4 Best Second Chance Car Loans For Bad Credit

Auto Loans

Looking for a car loan but have a rough credit history? Thank goodness for second chances. Second chance auto loans for bad credit are exactly what they sound like.

You may have heard of second chance banking to help customers who have had financial troubles in the past. It’s the same concept. These auto loans are geared toward borrowers with subprime credit. The interest rates are higher than auto loans for borrowers with great credit. However, there’s less likelihood you’ll get denied.

How Second Chance Car Loans For Bad Credit Work

Second chance car loans allow you to get a fresh chance at financing a vehicle without having to jump through a ton of hoops. In fact, you can even handle the process of obtaining a loan completely online.

Use a second chance auto loan lender or dealer network to fill out a simple application. After you’ve filled out the necessary information, you’ll receive an offer from local dealers, including an interest rate and desired loan amount.

Some dealer networks will send you funds, while others will give you a certificate that you can take to the dealer and use just like cash. Applying for a second chance car loan for bad credit online streamlines the process to help you get a car note much faster.

If you’re wondering where to start looking for a bad credit auto loan, here are our top 4 most credible recommendations.

Auto Credit Express

LetMeBank’s rating
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  • Loan Amount
    $20,000 – $45,000
  • APR
    3.99% – 29.99%
  • Loan Term

Features & Benefits

  • Minimum Credit Score: 400
  • Helps car buyers who have low credit scores, bankruptcies, or repossessions.
  • Allows cosigners

Auto Credit Express has been issuing bad credit auto loans since 1999. They work with a network of dealer partners to help you find an auto loan quickly. You can find auto financing even if you’ve filed for bankruptcy in the past or have no credit history.

To qualify, you must have a full-time job and earn at least $1,500 per month. You can submit a prequalification form online in as little as 30 seconds. Same day approval is available for a loan.

Keep in mind that Auto Credit Express will match you with a local lender after shopping around to help you find the best financing deal. They also won’t work with any private sellers, so you must consider financing a car from a dealer or legitimate car lot.


LetMeBank’s rating
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  • Loan Amount
    $8,000 – $100,000
  • APR
    3.69 – 21.00%
  • Loan Term
    24 – 72 months

Features & Benefits

  • Minimum Credit Score: 575
  • Up to 4 lender matches with a soft credit check
  • Get approved within as little as 30 seconds

MyAutoLoan.com offers bad credit auto loans for both used and new vehicles. This online lending network connects you with local dealers so you can get offers quickly.

They also have a free interest-rate estimate feature so you can get a clear view of what your interest rate might be given your current credit score.

Applying to finance a car with bad credit on the site is easy. Just select the type of loan you’re looking for, then complete a quick and secure online application. It generally takes less than a few minutes to receive a decision and compare offers for an auto loan.


LetMeBank’s rating
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  • Loan Amount
    $7,500 – $45,000
  • APR
    3.0 – 25.00%
  • Loan Term
    36 – 72 months

Features & Benefits

  • Help individuals with little to no credit
  • No monthly income requirements
  • Get approved in less than 30 minutes

Car.Loan.com offers fast and easy approvals if you’re looking to finance a car with bad credit. They’ve teamed up with the nation’s largest network of auto dealers who are trained in special finance.

The online application only takes 3 minutes to complete and same-day approval is available. There is no minimum credit score requirement. However, each lender has their own requirements, so your dealer options may vary.

Still, this is a solid option to consider since Car.Loan.com is geared toward borrowers with bad credit or no credit history.

Should I Get a Second Chance Car Loan For Bad Credit?

While most people will qualify for an auto loan given these options mentioned above, you need to make sure you’re confident about your decision. Here are a few key questions to ask before getting a second chance car loan.

Can I afford it?

The national average auto loan rate in the U.S. on a 60-month loan term is 5.27%. A bad credit auto loan would likely have a higher interest rate since you’d be considered a riskier borrower. Be sure to consider how your monthly car note payment would factor into your budget. Also, pay attention to your term and interest rate. A longer-term may lower your monthly payment, but you’d also pay more in interest over time. If you can afford a slightly shorter term, consider choosing this option, as it could save you money.

Is my income stable?

Second chance car loans offer you another opportunity to build a positive credit history by repaying your loan on-time. Having a steady income is crucial in terms of being able to pay your auto loan off in a timely manner. Most companies have minimum income requirements in place, and this is for your benefit. The average monthly car loan payment is $550 for new vehicles, $393 for used and $452 for leased.

However, keep in mind that only you know the more detailed aspects of your budget, including expenses that you can and can’t afford.

Can I put anything down?

While making a down payment is not a hard requirement with some auto financing options mentioned above, it’s worth considering. Putting some money down upfront lowers the overall amount of your loan. When you borrow less, it also reduces the amount you’ll pay in interest, which can help you pay the loan off faster.

For example, if you need a loan for a $10,000 vehicle but can put $1,000 down, you’ll only borrow $9,000. In turn, you won’t have to pay interest on an additional $1,000 as you repay the loan.

Does the loan length seem reasonable given the lifespan of the car?

All cars depreciate in value over time. This means that a 6-year loan on a 12-year-old car that may not last another 5 years is not really a good deal. By the time you pay off your loan, you’ll likely need to finance another vehicle and start all over again.

Luckily, companies like MyAutoLoan.com do put a limit on how old your car can be along with the number of miles when you decide to finance it. This is a blessing in disguise, seeing as how no one wants to finance a car that will die out before the loan is paid off.


Getting a second chance car loan for bad credit is easier than ever. Using online dealer network websites can help accelerate the process of finding a lender and getting approved. You can often qualify with a credit score in the low 500s so long as you have a steady income and earn a minimum of $1,500 – $2,000 per month.

Everyone deserves a second chance, especially if you’re looking to rebuild your credit and maintain a safe mode of transportation. Still, second chance car loans can be expensive, so it’s important to make sure you compare all your options and run the numbers early on before making your final decision.