Can You Get an Auto Loan with Bad Credit?

Yes — you can get an auto loan with bad credit. Many lenders work with borrowers across a wide range of credit scores, but the terms of the loan will usually be less favorable.

Quick answer

Approval is possible with bad credit, but expect higher interest rates, larger down payments, and stricter requirements.

What counts as bad credit?

Generally, a credit score below 620 is considered subprime by most lenders. The lower your score, the higher the risk in the lender’s eyes.

What to expect with bad credit

• Higher interest rates
• Larger down payment requirements
• Lower loan approval amounts
• Possible need for a co-signer

How to improve your chances

1. Know your credit score

Before applying, it’s important to understand where you stand. You can check your credit score to see what lenders will see.

2. Save for a down payment

A larger down payment reduces the lender’s risk and can improve your approval odds.

3. Lower your debt-to-income ratio

Lenders want to see that you can afford the payment. Reducing debt can help.

If you’re unsure what lenders consider acceptable, read What Is a Good Debt-to-Income Ratio? .

Should you wait or apply now?

If you need a car immediately, applying may still make sense. But if you can improve your credit first, you may qualify for better terms and save money over time. Why Was My Auto Loan Denied?

Simple takeaway

• Yes, you can get an auto loan with bad credit
• Expect higher costs and stricter terms
• Improving your credit can save money long-term

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