The Best Car Loans for Bad Credit in February 2025

Having bad credit doesn’t mean you can’t get a good deal on a car loan. Even with credit scores below 670, you've got options. 

It’s all about looking around to find the best deal. We checked out over a dozen lenders to find the best car loans out there for people with not-so-great credit.

Check out: What Credit Score Do You Need to Buy a Car?
 

Top Car Loans for Less-Than-Perfect Credit

1. Best for Online Car Buying: Carvana
 

• APR: Starts at 7.90%
• For: Used cars
• Pros: Accepts bad credit, no penalty for paying off early, prequalification available, 100% online, allows co-signers.
• Cons: Only for cars from Carvana, not in all states.

2. Best from a Big Bank: Capital One Auto Finance
 

• APR: Varies
• For: New and used cars, refinancing
• Pros: Bad credit OK, no early payoff fees, prequalification with no impact on credit, online tools for car shopping.
• Cons: Must go to participating dealers, final loan terms only at dealer.

3. Best for Used Vehicle Selection: CarMax Auto Finance
 

• APR: Not specified
• Pros: Welcomes bad credit, no penalty for paying early, prequalification without affecting credit, online application, low minimum loan amount, allows co-borrowers.
• Cons: Only for CarMax cars, not all states, fixed prices.

4. Best for Refinancing: Autopay
 

• APR: Starting at 4.67%
• Pros: Bad credit OK, no early payment penalty, prequalification option, range of loan amounts, allows co-applicants.
• Cons: Approval may take 48 hours, funding up to two weeks.

5. Best for Low or No Down Payment: Westlake Financial
 

• APR: 2.99% to 29.99%
• Pros: Various programs for different credit scores, funds many types of vehicles, online pre-qualification.
• Cons: Some fees not disclosed.

6. Best for Long Repayment Terms: iLending
 

• APR: 5.49% – 18.79%
• Pros: Low credit score and history requirements, long repayment terms, no application fee.
• Cons: Some fees undisclosed.

 

More About These Loans

 

• Carvana doesn’t specify a minimum credit score, making it accessible for various credit profiles, and it allows for co-signers.
• Capital One Auto Finance helps you shop around with its Auto Navigator tool without a hard credit check until you’re ready to apply.
• CarMax Auto Finance works with numerous finance sources to cater to many credit profiles without a specified minimum credit score.
• Autopay partners with financial institutions to provide a range of loan options, including for those with less-than-perfect credit.

Choosing the right car loan involves comparing options and considering what fits your situation best, especially if you have bad credit.

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