Buying a car with bad credit doesn’t have to be a dead-end road. While a lower credit score can make borrowing more expensive, there are still several lenders in 2025 offering competitive rates and flexible options for borrowers with credit challenges. Here’s a look at the 10 best car loans for bad credit in the U.S. this April, highlighting each lender’s pros, offerings, and what makes them stand out.
1. Auto Credit Express
Auto Credit Express is one of the leading car loan providers specializing in subprime auto loans. They’ve been helping consumers with credit scores as low as 500 find financing through a large network of dealerships and lenders. What sets Auto Credit Express apart is their strong focus on matching borrowers with lenders who understand bad credit situations, including those who’ve gone through bankruptcy or repossession. The pre-qualification process is fast and doesn’t affect your credit score, making it ideal for comparison shopping. They also offer tools and calculators to help you estimate payments before you commit, which is perfect for budget-conscious buyers.
2. Carvana
Carvana is well-known for its online car-buying experience, and its financing options are also accessible to those with bad credit. Carvana doesn’t require a minimum credit score and focuses more on your income and debt-to-income ratio. This makes it a viable option for those rebuilding their financial profile. With a completely online process, including car browsing, loan approval, and delivery, Carvana makes the process streamlined and stress-free. What’s more, they offer a 7-day return policy, allowing buyers to test the car and financing before fully committing, which can be reassuring when making such a big decision with limited credit options.
3. Capital One Auto Finance
Capital One Auto Finance is one of the few major banks offering a pre-qualification process that doesn’t impact your credit score. They work with a network of dealerships and allow borrowers to shop for cars and loans simultaneously through their Auto Navigator tool. While they typically cater to borrowers with fair to good credit, they also consider applications from those with credit scores in the low 600s or high 500s. Their competitive rates and transparent loan terms help bad credit borrowers understand exactly what they’re signing up for. Their customer service and reliability as a well-known institution also give peace of mind.
4. LendingTree
LendingTree is not a lender itself, but a loan marketplace that connects borrowers with multiple offers. This platform is excellent for comparison shopping, especially if you’re concerned about being approved due to your credit score. LendingTree has lenders in its network that specifically cater to subprime borrowers. When you fill out a single application, you may receive multiple offers, giving you the chance to compare APRs, repayment terms, and down payment requirements all in one place. LendingTree also offers educational resources that empower borrowers to better understand their credit and financing options.
5. DriveTime
DriveTime is both a dealership and a lender, making it an all-in-one option for bad credit car buyers. They specialize in working with customers with scores as low as 400, and they make the process transparent and straightforward. DriveTime claims a high approval rate and offers a down payment calculator to help buyers understand upfront costs. They also offer a limited warranty on vehicles and a 5-day return policy, which is rare in the used car market. Their in-house financing model means decisions are based more on income and stability rather than just credit score.
6. MyAutoLoan
MyAutoLoan is another lending marketplace that helps borrowers with various credit backgrounds, including poor credit, find financing. Their platform is easy to use and can return up to four loan offers within minutes. With loans available for new and used cars as well as refinancing, MyAutoLoan gives consumers flexibility depending on their needs. While they recommend a minimum score of 575, they also assess other financial factors, making it more accessible to a wide range of borrowers. Users appreciate their transparent fee structures and the ability to compare rates without impacting credit initially.
7. Prestige Financial
Prestige Financial caters specifically to customers with challenged credit, including those with recent bankruptcies or repossessions. They’re one of the few lenders that accept applicants even in active Chapter 13 bankruptcy, provided they meet other income and stability requirements. Prestige Financial offers direct lending as well as dealer financing, allowing borrowers to work through multiple channels. They focus on helping borrowers rebuild their credit through on-time auto loan payments. Their customer service receives consistent praise for working with individuals through every step of the process.
8. RoadLoans
RoadLoans is a direct-to-consumer lender that accepts applicants with all types of credit. They’re a division of Santander Consumer USA and offer loans for both new and used vehicles. Bad credit borrowers are welcome, and the application process is entirely online, with fast approval decisions. RoadLoans also offers a car-buying service through a network of dealers that accept their financing. Their transparency and no-pressure approach make them a solid option for borrowers who want to compare deals before stepping into a dealership.
9. OpenRoad Lending
OpenRoad Lending is best known for auto loan refinancing, but they also offer purchase loans for customers with less-than-perfect credit. Their application process is simple, and their approval criteria are flexible. They work with a wide array of lenders to help borrowers secure favorable terms. While their best rates are reserved for good credit borrowers, they still provide viable options for those looking to refinance an expensive loan into a more manageable one. OpenRoad’s customer support is another standout, with loan specialists available to walk you through every step of the process.
10. LightStream (With a Cosigner)
LightStream, a division of Truist, is typically reserved for borrowers with good to excellent credit. However, if you have a cosigner with strong credit, you can tap into LightStream’s competitive rates and flexible loan terms. This option is great for someone with a low score who has a trusted family member or partner willing to help. LightStream offers unsecured auto loans, meaning no collateral is required, and they have no fees or prepayment penalties. They also guarantee to beat any competitor’s rate by 0.10% if you qualify. This makes them an elite choice when you have the right financial support system.
FAQs
Q1: Can I get a car loan with a credit score below 600?
Yes, many lenders specialize in subprime auto loans for borrowers with scores below 600. Companies like Auto Credit Express, DriveTime, and RoadLoans accept applicants with credit scores as low as 400–500. Be prepared for higher interest rates and potentially larger down payments.
Q2: Will applying for multiple car loans hurt my credit?
Not necessarily. If you apply to multiple lenders within a short period (usually 14 to 45 days), it’s considered one “hard inquiry” for credit scoring purposes. Some platforms also offer pre-qualification with a soft credit check, which doesn’t affect your score.
Q3: Is a cosigner a good idea for bad credit auto loans?
Yes, having a cosigner with good credit can significantly improve your loan terms, including lower interest rates and higher approval chances. It also opens the door to lenders like LightStream that may not otherwise consider your application.
Q4: What’s the best way to improve my chances of approval?
To boost your approval odds, ensure you have a steady income, reduce existing debts, offer a larger down payment, and apply to lenders that specialize in bad credit. Pre-qualification tools can help you gauge your chances before submitting a full application.
Conclusion
Getting an auto loan with bad credit in April 2025 is not only possible but increasingly accessible thanks to lenders that understand the challenges of today’s economy. From online marketplaces to direct lenders, options abound for borrowers willing to do their research. Whether you want to buy a car today or refinance a high-interest loan, the key is to compare offers, understand the terms, and look beyond just the interest rate. With patience, smart shopping, and the right lender, you can hit the road without breaking the bank—even with bad credit.