Get Bad Credit Auto Loans With Guaranteed Approval

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Key takeaways

You can get approved for a car loan with bad credit. Choose a lower-priced vehicle, save for a large down payment, or add a co-signer.
Prequalify or get preapproved to compare loans and negotiate better rates.
You may be able to refinance your loan at a lower interest rate if you rebuild your credit.

Bad credit will not prevent you from securing an auto loan. All it does is make it more difficult to find a lender who will work with you. You will have to pay more interest and fees than a borrower with good credit.

Lenders take on more risk when lending to consumers with scores below 600. As a result, they charge you more.

The good news is you can lower your rates and secure financing. Here’s how to get a car loan with bad credit.

Can you get a car loan with bad credit?

You can get a car loan with bad credit, but your options will be limited. Auto loans for bad credit will have high interest rates and less favorable terms. The higher rates tend to mean larger monthly payments and a more expensive loan. If you can pay your loan off quickly, you will pay less interest overall.

Start by looking for lenders specializing in car loans for people with bad credit. Plenty of lenders do not require a specific score. Many accept applicants with scores in the low 600s or less. They may require you to earn a certain amount or have been at your current job for a specific time.

Some dealerships and lenders even offer zero-down bad credit car loans. While these loans will let you finance a car without making a large upfront payment, they can be expensive. Generally, saving up for a larger down payment is a better choice.

Guaranteed approval tips for bad credit auto loans

Getting approved for a car loan when your credit is less than perfect isn’t impossible. Here are key tips that will help you secure affordable financing.

Choose a lower-priced vehicle

One of the best ways to get a car loan with bad credit is to reduce the loan amount you’re asking for. Choosing a reliable, lower-priced vehicle, especially a used model, can significantly improve your approval odds. Used car loans for bad credit are easier to qualify for than loans on brand-new cars. An added benefit is that they often come with lower monthly payments.

While your credit score will still lead to a higher rate, a smaller loan can mean less interest paid over time. Look for affordable vehicles rather than going for the latest model. Choosing a more common model can also make repairs less expensive, so you don’t have to rely on auto repair financing down the road.

Prequalify before you shop

Before you walk into a dealership, get prequalified through a lender that works with bad credit borrowers. Prequalification gives you a better sense of how much you can borrow and what interest rates to expect. Lenders only do a soft pull, so there’s no impact on your score.

Visit your current bank or credit union and research online lenders that provide low-interest car loans for bad credit. Then, prequalify with multiple lenders. Many lenders now offer car loans for bad credit with instant approval online, making it easy to compare options quickly.

Rebuild your credit after you buy

Once you’ve secured a loan and purchased your car, focus on rebuilding your credit. On-time auto loan payments will positively affect your credit score. When you have a better score, you can refinance for a lower rate.

Another strategy is to take out a credit builder loan. What is a credit builder loan? It’s a small loan the bank holds onto until you’ve paid it off. After you’ve paid it off, you receive the money and a higher credit score.

Leasing could be the answer, but what about your score?

Can you lease a car with bad credit?

How to refinance a car loan with bad credit

Refinancing can be a smart way to lower your monthly payments or interest rate. Some lenders refinance car loans for bad credit, especially if your score has improved since you took out the loan.

1. Check your credit report for errors. Getting inaccurate negative marks off your report can give your score an immediate boost.

2. Pay down outstanding debts to improve your debt-to-income ratio (DTI). Lenders prefer DTIs below 35%.

3. Reach out to your current lender. If your loan is in good standing and your score has improved, your lender may be willing to refinance.

4. Compare offers from lenders specializing in guaranteed approval auto loans for bad credit. Some lenders advertise programs to refinance car loans with bad credit, guaranteed approval, but terms vary widely.

Refinancing with bad credit can be the right choice if you struggle to make monthly payments. You can extend your loan term to get a lower monthly payment. Remember that a longer loan term almost always means paying more interest overall.

Borrowers with bad credit who refinanced their car loans through the LendingTree marketplace in 2024 received an average APR of 15.51%. To get a lower rate, you must wait until your score has improved to refinance.

Can you finance a car with no credit?

It is possible to finance a car with no credit history, but you will face hurdles. Look for lenders that offer online car loans for bad credit and no credit borrowers. These lenders will place less emphasis on your score and more on your income and ability to repay. Some lenders work specifically with first-time buyers or those with limited credit profiles.

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Can you buy a car with a credit card? Buying a car on credit and skipping the auto loan can be tempting when you have a poor score. While possible in theory, it’s usually not the best choice. Having no credit history will also make it tough.

How to get approved for a car loan with bad credit

Qualifying for a car loan with bad credit is similar to how you qualify for a personal loan with bad credit. You will need to put in a little extra effort, but you can achieve it. Here’s how to successfully position yourself to secure decent auto loan rates.

Check your credit report

Review your credit report from all three major bureaus: Equifax, Experian, and TransUnion. You can get a free copy of your report via annualcreditreport.com once a year.

Look for errors or outdated information that may drag down your score. Disputing inaccurate information can give your score a quick boost.

Also, checking your credit score is important to know what kind of loan offers you may expect. Some lenders categorize bad credit as anything below 600, while others may be more lenient.

Credit score	Average new car APR	Average used car APR
Super prime (781-850)	4.77%	7.67%
Prime (661-780)	6.40%	9.95%
Near prime (601-660)	9.59%	14.46%
Subprime (501-600)	13.08%	19.38%
Deep subprime (300-500)	15.75%	21.81%

Data from Experian’s State of the Automotive Finance Market Q4 2024

Save for a larger down payment

Although some lenders advertise bad credit car loans with no money down, these loans are more expensive. When you make a large down payment, you don’t have to borrow as much. A smaller loan reduces the lender’s risk, so you may be able to secure a lower interest rate. Even a small down payment can make a difference if you can’t save a large sum.

Consider a co-signer or co-borrower

If your credit score is too low to qualify on your own, adding a co-signer or co-borrower with good credit can help. A co-signer agrees to make payments if you default, but does not own the vehicle. A co-borrower is also a co-owner, equally responsible for repaying the loan.

Having a co-applicant provides a safety net for lenders. They are more likely to approve your loan with better rates and more favorable terms.

Shop for online lenders

Traditional banks may not offer much flexibility, but car loans for bad credit online are widely available. Look into online lenders, credit unions, and auto financing platforms. These lenders are often willing to work with borrowers with credit challenges.

Lender type	Pros	Cons	Typical approval time
Credit unions	Lower rates, community focus	Membership required	1-3 business days
Online lenders	Flexible approval criteria	Higher interest rates or fees	Same day or next day
Auto financing platforms	Compare multiple loans	Variable quality, hidden fees	1-5 business days

Once you’ve found lenders, get preapproved for a loan. Preapproval requires a hard credit inquiry, but it gives you a better sense of your eligibility. You can then use your preapproved offers to negotiate a better deal.

Submit your preapproval applications within a short period. FICO considers all applications for the same type of loan submitted within 45 days as one inquiry. VantageScore does the same, but you must submit the applications within 14 days.

Negotiate loan terms

Don’t assume the first offer is the best one. Even with bad credit, you can negotiate.

Preapproved offers will give you more leverage with lenders and dealers. It indicates that you’re serious about buying a car and may motivate them to negotiate with you. If you can secure a lower sales price, you may qualify for a lower interest rate when you finalize your loan.

Some lenders offer to beat any rate you get from a competitor. You can always present your best offer and ask the lender or dealership if they can do better.

Provide required documents

When you apply for the auto loan, you’ll need documents. Here’s a table illustrating what most lenders require.

Document	Why it’s necessary	Examples
Personal details	Confirm identity and check credit	Name, date of birth, SSN, phone number
Proof of income	Illustrates you can pay	Pay stubs, W-2s, bank statements, or tax returns
Identification	Verify identity	Driver’s license or passport
Proof of address	Confirms residency	Utility bill or lease agreement
Vehicle information	Identifies the vehicle for the loan	Complete bill of sale, purchase agreement, or buyer’s order
Insurance information	Auto insurance is required by law	Declarations page

Anyone can finance a car

Discover more about auto loans!

Frequently asked questions

1. How soon can you refinance a car loan with bad credit?

You can typically refinance a car loan as soon as three to six months after purchase. With bad credit, it’s imperative that you’ve made on-time payments on your loan and your vehicle has retained enough value. Look for lenders who specialize in bad credit auto refinancing.

2. What is a good credit score to buy a car with no down payment?

A credit score of at least 690 is generally good enough to qualify for a car loan with no down payment. While you can secure a loan without putting money down, you can get better terms with a large down payment.

3. How can I get a car with bad credit?

To get a bad credit car loan, save for a large down payment, select a less expensive model, and enlist a co-signer. Borrowing less with a co-signer reduces the risk for the lender.

4. Where can I get a car with bad credit and no money down?

You may be able to get a car from a “buy here, pay here” dealership. Buying a vehicle this way is usually expensive and should be a last resort. Look into online lenders and credit unions that work with bad credit borrowers. These loans often come with higher interest rates when you don’t put money down, so comparing offers is essential.

5. What is the minimum credit score for vehicle finance?

There isn’t a universal minimum credit score for financing a vehicle. Most lenders require a score of at least 500. Borrowers with lower scores may still qualify. Expect to pay more for the loan.

Bottom line

Financing a car with bad credit is doable, but the best thing is to first improve your credit score. Dispute errors on your credit report. Consistently pay all your bills on time. Keep your credit utilization down. Over time, your score will improve.

Once your score is over 690, you can access much better loans. It still pays to get preapproved and compare offers. That will give you leverage to negotiate and find the best deal possible.

1. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.

2. Paycheck Advance is an earned wage access service and is not a loan or credit product.

3. Current is a financial technology company, not an FDIC-insured bank. FDIC insurance up to $250,000 only covers the failure of an FDIC-insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. Banking services provided by Choice Financial Group, Member FDIC, and/or Cross River Bank, Member FDIC. The Current Visa® Debit Card, which may be issued by Choice Financial Group and/or Cross River Bank, and the Current Visa® secured charge card, which is issued by Cross River Bank, are all issued pursuant to licenses from Visa U.S.A. Inc. and may be used everywhere Visa debit or credit cards are accepted. A Current debit account is required to apply for the Current Visa® secured charge card. Independent approval required.

4. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

5. Debit card: Fees may apply, including out of network cash withdrawal fees, third-party fees, cash load fees, inactivity fees, account closure fees, international transaction fees, replacement card fees, express mail fees and escheatment fees. Build Card: Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

6. The Current Visa® Debit Card is issued by Choice Financial Group pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Current Visa® secured charge card is issued by Cross River Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required.

7. Individual results may vary. Using your credit card responsibly may allow you to improve your credit score. Credit building depends on various factors, including your payment history, credit utilization, length of credit history, and other financial activities.

8. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

9. Funds held in Savings Pods are FDIC-insured on a pass-through basis up to $250,000 at our partner bank Choice Financial Group, member FDIC.

10. Actual overdraft amount may vary and is subject to change at any time, at Current’s sole discretion. In order to qualify and enroll in the Fee-Free Overdraft feature, you must receive $500 or more in Eligible Direct Deposits into your Current Account over the preceding 35-day period and fulfill other requirements subject to Current’s discretion. Negative balances must be repaid within 60 days of the first Eligible Transaction that caused the negative balance. For more information, please refer to Fee-free Overdraft Terms and Conditions. Individual Current Accounts only.

11. For eligible customers only. You may earn Points in connection with your Build Card purchases at retailers whose merchant code is classified as: Dining (e.g., restaurants) and Groceries (e.g., supermarkets) and by completing other actions that Current designates as subject to the Current Points Program. The amount of Points granted for different actions as well as the purchase requirements necessary to earn Points will vary, and is subject to Current’s sole discretion. After qualifying, please allow 3-5 business days for points to post to your Current account. Points will expire 365 days after they settle. For more information (including specific eligibility criteria), please refer to the Current Points Terms and Condition.

12. Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

13. Boost Bonuses are credited to your Savings Pods within 48 hours of enabling the Boost feature and on a daily basis thereafter, provided that the Savings Pod has accrued a Boost Bonus of at least $0.01. No minimum balance required. The Boost rate on Savings Pods is variable and may change at any time. The disclosed rate is effective as of August 1, 2023. Must have $0.01 in Savings Pods to earn a Boost rate of either 0.25% or 4.00% annually on the portion of balances up to $2000 per Savings Pod, up to $6000 total. The remaining balance earns 0.00%. To earn a Boost rate of 4.00%, the sum of your Eligible Payroll Deposits over a rolling 35-day period must be $500 or more, with at least one Eligible Payroll Deposit equalling a minimum of $200. For more information, please refer to Current Boost Terms and Conditions.

14. Your money is FDIC-insured on a pass-through basis up to $250,000 at each of our partner banks, Choice Financial Group and Cross River Bank, members FDIC.

15. Average value based on Fine Hotels + Resorts bookings in 2023 for stays of two nights. Benefits include daily breakfast for two, room upgrade upon arrival when available, $100 amenity, guaranteed 4PM late checkout, and noon check-in when available. Certain room categories not eligible for upgrade. $100 amenity varies by property. Actual value will vary based on property, room rate, upgrade availability, and use of benefits.

16. Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

17. The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

18. Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g. plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one- way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

19. Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.

20. Coverage for a Stolen or damaged Eligible Cellular Wireless Telephone is subject to the terms, conditions, exclusions, and limits of liability of this benefit. The maximum liability is $800, per claim, per Eligible Card Account. Each claim is subject to a $50 deductible. Coverage is limited to two (2) claims per Eligible Card Account per 12 month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

21. When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty§ can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

22. Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited to up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits Apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

23. Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

24. The secured Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.

25. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.

26. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

27. There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.

28. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

29. Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

30. Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2020 and October 2020 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.

31. On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

32. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

33. SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your Visa debit card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.

34. Tipping or not tipping has no impact on your eligibility for SpotMe®.

35. Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

36. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.

37. Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.

38. Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member’s direct deposit enrollment status.

39. Funds are automatically debited from your Checking Account and typically deposited into the recipient’s Checking Account within seconds. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed.

40. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed. Non-Chime members must use a valid debit card to claim funds.

41. Not affiliated with Empower Annuity Insurance Company of America (www.empower.com). Not everyone will qualify. Offers range from $10-$300 for first-time customers; $10-$400 for all others. Offers are based on our eligibility requirements and can go up with on-time payments. In Feb 2025, the average offer was $95 for first-time customers; $187 for all others. Instant delivery is optional—see fees in Empower’s Terms. Empower offers a 14-day trial for first-time customers followed by an auto-recurring $8/month subscription fee. Cancel anytime.

* EarnIn is not available for Connecticut residents

Rachel Alulis

Rachel Alulis has been the lead editor for Moneyfor's credit cards team since 2015 and for the financial rewards team since 2023. Before joining Moneyfor, Rachel worked at USA Today and the Des Moines Register. She then established a successful freelance writing and editing business specializing in personal finance. Rachel holds a bachelor's degree in journalism and an MBA.

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Get Bad Credit Auto Loans With Guaranteed Approval

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Can you get a car loan with bad credit?