Less than 16% of borrowers have scores of 600 or less, and the average interest rates for this group are 22%, according to Experian data.
Shop around to find the best deal on an auto loan for your budget and credit profile, but be prepared for limited loan options and high costs.
If approved, an auto loan can help improve your credit — provided you keep up with the loan and make on-time payments.
A car loan for bad credit is a risky and challenging endeavor. It's hard to get approved if you have a low credit score. Less than 16% of borrowers with a car loan had have a score of 600 or lower at the beginning of 2026, according to Experian data. Further, you'll likely face prohibitively high interest rates. To compare, the average used car loan rate for someone with a score of 781 or higher is a little over 6%, while a borrower with a score of under 500 gets a rate of almost 22% on average.
For that reason, it's best to work on your credit before you buy a car. But if the purchase can't wait, make sure to look for a competitive auto loan rather than settling for a high-cost offer from a buy-here, pay-here dealer. With a little legwork, you can find the best bad credit car loans for your financial situation.
#less #best #borrowers
Shop around to find the best deal on an auto loan for your budget and credit profile, but be prepared for limited loan options and high costs.
If approved, an auto loan can help improve your credit — provided you keep up with the loan and make on-time payments.
A car loan for bad credit is a risky and challenging endeavor. It's hard to get approved if you have a low credit score. Less than 16% of borrowers with a car loan had have a score of 600 or lower at the beginning of 2026, according to Experian data. Further, you'll likely face prohibitively high interest rates. To compare, the average used car loan rate for someone with a score of 781 or higher is a little over 6%, while a borrower with a score of under 500 gets a rate of almost 22% on average.
For that reason, it's best to work on your credit before you buy a car. But if the purchase can't wait, make sure to look for a competitive auto loan rather than settling for a high-cost offer from a buy-here, pay-here dealer. With a little legwork, you can find the best bad credit car loans for your financial situation.
#less #best #borrowers
2 months ago
