Bad Credit Auto Loans of 2024

Bad credit auto loans are a type of car loan designed for individuals with poor credit history. Or low credit scores, providing them with financing options to purchase a vehicle despite their less-than-ideal creditworthiness. This type of loan often comes with high interest rates, depending on your credit and other factors. If you need a car loan with bad credit, considering bad credit auto loans this year may be a good idea.

Bad Credit Auto Loans

These loans are sometimes called second-chance or subprime auto loans. In addition, most lenders do not offer auto loans for borrowers with bad credit. To find lenders who provide loans to borrowers with bad credit, you must look out for borrowers with low or no minimum credit requirements or any other requirement that shows they work with borrowers with low credit.

What are Bad Credit Auto Loans?

A credit score below the mid-600s is defined as bad credit. FICO and VantageScore are common methods used in scoring credits. Both scoring methods differ from each other. Before loan approval, most lenders consider some factors, along with the borrower’s credit score.

Factors such as job tenure, payment record, debt level, stable income, and loan size are considered in evaluating loan applications. If your credit falls into the bad or low category, you can still get a car loan if other factors are outstanding. Unfortunately, you may be restricted from some things in your loan term; a lender may approve only short-term loans.

Types of Lenders that Offer Bad Credit Auto Loans

Meanwhile, different lenders render bad-credit auto loans to borrowers whose credit does not meet the accepted credit score. If you are a borrower with bad credit, applying for an auto loan with different lenders makes more sense. Lenders’s loan criteria differ from each other; one may be willing to offer you an auto loan while the other doesn’t. Comparing lenders also gives you a better chance of selecting a lower-priced lender. Some of the types of lenders that offer bad credit auto loans are:

Banks and Credit Unions:

This lender is also known as a direct lender. It is a good place to begin as a borrower with bad credit. If you already have a bank or credit union account, you have a better chance of getting approved for a loan.

Online Loan Marketplaces:

Online loan marketplaces that work alongside other lenders are a good option for bad credit auto loans. Also, they offer convenient means of loan application to multiple lenders through a single loan application.

Online car retailers:

An example of these lenders is Carvana, which offers auto loans to borrowers with bad credit.

Auto Dealership:

These lenders provide car loans to borrowers with bad credit. In addition, this is an excellent option for borrowers with bad credit. Auto dealership lenders most often have a long-term relationship with credit unions and banks.

Best Bad Credit Auto Loans

As mentioned earlier, various lenders offer auto loans to borrowers with bad credit. While some lenders offer car loans for bad credit, below are some of the best bad credit car loans to consider.

Auto Credit Express

This is one of the best auto loans taken by car buyers who cannot qualify for a loan due to bad credit. Borrowers who cannot qualify for a traditional loan can consider getting auto loans from Auto Credit Express. This lender specializes in providing help for low-credit borrowers. They connect car buyers to auto loan lenders who allow co-borrowers or co-signers for loan applications.


Meanwhile, if you need the means to connect to car loan lenders who offer car loans to borrowers with bad credit, MyAutoloans is a good option. They offer means by which borrowers with low or bad credit to apply and qualify for an auto loan. Also, some of these lenders offer pre-qualification that has little effect on your credit score and can be easily recovered after a short period. There are no origination fees required and the application is made easily accessible online to borrowers who prefer it.


This is best for borrowers in need of a smooth-running online car shopping, buying, and financing experience. This lender offers auto loans to car buyers with bad credit. In addition, Carvana offers pre-qualification that has little effect on your credit and these effects are recoverable. They allow co-signers or co-borrowers to give borrowers with bad credit a better shot at loan approval.


If you want to apply for an auto loan for a used car, this is one of the best to consider. CarMax allows borrowers to purchase a car from a large inventory and finance cars online. Additionally, after purchase, the purchased vehicle is delivered and picked up at any CarMax location. This lender provides flexible used-car buying and selling services.