Top 5 Best Auto Loans for Bad Credit in 2023
Get approved for a car loan with bad credit. Learn about options for financing a car with less-than-perfect credit scores. Compare lenders and find the best rates and terms for your situation. Apply now and get on the road to your next car.
When looking to purchase a car, many people rely on auto loans to help finance their purchase. However, with so many banks and lenders offering auto loans, it can be difficult to know where to start. We'll take a closer look at some of the top brands offering car loans and compare their offers in terms of interest rates, terms, and amounts.
OpenRoad Lending: Best for Auto Purchase
OpenRoad Lending is a brand that specializes in auto loans. They offer loans starting at an APR of 2.79% and terms ranging from 12 to 72 months. These loans are best suited for those looking to purchase a car, with loan amounts ranging from $7,500 to $80,000.
Capital One: Best for Overall Car Purchase
Capital One is a well-known bank that offers a range of financial products, including auto loans. Their auto loans start at an APR of 5.79% and have terms ranging from 36 to 72 months. Unlike OpenRoad Lending, Capital One's loans are best suited for those looking to finance the overall cost of their car purchase, with loan amounts starting at $4,000.
Carvana: Best for Online Car Buying
Carvana is an online marketplace for buying and selling cars, and they also offer financing options for their purchases. Their auto loans start at an APR of 6.85% and have terms ranging from 36 to 84 months. Carvana is best suited for those who prefer the convenience of online car buying, though their loan amounts are not specified.
PenFed Credit Union: Best for Loan Bonuses
PenFed Credit Union is a non-profit organization that offers a range of financial services, including auto loans. Their APR starts at 5.39% and they offer a $200 bonus with your auto loan, along with up to 125% financing. Their loans are best suited for those looking to finance a car purchase up to $150,000.
CarMax: Best for Online Purchase and Financing
CarMax is another online marketplace for buying and selling cars, and they offer financing options for their purchases. Their loans have an estimated APR range of 2.95% to 26% and they do not have a minimum credit score requirement. CarMax is best suited for those looking to purchase and finance a car online, with loan amounts ranging from $500 to $100,000.
Comparing the Offers
When comparing these brands, it's clear that OpenRoad Lending has the lowest starting APR and offers the highest loan amounts, making them a good choice for those looking to purchase a car. Capital One is a good option for those looking to finance the overall cost of their car purchase, while Carvana is best for those who prefer the convenience of online car buying. PenFed Credit Union offers loan bonuses for those who qualify, and CarMax is a good choice for those looking to purchase and finance a car online.
While having bad credit can make getting a car loan more difficult, there are still options available. By doing research and comparing lenders, individuals with less-than-perfect credit scores can find a car loan that works for them. It's important to keep in mind that interest rates and terms may be less favorable for those with bad credit, but by making timely payments, borrowers can improve their credit score over time. With the right approach, anyone can get behind the wheel of the car they need, regardless of their credit history.