Getting an Auto Loan With Bad Credit

This is why bad credit is no longer preventing people from getting the SUV, truck or car of their dreams.

It’s a common myth that you can’t finance a new or used car if you have bad credit. The truth is that anyone can apply for a car loan regardless of their credit history. People with poor credit have more options than ever before to finance their dream car. They will likely be surprised at how low the monthly payments can be.

Below, you will find some of the best lenders that offer auto loans to people with poor credit.

Lending Tree

This lender can give you reasonable loan at interest rates of 3.99% to finance your dream car. Lending Tree has a good reputation for keeping interest rates low and not gouging their customers.

No matter what your credit rating is, Lending Tree will still help you find a financing option. Start by checking their website and search for the loan that matches your capacity to pay. When you apply, you will be provided by a list where you can compare up to five different lenders that offer loans. Then you can select the one that is suitable for your credit score, budget and terms.

Advantages:

Only 3.99% interest rate
Lets you compare up to 5 different loan offers in a single search
No fees to apply for financing
Gives you access to national lender database for more loan options
Loans and lenders are available for all credit scores and types

Disadvantages:

Another application process is needed to view more than five loan offers

Auto Credit Express

Auto Credit Express has a motto of “Hassle-Free Auto Financing”. It enables fast and easy auto financing for everybody no matter what their credit score is. With their help, you can find the best loan to match your current financial situation. These loans can be used for any dealership to buy a new or used car. They are not like other lenders who will reject your application because of bankruptcy status or a credit score below 625.

One qualification to note is that if your credit score is below 625 you must have at least $1,500 gross monthly earnings to qualify for a loan.

Advantages:

They offer several options
They can finance new or used cars
Will not reject an application for older vehicle models
They can serve the traditional dealers and special finance dealership

Disadvantages:

Getting a loan to buy from a private seller is not allowed

MyAutoLoan.com

When you have a low credit rating many lenders will deny your applications or only accept you with high interest rates and fees. Fortunately, MyAutoLoan.com will not do that to you. In as fast as 2 minutes, myautoloan.com can give you as many as four different lenders to choose from.

To qualify for their loan offers, you must have at least $1,800 in monthly income, no current bankruptcies and looking to finance a car no older than 10 years old. On the myautolaon.com website, you use an interest rate estimator tool to determine what APR to expect.

Advantages:

All you need is 2 minutes to apply for a loan
View up to 4 lenders at one search
Fast approval processing of within 24 hours
Car financing from private sellers allowed
No fees to be collected
Auto loan refinancing also available

Disadvantages:

Your personal information is shared with other lenders
The application may not be approved for an older car with high mileage

Capital One

Borrowers can apply at Capital One to finance a new or used car. Capital One offers financing to more than 12,000 car dealerships across the USA and these loans are available to anyone regardless of credit score.

Those with low credit can benefit from the pre-qualifying stage process for an auto loan. With this process, there is no need to take a hit on your credit report. This eliminates the risk of making your score even lower just for applying for a loan. The Capital One website also has an Auto Navigator tool that enables an instant comparison list for car payment amounts and interest rates.

Advantages:

As soon as the loan offer is made, customers can view potential lenders
Online financing is available

Disadvantages:

Car financing from private sellers are not allowed
Loan amount should be at least $4,000

Final Thoughts

It may be hard to find the best lenders to finance your dream car particularly for those with bad credit. The good thing is that the lenders mentioned above can be quite helpful in your quest. All you need is to allocate some time to research, read and compare their different offers.