How to find the best auto loan for bad credit

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When you need to finance a car with a credit score south of 600, you’ll be looking at an auto loan for bad credit.*

As there are different sorts of poor credit, such as those caused by a discharged bankruptcy, no credit history or just late payments, the best option will depend on your own situation. That said, there are some general points that will help you find it. Overall, you’ll want a lender that’s easy to deal with, offers the greatest chance of approval and, if approved, gives you the most favorable terms on your loan.

Read through the following areas to better understand what your best auto loan for bad credit could be.


Loan comes from a lender attuned to your situation

Some lenders won’t take applications from consumers with subprime credit, and others that will might not be set up to give you the best rates. A lender like RoadLoans, however, accepts applications from people with a broad range of credit and has many years of experience working with customers who have low scores. We’ve helped thousands of people in this position get into their first or next vehicle.


Its terms are best suited to your needs

If approved for a loan, you’ll want the lowest interest rate and APR to keep your financing costs down. Also, be realistic about what you will be offered; credit score is typically a significant factor in determining your interest rate, so a consumer with a poor credit score is more likely to get a higher rate than someone with better credit.

There are other important terms to consider, too, including a monthly payment that fits your budget and works with your loan duration. While a longer loan is appealing because it normally keeps monthly payments down, it also means you’ll pay more in total interest, and increases the risk of negative equity.

Think about the down payment requirement, as well. The more money you can put down means the less you will need to borrow and pay interest on. However, sometimes a borrower doesn’t have much or any cash to put down. In these cases, RoadLoans does its best to help by offering qualified applicants a low or even no money down option.


Lender offers a flexible approach to financing

Flexibility can make a real difference to the financing experience, and it’s something that consumers with poor credit can enjoy. For example, online lenders enable you to apply when it suits you, without the pressure of seeking financing at the dealership. If approved at, you’ll receive multiple offers tailored to your needs so you can select the best one and shop for a car with confidence. If the dealer offers you financing, compare it to your preapproved loan offer.


They’re great to work with

The best auto loan will also come down to how easy it is to work with the company that provides the loan and services the contract. Is the application process straightforward and convenient? Can you get the information you need if you have questions? Will you be able to make monthly payments with no hassles? Consider these points when you choose a lender with which to apply for a loan, and think about RoadLoans as you do so.

Our short online application takes a few minutes to complete and we provide instant decisions. If approved, you can review your offers, make your loan selection and visit the recommended dealer to shop for a vehicle. Alternatively, use our dealer locator to find another. We work with a network of auto dealerships able to offer our customers select, high-quality vehicles meeting our standards for age, mileage and financing. If you have any questions during the application or financing process, our knowledgeable loan specialists are available to help by phone or our online chat service.

Apply for a car loan and see if you’re approved.


* “Bad” or “poor” credit generally is considered a FICO score around 600 and below by sources including the Consumer Federation of America and National Credit Reporting Association (reported by the Associated Press),,, Investopedia, and others. The Congressional Budget Office identifies a FICO score of 620 as the “cutoff” for prime loans. FICO scores are not the sole factor in lending decisions by and Santander Consumer USA.



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