Top 3 Low or Bad Credit Auto Loans in 2021


You rely on your vehicle each day to get to and from your job or studies, attend tasks, and even head out for some recreation. So, if it needs serious repairs or just gives up, you may be forced to fix or replace it. This is easier said than done if you have no credit score. 

How can you possibly get financing on a car with no credit history? This is where the no-credit history car loan comes in. We’ve put together a collection of loan platforms and important things to know when shopping for an auto loan with no credit or bad credit, so you can take some of the guesswork out of finding a loan.

Most individuals experience some form of financial hardship and challenges that can negatively impact credit in various ways. Having a car is an important asset to help you rebuild or create a solid credit score. 

Anyone with a score of below 580 or no credit history may feel that attaining an auto loan is near impossible. There are, however, multiple networks of creditors that provide loans to those without credit or with lower, less favorable credit scores. 

These creditors could be the best opportunity to build or rebuild a reputable credit rating.

Best 3 Companies That Provide No-Credit or Bad-Credit Auto Loans:

  1. Auto Credit Express: Best Company for Auto Loans Overall 
  2. Car.Loan.Com: Top Auto Financing With Bad Credit 
  3. myAutoloan: Great Option for Best Auto Loan Rates 

Here are 3 Top Companies That Provide Best Car Loan For Bad Credit

Fortunately, bad-credit car loans do not have any federally regulated or minimum credit score needed to be approved. Individuals without credit scores or even those with a bad history can get the auto financing they need. 

The challenge is finding the creditor or financier that will be best suited to getting you on the road. Data shows that in the United States those considered to have less favorable credit in the United States have comparable loans to those with favorable credit.

There is always the option of going directly to a car dealership in your area that will gladly offer you loans. Some are far less reputable than others, and the process of determining which are which can be taxing. 

There are numerous examples of questionable fees hidden in the fine-print and overly expensive car loans or personal loans offered, as it is not uncommon for some creditors to take advantage of individuals with challenges with their credit history. 

While knowing all your options is the best way to go, the real challenge is that some people find their financial institutions offer better deals, while others find dealers or lenders outside of these institutions to have the best options. It all depends on the additional fees or terms and conditions being applied. If this all seems overwhelming, it can be, but do not let this put you off trying. We are here to help.

Obtaining pre-approval from your bank or credit union can help you get favorable terms at your local car lot. But even without this, most creditors can quickly determine whether or not you qualify for a loan. 

The chances of being denied or straight-up ripped off if you have bad or no credit increase drastically when seeking loans on your own, as not all dealerships are subject to regulations at a federal level. The platforms discussed in this article may help you avoid situations such as these.

If the world was perfect, everyone would have flawless credit scores, proving their ability to repay a loan. However, auto loan companies know this isn’t reality. You may have no credit score simply due to your age or lack of experience with loans. 

Maybe you’re new to the country, or it could be that you haven’t had the opportunity or need to use conventional credit accounts. Regardless of the cause for your poor credit score, these car loans may be the solution you are looking for.

#1. Auto Credit Express: Best Company for Auto Loans Overall 

Interest Rates: From 3.99% – 29.99%

Operating Since: 1999

Application Timeframe: 3 Minutes 

Reputation: 9.5/10

Instead of offering car loans directly, Auto Credit Express is a platform that can connect you to lenders who offer no-credit auto loans. You only need to fill out a quick qualification form to be presented with your options. 

Using Auto Credit Express to find a loan within their large lending network saves you the time of searching for an online lender that accepts bad or no-credit applicants. Auto Credit Express can do the hard work for you and get you financing in as little as 24 hours. 

All auto lenders have different requirements to qualify but being 18 or older and having a monthly income of at least $1500 are standard eligibility requirements. Auto Credit Express may accept guarantors and could help you find both second-hand and brand-new cars.

Only residents of the United States or Canada can qualify for a loan through their platform. While there is no mention of a required minimum credit score, this is often a condition that is established by each individual lender when reviewing loan applications.

There are many lenders who offer bad-credit auto loans to individuals who have bankruptcy declarations or have even had repossessions in their past. Remember, just because you feel your credit is no good, options may still be available to you through Auto Credit Express

Some creditors even offer a zero down payment option; however, we recommend paying the highest down payment possible, as this can decrease the required loan amount and alleviate some pressure on high monthly payments. Trade-ins are also an option with certain dealers and can be a significant down payment.

There may be regional restrictions when processing an application. Keep in mind that there are close to a thousand online lenders within Auto Credit Express’ national lending network, but you may not qualify with all these, as requirements differ from creditor to creditor.

As with any agreement, always make sure you fully understand all terms and conditions. Another important thing to remember is that although Auto Credit Express will not perform a hard credit inquiry when you submit your application, lenders will likely do so before approving your application and sharing your options.


  • Over 20 years experience
  • Simple and quick prequalification form
  • Works with types of credit scores 
  • May require only minimal down payment
  • Simple eligibility requirements


  • Some lenders may offer high interest rates
  • Limited to only lenders within Auto Credit Express’ network 

=> Click here to visit and know more about Auto Credit Express

#2. Top Auto Financing With Bad Credit

Interest Rates: Vary

Established: 1994

Application Timeframe: 3 Minutes

Reputation: 9.0/10 began helping people with bad or no credit find auto loans in 1994. If you have struggled to establish or keep a good credit history, this platform may be a great option for you. offers swift approval, inexpensive payments, and zero application fees. For a better idea of your monthly installments and the loan amount, their website offers calculators for better estimates.

Much like the other platforms discussed in this list, offers introductions to creditors and their partners and does not finance car loans themselves.’s platform is focused on helping you find a car loan tailored for you based on your credit score and individual needs. So even if you have struggled to find options in the past, may have options for you. usually sends the details of your loan request and your personal information to up to five potential creditors based on your qualifications. Once you have submitted your application, creditors usually contact you via phone in minutes. However, please note that it could take up to 24 hours to receive a call. 

By doing all the heavy lifting for you, seeks to arrange a meeting between you and a finance manager of one of the creditors in your vicinity, allowing you to select a vehicle that meets your needs and complete the necessary documentation. 

Options for purchasing from private sellers, refinancing, and buyout loans are not available through As is common with these types of platforms, will also limit your options to only those creditors within its network. Filling out an application on is also the only way to know your options, as they do not list their partner creditors on the website itself. 

As with other platforms on this list, may include in-house finance offers from creditors, which potentially come with interest rates of 20% in some states, which is much higher than the average of credit unions or most banks. You should also ensure that these dealers report all installments to the appropriate credit bureaus to help establish your credit. 

Always remember that no platform guarantees approval, and factors such as high loan rates, APR, and interest rate should be considered. Vehicle options may also be limited based on the creditor situated in your area, and you can expect that some of these may have additional fees, even though does not. customer service can only be reached via an online form, and there is no other contact information available. There is, however, a calculator that will help you get a feel for the potential auto loan offers based on your input. 

If you have been struggling to seek out bad-credit loan options, is a viable solution to counter the stress-inducing process of personally searching around. When using, expect that either the platform itself or its partner creditors may contact you if you meet the requirements. 

You will be asked to share your social security number and likely have multiple credit checks run by the various creditors that works with. These inquiries should only be considered a single check, as long as they happen within 14 days of each other.


  • No cost, no-obligation application
  • Fast approval
  • Good for applicants of all credit scores
  • Works with applicants who have declared bankruptcy or had repossessions filed
  • No additional fees


  • Offers limited types of auto loans 
  • Some creditors may offer high APRs 

=> Click here to visit and know more about

#3. myAutoloan: Great Option for Best Auto Loan Rates

Interest Rates: Vary

Established: 2003

Application Timeframe: 2 minutes

Reputation Score: 7.5/10

In 2003, myAutoloan started helping buyers take the wheel in financing, researching, and purchasing cars or motorcycles. You can take advantage of this marketplace without charge and find up to four loan options in no time at all.

Although most of its partners offer loans for both new or used cars, they expect some restrictions on certain vehicles, such as repossessed, auctioned, salvaged titles, conversion vans, and some sports cars.

myAutoloan uses a “preferred placement” formula for evaluating you. This allows them to ensure you are matched with creditors based on your profile. The formula takes your personal information, including your socials and method of earning, and uses this information to connect you to a maximum of four options.

myAutoloan offers various auto finance or car loans, from private sellers to new, used, auto refinance loans, and even lease buyouts. They require a slightly higher FICO score than other options, asking for a score of at least 575. 

Keep in mind a higher score means lower rates and better options for loan terms. Should you wish to use myAutoloan to discover options for attaining a car loan, always consider finding a guarantor with a solid financial history, as this tends to increase your chances of approval, as well as providing terms that are more to your liking. 

Remember shopping around and doing a comparison of different creditors and their offers may lead you to the best deal. Completing the application on myAutoloan is a breeze, and a soft credit check is done immediately to introduce you to four options. This soft check does not have any impact on your credit rating. Do remember, though, once you have selected a creditor, they may run a hard check, which can have a short-term effect on your overall rating. 

Once approval is granted and you have decided which offer is preferred, it may only take 24 hours to collect your check once an agreement is signed. Then all you need to do is head to the dealer you have selected and apply it to your car loan. 

myAutoloan has some creditors offering up to 72-month loan terms with a minimum of $5,000 for refinanced or $8,000 for new car loan. There is a requirement of $21,000 annual income as prequalification, and some partners may require a down payment. 

Vehicle restrictions may include no cars over 10 years old or with a mileage of 125,000 and more. myAutoloan allows you to select the dealer or seller you prefer to work with and removes the fuss from comparing multiple offers. 

If you are looking for a loan below $8,000, myAutoloan may not be the best option for you. It is also likely that creditors and partners of myAutoloan may contact you directly if this unwanted communication is something you would prefer to avoid. It may be best to seek another option.


  • Offers refinancing and both new and used auto loans
  • Large network of lenders
  • Interest rates are within the industry average 
  • Fast application and approval
  • Minimum credit requirement of 575 FICO
  • Online Loan certificate or check available in as little as 24 hours


  • There are some restrictions on available cars
  • Not available to residents of Alaska or Hawaii
  • New cars have a minimum loan amount of $8,000. 

=> Click here to visit and know more about myAutoloan

Helpful Steps to Find a Car Loan without Credit

Here are some ways to increase your chances of being approved for your car loan:

  • Find a Guarantor

Speak to your friends and family members who have good credit. They may be willing to cosign for your car loan. This increases your chances of getting approved with a more affordable interest rate. The guarantor will be responsible for making payments if you do not, so only ask someone to cosign if you are sure of your ability to make payments.

  • Be Sure of Your Ability to Earn

Your chances of being approved increase if you can show you have a steady stream of income you can use to make payments. Of course, your tenure with your company can also play a role in the type of approval you get. But, again, this shows a potential creditor how stable your source of income may be.

  • Make a Down Payment

This decreases your initial loan amount and reduces the amount of interest you are required to pay. Even a minimal down payment can have a favorable impact on your loan. Also, try to avoid accepting a longer-term solely to afford a more expensive car. This usually leads to you paying much more than the car is worth due to the interest.

  • Know Your Options

It may be tempting to accept the first offer you receive but checking other options and doing your homework can save you a small fortune in the long run. Again, be wary of hidden charges, and if an offer is too good to be true, you should definitely check all the agreements thoroughly.

  • Build Your Credit

If you do not need to purchase a car immediately, take this time to improve or create your credit score. Do this by avoiding late payment on bills and paying any outstanding debt, and addressing any inconsistencies on your credit report. This will ensure better and more affordable options in the future.

The above tips may help you increase the likelihood of being approved for a loan and ensure you get the best available offers, no matter your credit history.

Is It Possible to Attain a Loan Without Credit?

It may seem impossible to get a car loan without credit, and yes, it is challenging, but that doesn’t mean it cannot be done. There are comparable amounts of loans approved for all forms of credit standings throughout the country each day. Be it personal loans, auto loans, or student loans.

There are also options for people without any established credit, as some creditors specifically work with new buyers.

Auto Credit Express,, and myAutoloan can introduce you to creditors willing to assist you with a car loan. As a person without credit, however, you can expect limited and less attractive options than someone with flawless credit. This is because creditors perceive extending a loan to no-credit applicants as high risk because of the lack of evidence of your ability to make payments. 

Without knowing your credit history, lenders consider providing you with a loan to be a gamble, resulting in less affordable terms and rates. Keep in mind that there are no federal regulations on the amount of interest or types of terms that most dealers can provide. 

This can often translate into much higher offers. Also, be sure to check the fine print to ensure that all charges are disclosed openly. Never sign an agreement without reading it carefully.

Approximate rates, payments, and interest for a 6-year car loan of $20,000.

FICO score range 781 – 850

  • Average APR: 3.50%
  • Monthly Payment: $308
  • Total Interest Paid: $2202
  • Total Cost: $22,202

FICO score range 661 – 780

  • Average APR: 4.50%
  • Monthly Payment: $317
  • Total Interest Paid: $2858
  • Total Cost: $22,858

FICO score range 601 – 660

  • Average APR: 7.50%
  • Monthly Payment: $346
  • Total Interest Paid: $4898
  • Total Cost: $24,898

FICO score range 501 – 600

  • Average APR: 12.00%
  • Monthly Payment: $391
  • Total Interest Paid: $8152
  • Total Cost: $28,152

FICO score range 300 – 500

  • Average APR: 15.00%
  • Monthly Payment: $423
  • Total Interest Paid: $10,449
  • Total Cost: $30,449

On the bright side, your no-credit car loan will have an impact on your credit score, meaning that as long as you maintain timely payments on your loan, your record will improve. 

This positively impacts the way future creditors will view you as a borrower and results in more favorable rates and terms. It could also lead to a higher chance of approval if you need another loan or line of credit elsewhere.

This is essentially your starting point and can prove to be a valuable path to improve your financial standing in the long run.

A car is an asset and often long-term investment that can add additional financial strain to an already challenged cash flow. Car loans can have a significant impact on your credit score. This could be positive or negative, so decisions like these need not be rushed. Taking time to review your options is always recommended, regardless of how bad you feel you need the car. 

It is not uncommon for us to want a car beyond our financial ability to pay for it, and this can lead us to accept a much longer-term payment to cover the monthly payment for the vehicle. This eventually leads to you paying much more interest over the loan, and in some cases may mean you pay much more than the car is worth. 

Keep in mind that vehicles do not increase in value the way property would and depreciate from the first time you turn the key. This means the longer you pay for it, the less it will be worth by the time you have completely paid off your loan. 

Consider the possibility that you may encounter some unforeseen circumstances that result in you needing to sell your car before the loan is paid off. The balance of the loan would still need to be paid back, and the car is now worth a lot less due to the extended terms you agreed to. 

This is why it may be best to avoid a bad deal or a car you know you cannot afford and compromise for a comparable car that won’t carry the same financial burden.

Is Having No Credit or Bad Credit Better, and What Are Credit Bureaus?

Both no credit and bad credit can have an unfavorable impact on your approval and terms of car loans. But bad credit has considerably more impact due to the evidence of your past transgressions and mistakes, showing you are less responsible with finances.

Those with bad credit generally have a record of account delinquency or delayed payment, have used a third of all available credit limits, or may have been bankrupt at some point. Therefore, it would be imperative to work on improving this record for creditors to view you as a borrower carrying less risk.

Being without a credit score means you have not had any form of loan or credit for at least the last seven years. Frequently, those with no credit are young adults that have only recently turned 18, or recent immigrants with no domestic financial record. This could also be the case for individuals who do not typically use credit and choose to pay cash for all purchases. 

Having no credit is like having an empty canvas on which to create a sound record. Bad credit, however, means the canvas is already soiled. Therefore, starting afresh is easier than dealing with your already bad credit, and then start rebuilding.

Having no credit does not need to be a negative thing. You essentially have a clear foundation to start building off of. Here’s a blueprint to get you started the right way. As intimidating as it may seem, building credit does not need to be complicated. 

Building a credit history means starting with the basics, such as taking out a car loan or opening a credit card. These accounts are typically reported directly to the credit bureaus, those being TransUnion, Equifax, or Experian. Each new piece of information they receive will have an influence on your overall credit score.

The challenge lies in the fact that most institutions offering accounts, credit cards, or loans generally want to check your credit before approving you of their services. However, there are a few ways to overcome this obstacle, such as applying for a credit card that requires a down payment or balance to build credit. These include secured credit cards, student cards, and retail cards. 

No matter which of these you choose, make sure you can afford to repay whatever you spend on them, and you’ll be well on your way to building your initial credit rating. Starting with a loan for school is another excellent way to kick-start your credit history. You can also look into adding alternative information, such as paying rent, gas or electric bills, or even cellular service payments, to your credit reports to help bulk up the amount of data influencing your credit. 

Regardless of which method you select for getting started, the most influential factor in successfully building a satisfactory rating is making your payments in full and on time.

When understanding credit bureaus or consumer credit agencies, as they are also known, it’s important to understand that there are three major bureaus in the United States, TransUnion, Equifax, and Experian. These may sound familiar to you, but you have no idea what they do. Much of your future financial or credit health is on the shoulders of these bureaus, and Equifax, Experian, and TransUnion all play a significant role in this. 

So, what is it they do? Well, a credit bureau collects and stores your monetary and personal information. They then take all this consumer information and create an organized report. 

This report is then sold to potential creditors, such as lending organizations, insurance providers, telecommunications companies, and various other businesses that may provide consumer solutions or accounts. Even your employer could gain access to your credit report for a fee. 

The primary focus of these bureaus is to assist possible creditors to gauge an individual’s creditworthiness or level of financial responsibility. It helps these creditors or lenders decide whether to provide you with the financial services you have applied for. 

It can, in some cases, even influence a potential employer’s decision on whether to hire you or not. It is not uncommon for landlords to request a credit report before accepting a tenant. This gives them an idea of whether the tenant is more or less likely to be able to pay their rent. 

Data gathered by these bureaus can include your past or current bank account information, payments, delinquent accounts, endorsements to collection agencies, and even the number of times your credit records were requested. Other than information about your financial institution, they also keep a record of your personal information, such as your social security number, the places you have lived, and your date of birth.

Credit bureaus get your information through many sources, including any creditors or lenders you may owe money for loans, such as a car or homes. They also collect public records, like information regarding bankruptcies, and sometimes collate information from other agencies or bureaus, especially if you file for a fraud alert. 

It is possible that your credit score can vary depending on which bureau the report comes from. But the same factors always influence the score, such as the percentage of your credit limits you are using, any new or additional credit, payment history, and even the length of time you have had a credit history. Although these scores may vary by a few points, they should represent an approximate average across the three bureaus.

Why Is My Credit Score Zero?

Zero credit scores are not an actuality; even if you have never had credit before, it is impossible to have a zero-credit score.

It is more likely that you may be considered “credit invisible.” This is due to your lacking records with the major credit bureaus. If you are sure that you have had credit before and that the creditor you work with was reporting your information. 

You can reach out to the credit bureaus and check if all your information is correct or if they may be able to see if there are any other factors impacting your visibility. 

The best ways to correct this are as follows:

  • Apply for a Retail Store Card

Cards such as a Target REDcard allow you to purchase items on credit from a specific merchant. Ensure you maintain a good payment record and that the store reports these records to the credit bureaus. This will help establish a credit record.

  • Secured Credit Cards

These are an alternative to traditional cards. They require a downpayment and will help build credit, as long as you use it conscientiously. These do need you to have some available funds to use them but just think of it as the first step in building a credit score. 

  • Apply for a Car Loan

Seek out a creditor willing to offer you a loan. Remember, having a guarantor can help ensure favorable terms and rates. Also, make sure you maintain a good payment record to better influence your credit.

  • Know Your Credit History

Once you have started to build credit, it is important to know what your reported history looks like. Getting a copy of your report from TransUnion, Equifax and Experian can be done via FICO scores can be anywhere between 300 and 850. Checking your reports for any inaccuracies and disputing such can avoid drops in your score.

Improving Your Finances With a No-Credit Car Loan

By now, you understand the impact and importance of the role credit plays for your financial future. Creditors may also look at other factors, such as your source of income and the amount you earn, your savings account, and your tenure as an employee. 

Seeking out a bad-credit auto loan that fits for you is never easy, especially when purchasing something as important and necessary as a car. All these factors add to the stress of taking the leap and agreeing on the terms of your first car loan. 

Remember, any loan you take will positively or negatively influence your credit rating. In fact, just having your credit report requested by a potential creditor means there is a short-term impact. However, do not let this sway you from taking steps to build or improve your score. 

As long as you handle your debt responsibly, ensure you stay within your limits, and maintain timely payments, your credit standing can continue to show favorable improvement and growth. Remember, you cannot have good or bad credit without any debt.


Having no credit is not the end of the world, as there are multiple lenders who cater specifically to people without credit. Remember to always look at all your options before committing and ensure that you are financially capable of keeping a good payment record.

You could compare this to employment. Offers for employees with experience are almost always higher than the compensation and benefits offered to those without. 

The only way to get yourself into the bracket of higher income or better offers is to gain experience through taking jobs that you may consider less suited to you or possibly offering less compensation than you would ideally desire. 

By completing some time in this position, you immediately open doors to better opportunities moving forward. Credit history is not much different from this. Maintaining a good record and accepting less-than-ideal offers eventually lead to better things.

No-credit car loans are an excellent tool to help you build a credit history and may help you save a fortune on future loans.

Related To This Story

Latest NEWS