Best Car Loans For Bad Credit in 2022

Getting a car loan is already a big task. Add in a complicated credit history and your chances of getting approved go way down, that is…if you are working with a company who doesn’t offer car loans for bad credit.

Just because your credit score is low, doesn’t mean you can’t have the car of your dreams. There are many lenders out there who specialize in handing out car loans for bad credit. You might pay a bit more in interest, but it’s better than getting no car loan at all.

Here are what we consider the best car loans for bad credit:

1. Auto Credit Express

Auto Credit Express: The Best Car Loans For Bad Credit
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As stated on their website, Auto Credit Express offers car loans for bad credit and good credit.

In order to acquire a car loan from Auto Credit Express, you must make at least $1500 per month as your income and provide a pay stub to serve as proof.

You will also be asked for proof of long-term employment, a utility bill, a phone bill (to show you have a working phone) and 6-8 personal references.

It might seem like a lot, but getting approved for a subprime loan (another name for a bad credit loan) is tricky when you don’t have any proof of credit (or a low credit score).

Auto Credit Express offers a ton of helpful tools on their website including a “car loan estimator” tool and a payment calculator.

In the estimator, you can input your credit score, monthly income, monthly expenses and then end with the estimated cost of your car loan. It’s pretty handy and gives Auto Credit Express big points for ease-of-use and transparency.

While Auto Credit Express doesn’t actually “provide” the loan, they do the work of connecting people with bad credit to car dealerships and lenders who will then process the request and transfer the money. Think of them as your personal recommender for getting car loans for bad credit.

2. The Best Car Loans For Bad Credit
Best Car Loans For Bad Credit In 2022 11 has been in the car loaning business since 1994. They specialize in connecting people with bad credit and to dealerships and lenders who offer subprime loans.

The sign up process for is super easy. All you need to do is fill out their online form and someone will get back to you with financing options that fit your credit history.

Like Auto Credit Express, they also offer a payment calculator and loan estimator.

What we really like about’s sign up process is how quick it is. Everything is done online and as long as you have all of your information ready, including your credit score, your application will be processed in minutes.

If you are searching for a company that offers car loans for bad credit, consider Their process is fast and they do a lot of work behind the scenes (they even set up your appointment at the dealership). So all you really need to do is go to the dealership, choose your car, sign on the dotted line and drive.

3. MyAutoLoan

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MyAutoLoan is all about options! When you submit their application for a bad credit car loan they will offer you four different quotes, leaving the final decision in your hands.

MyAutoLoan offers both motorcycle and car loans and can get you set up with either a new or used vehicle with their partners.

After you have been approved for one of their car loans for bad credit, you might want to take advantage of their affordable car insurance options.

MyAutoLoan offers resources and options for every step of your car buying journey. They even offer vehicle history reports, manufacturer recall notices and new/used car values.

Their website is not the most user-friendly, but their resources and guides are really helpful when it comes to deciding on a new car.

If you are looking for a car loan company with lots of options and provides lots of helpful advice and guides on buying a new car, look into MyAutoLoan. It’s one of the best sources for car loans for bad credit.

4. CarsDirect

Carsdirect: The Best Car Loans For Bad Credit
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CarsDirect offers car loans for bad credit, good credit and everything in between!

Their website is modern, sleek and easy to use. They really lay out everything you need to know to get approved for a bad credit car loan.

Their 3-step process starts with their shopping guides where they provide the best deals for cars in your area, comparison charts, buying guides, expert reviews and more.

Once you have selected your car, CarsDirect will connect you with the dealership, your bad credit car loan will be processed and you can drive away in your new car!

They accept people with a credit scores under 640, past bankruptcies and even people with no credit history at all.

What we really like about Cars Direct is how complete the process is. They not only match you up with a dealership that can provide a bad credit car loan, but they also provide you with all the information you need to buy your desired car at a good price.

5. Carvana

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Carvana is truly a one-stop-shop for car purchasing and financing. Their website is incredibly user friendly with an attractive layout and helpful tools, making the process fast and easy.

Like Cars Direct, Carvana features an online marketplace of their certified cars. They state that they wouldn’t sell a car that they wouldn’t also sell to their own family, and they really do mean it.

Carvana gives you the option to either pay for your car with one of their car loans for bad credit or your own bank account.

During the purchasing process, you can choose to have your car delivered or pick it up from the dealership. This is a nice option to have for those who aren’t able to go to the dealership in person.

If you aren’t totally happy with your car after 7 days, Carvana will give you a full refund, no questions asked. All of their certified cars are also backed by a 100 day warranty.

To acquire one of their car loans for bad credit, you must make at least $4000 per year and have no active bankruptcies.

If you are looking for a car loan company that really walks you through the whole process, then consider Carvana.

6. Capital One

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Did you know that in addition to credit cards, Capital One also offers car loans for bad credit?

Capital One’s special “Auto Navigator will walk you through the process of choosing your car, building your financing plan (down payment amount, term length etc…) and finally, getting approved to buy a new car.

They offer both new and used cars for sale in their marketplace and display the actual monthly payment based on your unique credit score. This makes their car buying process easy and very transparent!

Their quick and easy pre-qualification process also means that you won’t be spending time at the dealership, meeting with the dealer and signing papers. You are already approved, so all you need to do is show them your Capital One financial pass and you’re good to go.

The only thing to note about Capital One is that you need a credit score of at least 500 to apply. So anyone with a score lower than that is out of luck.

If you are on the search for car loans for bad credit and aren’t sure who to go with, be sure to check out Capital One.

7. AutoPay

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Similar to the other companies we’ve mentioned in this list, AutoPay does not provide the loan, but instead connects you to dealerships and lenders who offer car loans for bad credit.

AutoPay offers car loans between the price ranges of $2500 and $100,000, so there’s lots of options based on how much money you want to spend on your new car,

One thing that might cause you to choose AutoPay over other companies that offer car loans for bad credit is that they allow a co-signer on your loan application form. Using a co-signer means that you will have a higher chance of getting accepted by the lender (and get a better deal).

If you are also looking for car insurance, AutoPay can provide you with some options. So instead of using a separate insurance company, you can do everything at one time with AutoPay.

AutoPay is a great option for anyone looking to get everything taken care of in one spot…marketplace, financing and insurance service can all be found on

8. New Roads

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New Roads makes it very clear on their website that they specialize in car loans for bad credit specifically.

They offer loans on used and new cars as well as lease buyout loans and refinance loans. Unlike other companies mentioned on this list, New Roads is very lenient when it comes to bankruptcies and bad credit.

They will consider your application even if your house has been repossessed. This is good news for anyone struggling with bad credit and getting turned away from lenders.

Like AutoPay, New Roads allows their clients to apply with a co-signer. This tends to raise your chance of getting approved and also getting a good interest rate.

One unique attribute of New Roads is that they don’t require a down payment. So if you are currently short on cash, New Roads might be the answer for you!

How to prepare for your bad credit car loan application

1. Check your credit score

Before you put in your application for your bad credit car loan, you’ll need to acquire a copy of your credit report from each of the bureaus.

This can be done for free at Click here to read our step-by-step instructions on how pull your free credit report in minutes!

Knowing your credit score before you embark on your journey to apply for a bad credit car loan will give you the chance to research and ask around to see what interest rate other people with bad credit are getting before you officially sign on.

2. Decide on how much you want to spend on your car

Car loans for bad credit can be pricey. You may not need to borrow as much money as you think so before you go out and apply for your loan, draft out how much money you will be spending on your car over the next few years. These expenses could include the actual cost of the car, fuel and repairs. Once you have your budget, research and compare the price of car loans for bad credit and choose the one that makes the most sense for you financially.

3. Save up for the down payment

Most lenders who give out car loans for bad credit require some sort of down payment. Before you apply for your car loan, make sure you have enough money saved up to satisfy their down payment requirements.

Takeaways: Best Car Loans For Bad Credit in 2022

You may have thought that your chances of getting a car loan with a low credit score were zero, but as you can see, there are many auto loan companies out there who are willing to give you a shot.

Getting a car loan with bad credit is entirely possible, however; it’s important to note that you won’t be getting the same interest rates as someone with a good or excellent score.

People with scores of 500 and below will tend to be given a 12% interest rate on their car loans whereas those with 800 and above will be given around 2.5%.

If you are hoping for a better rate, there is still hope. Use a co-signer on your loan application or follow our recommended steps for raising your credit score. You will be back on track in no time.

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