vehicle monthly or annually without paying disposal fees or security deposits.

Based in Massachusetts, the Digital Federal Credit Union (DCU) provides both consumer and business banking and lending services. With DCU, you can choose a plan from its long list of loan options depending on your situation and vehicle.

Available Loans

Digital Federal Credit Union offers both refinancing loans and purchase loans for different kinds of vehicles, including loans for RVs and motorcycles. Learn more about each type below:

Membership Benefits

To purchase an auto loan from DCU, you must be a basic member. However, there are two higher levels of membership that come with more perks:

Calculator Tool

DCU’s website has a helpful calculator tool that uses your financing information ― your vehicle’s purchase price, down payment and more ― to predict the following:

• Your loan payment
• How much you can afford to borrow
• Whether you should take a rebate or low-cost financing
• Whether you should pay off your vehicle loan early
• Whether you should accelerate your auto payments
• Whether you should refinance your vehicle loan

As a loan aggregator, we found that LendingTree offers the lowest interest rates for auto loans, especially when it comes to those with poor credit. With LendingTree, you’ll be able to compare a variety of loan options from over 300 lenders, with interest rates as low as 5.69 percent for those with bad credit (scores of 550 and lower).³

Easy Online Loan Application

We love how fast customers receive loan offers from LendingTree by filling out one form, rather than multiple forms from different lenders. The form takes about five minutes to complete. First, you’ll identify your preferred loan term. Then, you’ll provide basic information about your vehicle and current loan, such as your:

• Vehicle make and model
• Mileage
• Current payoff amount
• Estimated credit score

Once you fill out this form, LendingTree will match you with up to five auto lenders with real quotes for you to compare.

Affordable Loans

Shop LendingTree’s extensive collection of low-cost purchase loans and refinancing loans. We’ve included the essential details about each type of loan below:

High Loan Amounts

LendingTree’s abundance of auto lenders provides a number of options for the amount you can borrow. Depending on your circumstances, you may be able to borrow up to $4 million or a maximum loan-to-value (LTV) ratio of 125 percent. LTV refers to your loan’s total dollar value divided by the cash value of your car.⁴ So, a maximum LTV of 125 percent would give you up to 25 percent more than your car’s value if you total it and need to buy a new vehicle.

LendingTree’s high LTV ratios are helpful since the value of your car depreciates over time. And, since there are often borrowing limits for those without strong credit histories, we value LendingTree’s range of amounts.

Typically, interest rates for used cars are higher than those for new cars, which means if you have substandard credit, you are at risk of paying exorbitant rates for your auto loan. MyAutoloan strives to match customers with affordable loans, regardless of their credit histories. Catering to customers with vehicles up to 10 years old and with credit scores as low as 575, myAutoloan uses your information to identify four loan offers for you to compare.

Diverse Loan Options

Like many other lenders and aggregators, myAutoloan offers a variety of auto loan types to fit the different needs of customers. Your exact loan amount and term will vary depending on your provider, along with your credit score and income. Here’s a breakdown of the starting interest rates and typical borrowing amounts for each loan type:

Use our auto loan calculator to estimate your monthly payments based on your loan term and interest rate.

Flexible Terms and Amounts

MyAutoloan has lenders that offer many different payment term lengths ranging from 24 to 84 months, so you can choose the amount of time that works best for you. A credit score is a factor that can increase your loan’s interest rate and APRs for used cars are already higher than those for new cars.⁶ So, we appreciate myAutoloan’s range of lenders that offer extended terms for customers to pay back their loans.

Additionally, it’s important to note that myAutoloan requires you to borrow at least $8,000 for lease buyouts and purchase and private party loans. However, there is no set amount of money for a maximum borrowing amount. Take advantage of myAutoloan’s interest rate estimator tool and payment calculator to get the most realistic idea of how much you could save.

High Customer Satisfaction

As of June 2024, myAutoloan has 917 customer reviews on Trustpilot, many of which applaud the ease of the loan search and application with myAutoloan. The company has 3.8 out of five stars, which is strong compared to competitors. Many five- and four-star reviews note that myAutoloan representatives are readily available to answer questions and review loan options with customers. Customers also report satisfaction surrounding the quick online exchange of documents, plus fast approval times.
On top of that, myAutoloan holds a long-standing BBB accreditation since 2003, with an A+ rating. We also value its customer complaint response rate of 100 percent and its overall responsiveness to customer reviews.