Bad credit doesn’t have to mean putting your car search on hold. These days, lots of lenders and dealerships are set up to help people with less-than-perfect credit get approved for an auto loan—sometimes faster than you’d think.
In this guide, you’ll find the best places to get a car loan with bad credit, including online networks that connect you with willing dealers and dealerships that work directly with buyers in your situation. You’ll also get tips to boost your approval odds and avoid common mistakes along the way.
If you’re ready to get back on the road, here’s where to start.
Best Lending Networks for Bad Credit Auto Loans
If you’re struggling to find a dealership that will approve your loan, these lending networks can help. They connect you with car dealers that specialize in bad credit financing, making it easier to secure a loan even if your credit score is low.
1. Auto Credit Express
- Credit score requirement: 400
- Loan term: Up to 72 months
- Open to applicants with poor or non-existent credit, including those with a history of bankruptcy
- Accredited with an A+ rating from the Better Business Bureau
2. CarsDirect
- Credit score requirement: None
- Loan term: Up to 72 months
- Establishes connections with dealers within a 24-hour timeframe
- Accredited with an A+ rating from the Better Business Bureau
3. car.Loan
- Credit score requirement: None
- Loan term: Up to 72 months
- Accepts all credit types. Options to lease, buy, or rent.
- Offers same-day approval
4. myAutoLoan
- Credit score requirement: 575
- Loan term: 24 to 84 months
- Provides up to four loan offers for customers to compare
- Accredited with an A+ rating from the Better Business Bureau
Car Dealerships That Offer Bad Credit Financing
Prefer to work directly with a dealership? These car dealers offer in-house financing and bad credit-friendly loan options, giving you a more straightforward path to car ownership.
5. DriveTime
DriveTime stands out for making car buying less stressful for people with bad credit.
6. CarMax
CarMax is a major used-car dealership with a huge selection and a reputation for making car buying easy—even if your credit isn’t great.
7. Carvana
Carvana takes car shopping online, making it easy to browse, finance, and buy a car from home—even with bad credit.
Smart Tips for Getting a Car Loan With Bad Credit
Getting a car loan with bad credit can feel overwhelming, but it’s absolutely possible if you take the right steps. Here’s how to improve your odds and avoid common pitfalls.
Check and Clean Up Your Credit Report
Start by grabbing a copy of your credit report from each major credit bureau. Go through it line by line and look for mistakes—like debts that should be marked as paid or old accounts still showing as open. Fixing these errors can give your credit score a quick boost.
If you have time before buying, focus on improving your credit, paying off overdue debts, and making all payments on time. Even a few months of steady payments can make a difference.
Know Your Budget Before You Shop
Figure out what you can realistically afford before you set foot in a dealership. Calculate not just the monthly payment, but the full cost of owning a car—insurance, gas, maintenance, and fees. Don’t stretch for a pricier car just because you’re approved for a higher loan amount. A payment that’s too high can strain your budget and risk hurting your credit score even more if you fall behind.
Save Up for a Down Payment
Putting money down helps in a big way. It shrinks your loan amount, lowers your payments, and shows lenders you’re serious. Even a small down payment can help you qualify for better terms, and it can keep you from ending up “upside down”—owing more than the car is worth.
Consider a Cosigner—But Weigh the Risks
If you’re struggling to get approved, a cosigner with stronger credit can help you land a better deal. Just remember, they’re on the hook if you can’t make payments, so make sure you’re both clear on the responsibility before moving forward.
Final Thoughts
Bad credit doesn’t have to keep you off the road. Today, plenty of car dealerships and lending networks are ready to work with buyers in your situation. The key is to know your options, compare offers, and stick to a budget that works for you.
Focus on cleaning up your credit report, save what you can for a down payment, and don’t rush into a loan you can’t afford. With a little preparation, you can secure financing and drive away with confidence.
Ready to get started? Explore the lenders and dealerships listed above, and take the first step toward your next car.
Frequently Asked Questions
Can I get a car loan with bad credit after bankruptcy or repossession?
Yes, it’s possible to get a car loan even if you’ve been through bankruptcy or had a vehicle repossessed. Some lenders and dealerships specialize in working with buyers who have these credit challenges. You may need to show proof of steady income and might face higher interest rates, but approval is still possible. It helps to have a down payment and to be flexible about the cars you’re willing to consider.
Will a bad credit auto loan help improve my credit score?
A bad credit auto loan can help your credit score if you make all your payments on time. Most lenders report your payment history to the major credit bureaus, so steady, on-time payments can give your credit a boost over time. Missing payments, however, will hurt your score even more, so only take on a loan you can comfortably afford.
How fast can I get approved and drive away with a bad credit car loan?
Some lenders and dealerships can approve your application within minutes or hours, and you may be able to drive away the same day. In other cases, especially with online lenders, the process might take a day or two. Having your documents ready—like proof of income, insurance, and ID—can speed things up. If you’re flexible and prepared, you could be on the road quickly, even with bad credit.
How do buy-here, pay-here dealerships differ from traditional lenders for bad credit loans?
Buy-here, pay-here dealerships finance your car in-house, so approval is easier with bad credit. Expect higher rates and fewer cars to choose from. Traditional lenders offer lower rates and more options, but approvals are tougher if your credit is low.
How can I tell if an auto loan offer is fair given my credit situation?
Compare your rate to the average for your credit score. Check for hidden fees and look at the total loan cost—not just the monthly payment. If everything matches up with what’s typical for your credit, the offer is likely fair.
