Written by: Adam West
Edited by: Lillian Guevara-Castro
Reviewed by: Ashley Fricker
Key Takeaways
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A repossession can stay on your credit reports for up to seven years and drag your credit score down the entire time.
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Some online lending networks specialize in financing bad credit borrowers, including those who have a vehicle repossession on their credit report.
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Borrowers are typically required to have a minimum monthly income to qualify for an online loan.
If you have bad credit and a reposession on your credit report, you’ll have an easier time finding an auto loan if you look online instead of your local bank or credit union. That’s because a traditional financial institution is more likely to reject a bad credit auto loan application than an online lender.
We’ve found some options for you if you need auto financing but your credit score or past car repossession has you worried. Whether you use an auto lender or qualify for a personal loan, you can quickly get the money you need to purchase a vehicle.
And the best part is that you can get started right now. Your loan request takes only minutes to complete, and you could receive a credit decision shortly after.
Auto Loans For Bad Credit and Past Repos
The auto lending networks listed below won’t punish you because of your low credit score and can connect you with a private lender or local dealer that is ready and willing to offer auto financing and same-day funding.
Just submit a simple loan request to any of the networks below and you’ll hear back from a lender or dealer in your area to discuss your car-buying options.
- Network of dealer partners has closed $1 billion in bad credit auto loans
- Specializes in bad credit, no credit, bankruptcy and repossession
- In business since 1999
- Easy, 30-second pre-qualification form
- Bad credit applicants must have $1500/month income to qualify
- See application, terms, and details.
| Interest Rate | In Business Since | Application Length | Reputation Score |
|---|---|---|---|
| 3.99% – 29.99% | 1999 | 3 minutes | 9.5/10 |
2. LendingTree
- Auto loans for purchase, refinance, and lease buyouts
- Nationwide lender network
- Get matched with up to 5 lenders that fit your financial profile
- It only takes a few minutes and is free with no obligation
- See application, terms, and details.
| Interest Rate | In Business Since | Application Length | Reputation Score |
|---|---|---|---|
| Varies | 1998 | 4 minutes | 9.5/10 |
- Free, no-obligation application
- Specializes in auto loans for bankruptcy, bad credit, first-time buyer, and subprime
- Affordable payments and no application fees
- Connects thousands of car buyers with auto financing daily
- See application, terms, and details.
| Interest Rate | In Business Since | Application Length | Reputation Score |
|---|---|---|---|
| Varies | 1994 | 3 minutes | 9.0/10 |
4. RefiJet
- RefiJet helps people lower their monthly auto payment
- Pre-qualifying for a refinance auto loan does not impact your credit score
- Nationwide network of lenders
- Presents you with options from lenders that fit your situation
- See application, terms, and details.
| Interest Rate | In Business Since | Application Length | Reputation Score |
|---|---|---|---|
| Varies | 2016 | 5 minutes | 8.0/10 |
- Loans for new, used, and refinancing
- Queries a national network of lenders
- Bad credit OK
- Get up to 4 offers in minutes
- Receive online loan certificate or check within 24 hours
- See application, terms, and details.
| Interest Rate | In Business Since | Application Length | Reputation Score |
|---|---|---|---|
| Varies | 2003 | 2 minutes | 8.5/10 |
Remember that your car loan options will vary based on your credit profile, down payment, and other factors. Every auto loan offer you receive will have a different interest rate, loan term, and monthly payment obligation. Carefully read every offer to make sure you’re getting the one that best suits your needs and budget.
Personal Loans to Purchase a Vehicle
You can use the proceeds from a personal loan in any way you choose, including to purchase a vehicle — although the interest rate may be much higher. Your single loan request will travel to all of the network’s partner lenders that you qualify to work with. Within seconds, you can receive an email that may contain multiple loan offers from which to choose.
If you receive an offer you like, you can accept the loan terms and have money deposited into your bank account by the next day. You can use that money to purchase your new — or pre-owned — vehicle.
- Personal loans from $500 to $35,000
- All credit types are considered and welcome
- Simple, no credit impact form
- Helping consumers since 2001
- 4.7 out of 5 Trustpilot rating with 2,000+ reviews!
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $35,000 | 5.99% – 35.99% | 60 Days to 72 Months | See representative example |
7. CashUSA.com
- Loans from $500 to $10,000
- Receive a loan decision in minutes
- Get funds directly to your bank account
- Use the loan for any purpose
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $10,000 | 5.99% – 35.99% | 3 to 72 Months | See representative example |
- Personal loans of up to $50,000
- All credit types welcome
- Receive funds in as little as 24 hours
- Fast approval decision
- Safe and secure application
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| Up to $50,000 | As low as 6.40% | Varies | See representative example |
- Loans from $250 to $35,000
- Large lender network
- Fast loan decision
- Use the loan for any purpose
- Funding as soon as one business day, if approved
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $250 to $35,000 | 5.99% – 35.99% | 3 to 72 Months | See representative example |
You don’t need perfect credit to qualify for a personal loan with the networks listed above. In fact, these networks focus on connecting subprime lenders with car buyers who have a bad credit score to find a loan option with a competitive interest rate and monthly payment.
FAQs: What Is a Subprime Auto Loan?
An auto loan for bad credit and car repossession is a way of securing a subprime auto loan despite your poor credit score or previous financial mistakes.
When you attempt to qualify for an auto loan, the lender will require access to your credit report and credit rating. This may scare you if you have credit problems or a past repossession on your credit history.
Lenders often shy away from risky loans. That may mean your application will be denied if you have a history of late payments or loan default.
Thankfully, multiple online lending networks that partner with subprime lenders that specialize in bad credit loan products. These loans can help you purchase a vehicle and help you improve your credit score with on-time repayment.
You may qualify for traditional auto loans or a personal loan that allows you to use your borrowed money in any way you choose. You can expect a poor credit loan to come with a higher interest rate and other fees.
The auto lending networks listed above may also connect you with a local car dealership that can use its finance department connections to find a lender that offers bad credit financing.
With either network option, you can typically get same-day approval and begin shopping for your new car right away. Many auto loans can close the same day you apply, but most personal loan options may require you to wait until the next business day to receive your loan proceeds.
What Credit Score Do I Need to Get an Auto Loan?
Lenders don’t always share the minimum credit score they require to qualify for a bad credit car loan. That’s because your credit rating is only one facet of what lenders look at when determining loan eligibility.
While your credit profile will show lots of important information — including late payments, a car repossession, collection accounts, or a past bankruptcy — it doesn’t tell your entire financial story. To understand this more, consider two different car shoppers.
Borrower 1 has a good credit score. He has no recent credit problems, but his current income is just barely enough to cover his current monthly debt obligations.
Borrower 2 has a previous car repossession on her credit history and a poor credit score. But her recent history shows no late payments, and she has a good income.
When considering these two borrowers, a lender may feel more inclined to offer a car loan to Borrower 2. Although this is still a risky loan, the higher interest rate and other fees make the potential deal more profitable for the lender.
It helps that an auto loan is also a form of secured loan. That means your newly purchased vehicle is collateral to back the loan. If you default on the debt, the lender can repossess your vehicle and sell it to make back some of the money lost on the loan.
With the collateral on your side, you don’t necessarily need perfect credit — or even good credit — to get auto financing. But it is easier to get a new auto loan the longer ago the repo happened.
How Long After a Repo Can I Get a Car Loan?
There’s no rule that states you must wait a certain amount of time after a car repossession to apply for a new car loan, but it is increasingly difficult the more recently the repo occurred. Every lender decides whether to take the risk of granting an auto loan to someone who recently defaulted on a similar loan.
Your lenders will report all of your payment and balance history to at least one credit bureau each month. This information goes straight to your credit report and helps determine your credit score.
A car repossession will remain on your credit report for at least seven years and can initially lower your credit score by as much as 150 points. But as time goes by, newer data has more influence on your credit score than older data. Here is a look at how long some items, including derogatory marks like repossession stay on your credit reports:
| Item Type | Time on Credit Report |
|---|---|
| Soft Credit Report Inquiry | No Report Impact |
| Hard Credit Report Inquiry | 2 Years |
| Delinquent Payment (30+ Days) | 7 Years |
| Vehicle Repossession | 7 Years |
| Defaulted Account | 7 Years |
| Foreclosure | 7 Years |
| Bankruptcy Discharge | 7-10 Years |
When you make on-time payments and keep your balances low on other loans or credit card accounts, you’ll begin to replace your older negative data with fresh, positive data. That’s why it’s recommended that you wait at least six months after a repossession — and make on-time payments to your other accounts in the meantime — before you apply for a new car loan.
This is simply a recommendation and doesn’t guarantee approval. You might find a Buy-Here-Pay-Here lender that will approve your loan application right after a repossession if you have sufficient income to repay the debt. But you may have trouble finding an auto loan for a year or more after a repossession.
It all depends on how much new and positive information you can add to your credit report after the repo occurred.
Can I Remove a Repossession From My Credit?
There are ways to remove a car repossession from your credit report, but none are guaranteed.
In some cases, you can negotiate with the lender to repay all or part of your debt in exchange for removal of the negative data from your credit history.
If you feel that a reported repo is inaccurate on your credit report, you can also hire a credit repair firm or file a dispute yourself with each credit bureau that lists the repossession.
This will trigger an investigation by the credit bureau into the matter. This can take up to 30 days to complete. If the credit bureau rules in your favor, the repossession will be removed from your credit profile, and the negative impact on your credit score will also go away the next time — usually monthly — your scores are recalculated.
Auto Loans For Bad Credit and Repossession Are Available to You Online
You may think you’ll have trouble finding a subprime auto loan whether you’re working directly with a car dealer, a private lender, or a bank or credit union — but that’s not always the case. Just about every car dealership has a finance department that regularly funds loans for buyers who have a low credit score.
But if you don’t want to deal with the hassle of finding a car dealer to work with, you can easily submit a loan request to any of the networks listed above and let each website do the heavy lifting. Before long, you may just find the auto loans for bad credit and repossession that you need.
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