Bad Credit Car Loans
Get the Facts. Get the Loan.
Low credit scores will not stop you from getting an auto loan.
Bad credit auto loans are easier than ever.
Try our top 3 recommendations for re-establishing credit now.
Capital One Auto Finance
(open for all)
Loans up to $40,000 on new vehicles.
Loans up to $30,000 on used vehicles.
Repo, charge-off, collection, bankruptcy, foreclosure, tax lien — no problem.
Can I get a low rate with bad credit auto loans?
No. Your interest rate will be high because you are considered a high risk. You may pay slightly lower interest with a larger downpayment. No worries here though. You can refinance when your credit improves.
Is there a prepayment penalty?
No. You may prepay car loans at any time.
Why are banks willing to lend money for bad credit car loans?
The car is collateral that banks can repossess and sell if the buyer stops paying.
Why is the finance charge so high?
Because the interest rate is high. (See next question.)
If I multiply the rate by the amount financed,
then it is lower than the finance charge.
Was I overcharged on the finance charge?
No. The interest rate is an annual percentage. This means that if the you're at 20%, then you pay about 20% per year on the principle balance.
Am I paying double for my car?
Yes. At 20%, you may pay near double for your car after making all scheduled payments. You can save money by paying extra towards principle each month, repairing your credit, and then refinancing the loan.
When should I refinance?
Make all your payments on time. Pay extra towards principal each month if you can. Make payments for eight months. During that eight months also try to repair other open collections. Then refinance.