Best Car Loans for Bad Credit (September 2025)

Having bad credit can make it difficult to get approved for a car loan, or you may only qualify for loans with higher interest rates.

However, there are lenders who work specifically with people who have low credit scores or limited credit history. CNBC Select reviewed over 20 lenders to find the best options for people with bad credit.
 

What Is a Bad Credit Car Loan?

A bad credit car loan—sometimes called a subprime or second-chance loan—is designed for people who have low credit scores. Usually, a FICO score below 580 is considered poor and makes getting approved harder.

Even so, bad credit doesn’t mean you can’t get a car loan, but you will probably pay a higher interest rate and get less favorable terms. Lenders may also consider your income and debts when deciding whether to approve your loan.
 

Best Car Loans for Bad Credit

Here are some top choices for people with bad credit:

• Best for Convenience: Carvana
  • No minimum credit score required (though partner lenders may have requirements)
  • APR: 6.85% – 16.46%
  • Loan Amounts: Starting at $1,000
  • Terms: 36–72 months
  • No origination fee or prepayment penalty
  • Licensed in all 50 states
  • Carvana offers a streamlined car shopping and financing process as well as a seven-day return policy.
• Best for Borrowers With a Co-Signer: Capital One Auto Finance
  • No specific minimum credit score
  • APR: 5.50% – 5.67%
  • Loan Amounts: Starting at $4,000
  • Terms: 24–84 months
  • Nationwide availability (except for Hawaii and Alaska)
  • Allows co-signers, which can help you qualify or get better terms. You must finalize the loan in person at a participating dealer.
• Best for Used Cars: CarMax Auto Finance
  • No specific minimum credit score
  • APR: Not disclosed
  • Loan Amounts: $500–$100,000
  • Terms: 36–72 months
  • Available in most states (not Alaska, Arkansas, Hawaii, Montana, North Dakota, South Dakota, Vermont, West Virginia or Wyoming)
  • Offers a wide selection of used cars and a quick financing process.
• Best for Refinancing: Autopay
  • No specified minimum credit score
  • APR: Starting at 4.67%
  • Loan Amounts: $2,500–$100,000
  • Terms: 24–96 months
  • Available in all 50 states
  • Specializes in refinancing loans and lease buyouts. Preapproval is available with no impact on your credit score.
• Best for Low or No Down Payment: Westlake Financial
  • No specified minimum credit score
  • APR: 2.99%–29.99%
  • Loan Amounts: $5,000–$30,000
  • Terms: 48–72 months
  • Available in all 50 states
  • Offers loans with very low or no down payment, even for RVs and luxury cars.
• Best for Long Repayment Terms: iLending
  • Minimum credit score is 560
  • APR: 5.49%–19.24%
  • Loan Amounts: $5,000–$150,000
  • Terms: Up to 96 months (longer than most lenders)
  • Available in all states except Hawaii
  • Focused on refinancing, not on loans for new or used cars.

 

Tips to Improve Your Chances of Getting Approved

If you want to increase your odds of getting a car loan with bad credit, try these strategies:

• Improve your credit score: Check for errors on your credit report and make on-time payments to boost your score.
• Get a co-signer: If someone with good credit co-signs your loan, you have a better chance of getting approved.
• Increase your down payment: Putting more money down can lower your monthly payments and improve your chances of approval.

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