Obtaining a car loan with bad or no credit

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Your credit rating plays a important role when trying to obtain a car loan. Credit scores range from the lowest at 300 to the best of 850. Having a credit score over 700 will most likely get you approved for your new or used vehicle and will come with a favorable annual percentage rate.


For people with a credit rating below prime, some car dealerships have programs available that can get you financed even with a less than perfect credit score, past bankruptcy, bad credit or having no credit history at all. One downside to these subprime car lenders is they will come with a higher interest rate which will increase your monthly payment and the amount you will pay in total over the life of your loan. The other con of these types of loans is that you may be required to apply a larger down payment.

Tip: When searching for a car with bad credit, it is easier to obtain car financing for a new car than a used one. Also, If you decide to buy a car now under subprime financing terms, wait about 6 months after you have financed your vehicle, then refinance the subprime car loan at more favorable terms.


For individuals with a terrible credit rating, there are car lots or dealerships that offer buy here pay here programs for used cars. We highly recommend to only use them as a last resort. These buy here pay here dealerships tend to charge a excessive amount of interest and/or like to mark the price of the car up to nearly double. This is how they are able to approve anybody for a car with no credit check. If you do use them, make sure you check the bluebook value of the vehicle before you sign any agreements or apply a down payment.

For further information on buy here pay here financing and a list of locations of local car lots that offer this type of program, please read No Credit Check - Buy Here Pay Here Lots.


List Of Lenders That Offer Car Loans With Bad Credit

Here we have listed some subprime lenders that accepts applications for used and new car loans with bad credit, no credit or a past bankruptcy.

1-800-AutoYES - Can get approved even with the most severe credit problems. Past bankruptcy or foreclosure are ok. They provide a response from a few minutes to a few hours. Apply Here

E-Loan - They have relationships with many different funding sources, so you can receive up to 4 different quotes. This will help you get the lowest interest rate and terms possible. Application process is quick and easy. Response within 24 hours.

Poor credit APR varies from 13.95% to 20.95%. Payments range from $539 to $751.

Ecarlenders.com - will put you behind the wheel in the car of your dreams. No matter what your credit rating is. They will find a lender to provide you the best financing option. Even if you have bad credit we can help.

Remember, large car dealerships that deal with credit problems have a large amount of resources to get you approved for a new or used car loan. For the best possible auto loan, contact your local dealership and explain your situation.




You may also want to read Finding a bad credit motorcycle lender.

Learn about Car Title Loans For Bad Credit

You may also want to read How Do I Stop My Car From Being Repossessed.

Learn about ATV Loans With Bad Credit.

Learn about Guaranteed Auto Loans For Bad Credit.

Disclaimer: We have a relationship with 1-800-AutoYes in their affiliate program which provides us with compensation for every customer that signs up for their program. The above information was written in good faith, but we cannot guarantee accuracy or credit approval. If you feel the information is inaccurate or have a lender you wish to add to our list, please email us at help@consumerbadcreditguide.com.