The Best Car Loans for Bad Credit in February 2025

Leland Terry
Published Jul 29, 2026


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.

-

Get the latest on auto loan relief and other tips by subscribing to our weekly newsletter here!

Related Articles

The 2026 Auto Loan Bubble: What It Means for You...

If you have noticed an uptick in tow trucks late at night, you are not alone. According to MotorBiscuit, the American auto loan market is facing severe pressure, triggering a sharp rise in vehicle repossessions.  ...

Paying Cash vs. Financing a Car in Retirement: What’s Actually Smarter?...

Deciding how to buy your next car in retirement is exciting but also confusing. While wiping out a monthly payment sounds liberating, pulling a large sum of cash upfront isn't always the safest...

Your Guide to Claiming Your Share of State Farm’s $5 Billion Payout...

State Farm is returning $5 billion to eligible drivers across the country through a historic one-time cash dividend. Because State Farm operates as a mutual insurance company, strong underwriting pe...

5 Costly Mistakes to Avoid When Financing Your Next Car...

Buying a new car is an exciting milestone, but the financing process can quickly become overwhelming. When discussing auto loans, buyers often focus solely on getting the lowest Equated Monthly Installment (EMI). ...

Guide to Auto Refinancing for Excellent Credit (August 2026)...

Refinancing an auto loan can help lower your monthly payments, reduce your interest rate, or adjust your payoff timeline. Having excellent credit puts you in the best position to secure top-tier rates and fav...

When Will Car Interest Rates Finally Drop?...

If you are hoping to get a lower interest rate on a car loan, you will likely have to wait a while. High borrowing rates and rising vehicle prices are keeping car buying expensive, and financial experts do not expect much reli...