Best Auto Loan for Bad Credit: My Auto Loan

Best Auto Loan for Bad Credit: My Auto Loan

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Accepts borrowers with poor credit

Offers new, used, and refinance loans

Sources offers from multiple lenders

Higher minimum loan amount requirements

Not available in Hawaii or Alaska

Key Information

  • APR range: As low as 3.49%
  • Minimum loan amount: $8,000 for purchase, $5,000 for refinance
  • Repayment terms: 24 to 84 months
  • Recommended credit score: 575
  • Availability: 48 states (not Alaska or Hawaii)

my Auto loan is a marketplace that allows you to compare multiple offers from lenders based on your credit profile. This type of company can help you cast a wide net and get the best offer available. It offers new, used, refinance, private party, and lease buyout loans.

Speed is one of my Auto loan’s benefits. Its online form takes just a couple of minutes to fill out, and once you submit your application, it matches you with up to four lender offers. After you choose a lender, you can receive an online certificate or check within 24 hours.

Requirements in my Auto loan’s market vary by lender, but borrowers generally can have a credit score as low as 575 and still be eligible for a loan.

Why We Chose It: my Auto loan not only offers reasonable low rates, but it accepts credit scores as low as 575. Its marketplace provides the opportunity for borrowers with poor credit to shop deals from multiple lenders at once.

Best Auto Refinance Company: AutoPay

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Offers multiple refinance options

Marketplace matches you with best offer

Considers all credit profiles

Excellent credit required for the best rates

Key Information

  • APR range: As low as 1.99%
  • Minimum loan amount: $2,500
  • Repayment terms: 24 to 84 months
  • Recommended credit score: Not disclosed
  • Availability: All 50 states

AUTOPAY is a marketplace that makes it easy to shop around for the best deal. It caters to individuals who are rebuilding credit or improving their credit.

AUTOPAY offers more refinance options than many lenders. In addition to traditional auto refinancing, borrowers can choose cash-back refinancing and lease payoff refinancing.

While AUTOPAY’s rates start at 1.99%, only those with excellent credit will qualify. According to AUTOPAY, those who have average credit will receive rates as low as 5.72%.

Why We Chose It: AUTOPAY offers several different refinance options, competitive rates, and has flexible credit requirements. Borrowers can easily compare offers from different lenders on AUTOPAY’s site and choose the best deal.

Best Online Auto Loan: Lightstream

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Completely online process

0.5% discount with auto pay

No restrictions on make, model, or mileage

Offers unsecured loans to borrowers with excellent credit

Online application only

Prefers borrowers with good credit

Key Information

  • APR range: 2.49%-9.49% (as of 10/16/2020)
  • Minimum loan amount: $5,000
  • Repayment terms: 24 to 84 months
  • Recommended credit score: Not disclosed
  • Availability: All 50 states

Lightstream is the online lending arm of SunTrust Bank. It stands out for its online lending process. Borrowers can apply online, e-sign the loan agreement online, and receive funds via direct deposit as soon as the same day.

Lightstream also offers a remarkably wide range of auto loan options, including new and used dealer purchases, refinancing, lease buyouts, and classic cars. It even offers unsecured loans for those with excellent credit.

Rates from the lender start as low as 2.49%, which includes a 0.5%-point discount for autopay. The maximum APR on an auto loan is 9.49%.

The downside is that the lowest rates from Lightstream are only available to borrowers with excellent credit. That’s not unusual, but it means that this isn’t the best lender for those with a damaged credit profile. Lightstream doesn’t publish its exact credit requirements, but it generally defines excellent credit easy payday loans berkshire online as having a credit history of five or more years with various account types, an excellent payment history, a proven ability to save, and stable and sufficient income.

Why We Chose It: Lightstream offers a fully online process for its extensive list of vehicle loan options. It’s very transparent about its rates and terms, and it has few restrictions on what kind of car it will finance. It’s also strong on customer service, receiving a top score in the J.D. Power 2020 Customer Lending Satisfaction Survey. п»ї п»ї

Best Auto Loan for Fair Credit: Carvana

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No minimum credit requirement

Entirely online dealer and lender

Excellent credit borrowers get the lowest rates

Income requirement of at least $4,000 annually

Only for used vehicles

Key Information

  • APR range: Estimated as low as 3.9%
  • Minimum loan amount: None
  • Repayment terms: 12 to 72 months
  • Recommended credit score: None
  • Availability: 48 states (not Hawaii or Alaska)

Carvana is a completely online used car dealer that also provides direct financing. It makes it possible to secure financing, shop for a vehicle, and get a used vehicle delivered without leaving your house. There is no credit score minimum for its financing program, making this an attractive option for fair credit borrowers. However, you must have an income of at least $4,000 annually and no active bankruptcies.

Like most lenders, borrowers with the best credit get the most competitive rates, starting at 3.9%. You can use Carvana’s auto loan calculator to estimate the monthly payment you’ll receive based on your loan details and credit score.

Why We Chose It: For fair credit borrowers in the market for a used vehicle, Carvana provides the ability to shop online for financing and a vehicle at the same time. It has no minimum credit score requirement, providing a financing solution for those with damaged credit.

How Do Car Loans Work?

Car loans are secured loans. The loan is paid off in equal installments over a predetermined period of time. Generally, the vehicle you’re purchasing is used as collateral, which means the lender can seize the car if you default on loan repayments.

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