The Best Car Loans by Credit Score, Rates, and Lenders in 2026

The best car loan for you will depend entirely on your credit profile, income, and other financial factors. No one auto lender is the best choice for everyone. Your annual percentage rate (APR) will vary considerably depending on the lender and credit tier, as well as factors like down payment and loan term.

Consumers Credit Union and Bank of America are two of the best lenders, but credit unions like PenFed and online lenders like myAutoloan also offer strong options to borrowers with a range of circumstances.

Here’s what you need to know about finding the best auto loan for your needs, including pitfalls to watch out for and how to qualify for the best rate.

The Best Auto Lenders at a Glance

Many strong choices exist for car loans. Here are our top picks:

• Excellent credit: Consumers Credit Union

• Poor credit: Carvana

• Traditional bank: Bank of America

• Online bank: Capital One Auto Finance

• New car loans: PenFed Credit Union

• Used car loans: Consumers Credit Union

Best Car Loans by Credit Score

Your credit score makes a significant difference to the total cost of your loan because it plays a major role in determining your interest rate. The lower your rate, the lower your overall costs. 

Here are the best auto loan selections by credit tier. The provided examples are for a 60-month $35,000 new car loan. See how your credit score can affect your monthly payments and total interest.

Credit Score Tier	Lender	Example APR	Monthly Payment	Total Interest
800+ (Excellent)	Consumers Credit Union (CCU)	3.99%	$644	$3,665
740–799 (Very Good)	Alliant Credit Union	6.70%	$688	$6,285
670–739 (Good)	myAutoloan	9.83%	$740	$9,443
580–669 (Fair)	Westlake Financial	13.22%	$800	$13,018
<580 (Poor)	Carvana	15.81%	$847	$15,856

Here’s an overview of the best lending option for each credit score tier.

Consumers Credit Union (CCU): Best for borrowers with excellent credit

• APR range: 3.99%–10.49%

• Loan amounts: Not advertised

• Min. credit score: Not advertised

Consumers Credit Union (CCU) offers competitive auto loan rates, plus a 0.50% rate discount if you use its car buying service. It offers flexible loan terms of up to 84 months and exclusive perks for working with partners, like TrueCar. CCU allows you to check your eligibility and apply for a loan online.

Alliant Credit Union: Best for borrowers with very good credit

• APR range: 5.14%–8.39%

• Loan amounts: Not advertised

• Min. credit score: Not advertised

Alliant Credit Union offers reasonable rates, a simple loan application, and a perks program, plus debt protection and no prepayment penalty. Alliant says that same-day loan approval can occur for some, and it has specialists to help walk customers through the process of application and approval.

myAutoloan: Best for borrowers with good credit

• APR range: 5.50%–8.59%

• Loan amounts: $8,000 minimum

• Min. credit score: 600

myAutoloan is an online marketplace for car loans that can provide quick prequalification and easy-to-meet minimum standards. It offers several loan types, including refinancing and buying from private parties.

Westlake Financial: Best for borrowers with fair credit

• APR range: 4.99%–29.99%

• Loan amounts:  $5,000–$30,000

• Min. credit score: Not advertised

Westlake Financial offers competitive rates and a simple prequalification process to borrowers with a range of credit histories. Westlake advertises 24/7 instant credit approval, but it has a smaller loan amount range capped at $30,000.

Carvana: Best for borrowers with poor credit

• APR range: 6.85%–16.89%

• Loan amounts: Not advertised

• Min. credit score: 300

Carvana offers a “99% approval rate” to borrowers and provides delivery services and soft-pull preapprovals, making it a good choice for vehicle buyers with poor credit. It has a well-designed and easy-to-use website that makes the application process go smoothly.

Average Car Loan Rates by Credit Score

Auto loan interest rates vary considerably depending on the borrower’s credit score. People with very good or excellent credit typically have APRs between 5% and 7%, while those with lower credit scores can face APRs of 15% or higher. Rates for new car loans are also typically lower than those for used-car loans.

Here’s an overview of average APR rates by credit tier and loan type, based on data from Experian.^[1] We’ve also calculated estimated costs for a 60-month, $35,000 loan for each rate shown below.

Credit Score	New Car Loan APR	Used Car Loan APR	Estimated Monthly Payment
800+	5.18%	6.82%	$663–$690
740–799	6.70%	9.06%	$688–$728
670–739	9.83%	13.74%	$741–$810
580–669	13.22%	18.99%	$800–$908
<580	15.81%	21.58%	$848–$958

Best Car Loans by Lender Type

The best lender for you will depend on a number of factors, most importantly including your financial situation and priorities. Traditional banks, credit unions, and online lenders usually offer lower interest rates and straightforward financing.

Subprime lenders cater to borrowers with bad credit, so they typically offer higher APRs than other lenders. Dealerships offer a range of interest rates, including promotional 0% financing.

Here’s an overview of how typical APRs, loan amounts, credit requirements, and approval times vary across lender types.

Lender Type	Typical APRs	Typical Loan Amounts	Minimum Credit Score	Approval Time	Best For
Traditional banks	6.17%–18.65%	$7,500 and higher	500–600 (may depend on the bank)	1 day to 2 weeks	Stability and in-person support for high-credit borrowers
Credit unions	6.26%–13.58%	$5,000–$150,000	580–600	1 day to 2 weeks	Personal, flexible loan process for credit union members
Online lenders	5.50%–8.59%	$5,000–$100,000	600 (some may go lower)	Same day to 3 days	Fast approvals and a fully online process
Subprime lenders	17%–23.53%	$5,000–$30,000	300 and up	Same day	Low-credit borrowers who may not qualify elsewhere
Dealer financing	4.95%–18.31%	$25,000–$40,000	300 and up (it depends on the dealership)	Same day	Convenience and promotional rates

Below, you can see the best choice for each popular type of auto lender.

Best traditional bank for auto loans: Bank of America

• APR range: 5.29% and up 

• Loan amounts: $7,500 and up

• Min. credit score: Not advertised

Bank of America offers competitive rates for vehicle purchases, including electric vehicles and, sometimes, charging stations. You can shop for vehicles from a wide range of sellers, and manage your loan easily online.

Best credit union for auto loans: PenFed

• APR range: 3.39%–6.24%

• Loan amounts: Up to $150,000

• Min. credit score: Not advertised

Though PenFed doesn’t advertise a minimum credit score, most credit unions will accept auto loan borrowers with scores as low as 600. PenFed offers car loans with up to 125% financing with low rates, extended manufacturer warranties, and debt protection.

Best online lender for auto loans: Capital One Auto Finance

• APR range: 4.91%–6.09% (and up)

• Loan amounts: $100,000 maximum

• Min. credit score: Not advertised

Capital One takes several factors into consideration when determining approval and rates for car loans, including credit, income, down payment, and loan amount. Plus, a simple prequalification has no effect on your credit score.

Best subprime auto loan lender: Carvana

• APR range: Not advertised

• Loan amounts: Not specified

• Min. credit score: 300

Carvana advertises a 99% approval rate and works with borrowers who have a prior bankruptcy. You can pick up your new car from a Car Vending Machine, or the dealer can deliver it to your door.

Best New Car vs. Used Car Loans

Though new cars have never had a previous owner, used cars have had at least one. Lenders typically offer lower interest rates for new auto loans because it’s easier to determine a newer vehicle’s value, and used cars have less predictable risks.

Some borrowers prefer a new car because of the warranty and added reliability. Auto loans for used vehicles often have higher interest rates, but used cars also have lower costs overall and slower depreciation, which is desirable to some borrowers.

Here’s an overview of how costs for a $35,000 auto loan for a new car compare to a $25,000 used auto loan, using national average interest rates and term lengths. The total cost column below reflects costs for five years.

Vehicle Type	Average APR	Loan Amount	Est. Monthly Payment	Total Cost
New	6.1%	$35,000	$625	$41,286
Used	16.4%	$25,000	$577	$38,106

Here are our picks for the best loan providers for new and used car loans.

PenFed Credit Union: Best for new car loans

• APR range: 3.39%–5.74%

• Loan amounts: $15,000–$150,000

• Min. credit score: 600

PenFed offers flexible loan terms from 36 to 84 months for new vehicles. It doesn’t charge early payoff fees either. And you can get pre-approval without affecting your credit score.

Consumers Credit Union: Best for used car loans

• APR range: 3.99%–10.49%

• Loan amounts: $10,000

• Min. credit score:

Consumer Credit Union offers low rates, plus the ability to get a $350 credit. Perks include a 10-day grace period before charging late fees. Qualified borrowers can even skip up to two payments per year.

How to Qualify for the Best Car Loan Rates

Many factors influence your car loan rates, including your credit score, income, debt, loan term, loan amount, down payment, and type of vehicle. A higher credit score, income, and down payment combined with low debts, a newer vehicle, and shorter terms usually earn lower interest rates and vice versa.

Shopping around takes time, but it’s worth it. Small differences in your APR can save you thousands. And, getting pre-approval puts you in control when negotiating.

Follow these steps to qualify for the best car loan rate:

1. Check your credit and improve it if possible. You can typically improve your credit score by making on-time payments and lowering or paying off your credit card debt.

2. Set a realistic budget. Calculate how much you can realistically pay each month for your car loan, making sure to also consider maintenance and insurance costs.

3. Save for a larger down payment. If you pay a higher down payment at the start, you won’t need to borrow as much money and will pay lower monthly payments.

4. Compare interest rates from multiple lenders. Rates vary by lender, so it’s important to shop around for the best choice for your auto loan needs.

5. Get your pre-approval. Securing pre-approval can help you lock in an interest rate.

6. Negotiate at the dealership. Try to negotiate for a lower interest rate, as dealers may not initially be offering you the lowest rate you can qualify for.

7. Buy your new car. Once you’ve squared away your auto loan and vehicle details, go ahead and buy your new car.

Best Car Loans FAQs