Since each lender has its own requirements, there’s no industry standard minimum credit score for a car loan. To qualify for APRs under 10%, however, you’ll want to have a credit score of at least 601 for a new car and 661 for a used car.
Written by Amanda Push | Edited by Katie Lowery | Updated August 31, 2023
| Lender | Starting APR | Loan terms | Loan amounts | Best for… |
|---|---|---|---|---|
 | 4.29% | 36-84 months | $7,500-$100,000 | Auto refinancing |
 | 7.90% | 36 to 78 months | Starting at $1,000 | Online car buying |
 | 7.90% | Up to 72 months | Not specified | Borrowers with no credit |
 | 11.00% | 36-84 months | Not specified | Preapprovals |
Read more about how we chose our picks for best car loans with bad credit.
| Pros | Cons |
|---|---|
Competitive refinancing rates No application fees Option to apply with co-borrower | Only offers refinancing May need to fax some of your loan paperwork Loans not available to self-employed applicants |
OpenRoad Lending specializes in auto refinancing and was one of the most popular refi lenders for bad credit on the LendingTree platform in the first quarter of 2023. This lending platform works with borrowers who have a gross monthly income of at least $1,500.
To refinance a car loan with OpenRoad, your current loan must be between $7,500 and $100,000. As for your ride, it’ll need to have fewer than 140,000 miles on it and be less than eight years old.
| Pros | Cons |
|---|---|
Process is completely online Option to apply with cosigner Offers autopay discount | Down payment required Auto loan can only be used on Carvana platform History of legal troubles |
Carvana was the most popular lender on the LendingTree car loan marketplace in the first quarter of 2023. Unfortunately, you can’t use a Carvana auto loan for just any car — it can only be used on the e-commerce platform. But if you’re in the market for a used vehicle and credit is a concern, Carvana considers all types of credit profiles and also allows car loan cosigners.
Unfortunately, in the past several years, Carvana has made headlines for its legal troubles, with some states fining the company and even suspending its license.
| Pros | Cons |
|---|---|
Offers financing to borrowers with no credit Can reserve a car for up to seven days Reports to all three major credit bureaus | Borrowing limits aren’t specified Doesn’t allow you to negotiate on car prices No at-home delivery options |
Even if you have little or no credit history, DriveTime still offers financing options that may meet your needs. Plus, DriveTime reports to all three major credit bureaus, which can help build your credit history and improve your credit score as long as you’re making on-time payments.
On the other hand, DriveTime offers no-haggle pricing, so you can’t negotiate the price tag on the car you want to purchase. While this may be good news for car buyers who dislike the negotiation process, you may end up paying a bit more than you would at a traditional dealership.
| Pros | Cons |
|---|---|
Offers longest repayment terms on our list Provides loans to consumers with past bankruptcies and repossessions Most auto loans don’t require down payment | Not available in all 50 states Doesn’t specify minimum or maximum loan amounts Must be currently employed to qualify |
New Roads offers preapproved car loans, a firm offer you can take to a dealer of your choice. This lender also considers borrowers with bad or no credit, as well as those with past bankruptcies, repossessions, charge-offs, late payments and tax liens. If you want to repay your loan before the term is up, New Roads doesn’t charge a prepayment penalty, a fee some lenders charge if you pay off your loan early.
Unfortunately, this lender offers loans in only 30 states — see the full list here.
Since each lender has its own requirements, there’s no industry standard minimum credit score for a car loan. To qualify for APRs under 10%, however, you’ll want to have a credit score of at least 601 for a new car and 661 for a used car.
Just as there are different types of auto loans, there are also different types of auto lenders to choose from:
When comparing auto loan offers, it’s important to pay special attention to the interest rates, monthly payments, fees, terms and amounts. These details will determine how much you’ll spend over the life of the loan. In addition, you should consider other details like down payment requirements and any prepayment penalties when comparing loans.