The best lenders for bad credit
Best Auto Loans of 2019
Table of Contents
While we’d all like to have the funds to cover this purchase without a loan, that’s simply not a reality for most people in need of a vehicle. This is especially true if you want reliable transportation that lasts for more than just a few years.
Best Online Auto Lenders for Good Credit
You can also get a customized interest rate estimated by providing your desired loan amount, credit score or category, and zip code. That’s extremely helpful information when determining how much car you can afford.
Once you’ve got your ballpark interest rate, you can use the auto payment calculator to figure out your estimated monthly payment. However, your minimum loan amount must be $8,000 and you must earn at least $1,800 each month.
CarsDirect accepts borrowers of all credit types, so it’s an easy one-stop shop for anyone looking for an auto loan. They’ve been in the business for nearly 20 years and have helped 5 million customers in that time.
The application takes as little as 60 seconds, and once you submit it, you’ll receive multiple offers from various lenders. That’s a bonus for some people because you can compare loan products without filling out countless applications.
To see exactly what kind of auto loan you qualify for through LendingTree’s network of lenders, you can compare offers for free. And if your payments are higher than you’d like because of your credit score, you can always refinance later down the road, if that makes the most sense for you.
Best Auto Lenders for Bad Credit
Auto Credit Express
Not only can you qualify with poor credit at Auto Credit Express, you also face fewer restrictions on the type of care you can finance. For instance, there aren’t any age or mileage requirements, so you can get a car as old as you want.
Blue Sky Auto Finance
In addition to relatively lax credit requirements, Blue Sky finds lenders who don’t require any money down for a loan. The maximum loan amount is $30,000, giving you a variety of options when it comes time to pick a car.
Best Traditional Auto Lenders
Bank of America
Bank of America is also a large financial institution advertising low rates. Of course, your specific rate depends on your credit history, where you live, and other factors, but it’s a good place to begin.
Another great feature from B of A is that you can get a 30-day rate lock. So if you know you need a car but want to take your time and shop around, this gives you the flexibility to do so without stressing about rising interest rates.
You also get to see what other people paid for the same car, to give you an idea of what kind of deal you’re getting. If you don’t want to shop online for a car, you can just get a straightforward auto loan for a new or used vehicle.
Chase’s online portal lets you calculate payments and check on the status of your application. One thing to note is that the credit decision and closing processes differ depending on whether or not you’re currently a Chase customer.
You can get a loan for either a new or used vehicle, and can also refinance your current auto loan. A major bonus is that there is no down payment required, which is helpful if you’re cash-strapped at the moment.
For any vehicle you choose, it must be no more than six years old with a maximum of 100,000 miles logged. One of the convenient things about U.S. Bank is that you can apply online, over the phone, or in person.
How to Pick an Auto Lender
After all, this is a decision that will impact your finances for the next several years. There’s no need to go so fast that you end up missing out on the best loan experience. Here are a few tips to get you started with the loan process.
Set a Timeframe to Search
If you’re shopping for the same loan type over the course of a month or so, each inquiry will most likely be lumped together as one since you’re clearly comparison shopping. If it’s spread out too long, however, your score could take a big hit, with each inquiry costing you around five points.
Another reason you want to give yourself a timeline is because of interest rates. If you get an estimate on your interest rate in the spring but wait until the fall to make a purchase, you may be in for an ugly surprise.
Select Your Loan Type
When searching for auto lenders, you can first narrow them down by the type of loan you need. You can tell after reading the reviews above that some lenders only offer loans for new and used vehicles from dealers.
The same holds true for refinancing an existing car loan and for buying out a leased vehicle. There’s no sense in getting quotes from a lender that doesn’t even provide your loan type, no matter how low their interest rates seem.
Compare Interest Rates and Fees
Speaking of interest rates, no two lenders are likely to offer you the exact same loan terms. You need to not only compare the interest rate, but also the APR, which incorporates any type of fee, such as an origination fee.
If you can afford both payments, which one will save you the most money over time? Does a lender charge any other fees, such as a check processing fee? How are origination fees paid for? These are all questions you need to ask to avoid any unpleasant surprises once the loan is fully processed.
Check Your Local Credit Union
Credit unions have a reputation for offering competitive auto loan rates for their members. Look around and see if there are any local credit unions that you could qualify for membership — most are pretty broad these days.
This simple extra step could land you a better rate. The only downside is that it does take a bit more effort since you have to become a member. Additionally, while many credit unions are incorporating better technology to their online application process, some smaller institutions may have a more paper-based system in place.
Consider the Application Decision Timeline
Most online lenders boast a quick application process, so delve a little deeper to get the actual details. Even if you get a credit decision within moments, find out how long the underwriting process takes.
If the lender boasts same day or next day funding, figure out what you need to do on your end to make that happen. In most cases, you’re responsible for providing income verification documents and signing a loan agreement before any funds can be released.