Bad Credit Car Shopping: Three Lenders That Finance Drivers With Imperfect Scores

A car purchase can be nerve-racking, particularly for anyone who has been turned down for financing before. Still, the idea that bad credit rules out an auto loan is a myth. Anyone can apply, whether a low score comes from a short credit history or from past money mismanagement. Monthly payments may even turn out lower than expected.

The three lenders below are options for buyers with poor or limited credit.

Auto Credit Express

Auto Credit Express promotes "Hassle-Free Auto Financing" and aims to make finding suitable financing quick and simple, whatever the credit score. It will even arrange loans for people who have gone through bankruptcy or have a score under 625. Borrowers can finance a new or used car at the dealership of their choice.

One requirement matters here: applicants with a score below 625 need gross monthly earnings of at least $1,500 to qualify.

Pros:

• Several loan options are available
• New and used cars can both be financed
• Older model vehicles are accepted
• Buyers can go through a traditional dealer or a special finance dealership

Cons:

• Cars bought from private sellers are not eligible

Capital One

Capital One provides financing for new or used cars through more than 12,000 dealerships across the USA, and that includes buyers whose credit is far from stellar. Its pre-qualification process lets applicants check eligibility without taking a hit on their credit report, so comparing loan rates will not damage a score. The lender also offers an Auto Navigator tool, which instantly lists potential car payments and loan interest rates side by side.

Pros:

• The application is simple and quick
• Financing can be arranged online

Cons:

• Purchases from private sellers cannot be financed
• The loan must be at least $4,000

MyAutoLoan.com

Getting approved with a low credit rating is often difficult. Many lenders reject applications outright or attach unfavorable terms, such as a high interest rate. MyAutoLoan.com is willing to work with a borrower's credit situation to land a good deal, and in as little as 2 minutes it can turn up several lenders and loan options.

Qualifying requires a monthly income of at least $1800. The credit report should also be free of bankruptcies, and the vehicle being financed should be no more than ten years old. The interest rate calculator on the myautolaon.com website can help estimate a potential APR.

Pros:

• The process is fast and easy, with applications taking as little as two minutes
• Each search returns a choice of 4 lenders
• Approval can arrive within 24 hours
• Private-seller purchases are eligible
• There are no fees
• Refinancing is also available

Cons:

• Personal information is shared with lenders
• An older, high-mileage vehicle may cause the loan to be denied

Start the Search Online

Buying a car is a dream for plenty of people, though it can be stressful, especially when financing with weak credit. Buyers with low scores or a thin credit history often struggle to find the right lender. A bit of online research can uncover good loan deals. The recommendations above are a solid place to begin looking for a lender and moving toward owning a new vehicle.