Second Chance Auto Loan

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Have bad credit, and need to buy a car? In an ideal world, it’d be possible to wait until your credit was repaired before applying for an auto loan. But when you need to drive to and from work each day, sometimes an automobile purchase just cannot wait. In a situation like that, you need a second chance auto loan.

You can view recommended second chance auto lenders in our chart below, or you can scroll down to read more about second chance auto loans.

Up to $50,000
Individual rates
Bad credit
Loan Terms
6 months to 6 years
Up to $35,000
Starting at 6.90%
Bad credit
Loan Terms
2 months to 7 years
Use car as collateral
Up to $10,000
Individual rates
Bad credit
Loan Terms
3 months to 6 years
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Do Vehicle Loans for Bad Credit Exist?

It is possible to get a bad credit auto loan. While your credit score is important, it is not the only factor which is used to determine whether you qualify for a vehicle loan. Second chance auto lenders also take a look at your income and your ability to pay back a loan.

How Do You Apply for a Second Chance Car Loan?

You can apply quickly and easily for a second chance car loan online (more on why you should consider applying online rather than in person in the next section). To submit your application and be approved successfully, you will need the following:

  • Proof of identity and residence.
  • Proof of insurance.
  • Documents to verify your income.
  • Information on the vehicle you wish to finance.

You will notice that many second chance auto loans are secured to collateral (the car itself, in most cases). But this is not universal. There are unsecured bad credit car loans out there. We point you in the direction of some lenders which offer these in our recommendations chart.

Where Can You Apply for Second Chance Auto Loans?

Instead of searching for “bad credit car loans near me,” you might instead want to consider looking for a second chance auto loan online, as previously mentioned. Not only are lenders online typically more flexible when it comes to credit scores and application approval, but they also are less likely to penalize you for paying off the loan early. You also have more freedom when it comes to where you choose to purchase your vehicle when you apply for a loan online rather than using a “buy here, pay here” dealership in your area.

To help you find a second chance auto loan, we have created a list of vetted lenders for you to consider. The lenders we recommend:

  • Specialize in lending to customers without perfect credit scores, including those with their credit, poor credit or no credit.
  • Run soft credit checks and follow responsible lending practices.
  • Offer competitive interest rates to borrowers with a wide range of credit scores.
  • Are fair and transparent in the way that they treat customers.
  • Are licensed to operate in the states where they offer loans.

Quick Tip: There is Still Time to Raise Your Credit Score

Even if you will be applying for your second chance auto loan very soon, you still may be able to raise your credit score in time to qualify for a more competitive interest rate. Here are some steps to take:

  • Reduce your credit utilization.
  • Catch up on late payments.
  • Sign up for Experian Boost.
  • Contest errors on your credit reports.
  • Ask creditors to forgive one-time mistakes.
  • Keep up with your current payments.

You may be surprised by how much you can raise your score in a limited period of time.

Apply Now for a Second Chance Auto Loan

It only takes a few minutes to apply for a second chance auto loan online. To get started now, click on any of the links in the chart on this page to visit one of our recommended second chance lenders.