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 January 12, 2024
| Lender | Starting APR | Loan terms | Loan amounts | Best for… |
|---|---|---|---|---|
 | 7.90% | Not disclosed | Not disclosed | Auto refinancing |
 | 6.85% | 36 to 78 months | Starting at $1,000 | Online car buying |
 | 7.90% | Not disclosed | Not disclosed | Borrowers with no credit |
 | 6.49% | 36 to 72 months | Starting at $4,000 | 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 Extra verification documents needed if you're self employed |
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.
You can refinance a car loan with OpenRoad, but your car must 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 |
|---|---|
Can get preapproved or prequalified online Auto Navigation tool can help you stay within your budget as you shop for a new car Co-applicants allowed | Must purchase from a participating dealership Does not finance private party sales No lease buyouts |
Capital One doesn’t disclose its credit score minimum, but internal LendingTree data shows it may approve you even if you have less-than-perfect credit. It offers preapproved car loans that you can use at one of 12,000 participating dealerships.
The bank’s Auto Navigation tool is also handy. To use it, first you must prequalify and download the Auto Navigation app. Then, you can use the app to shop for a new or used car. As you shop, the app will show you custom estimated payments based on the information you entered during prequalification.
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.
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