Fast Auto Loans For 2021

Fast Auto Loans
GUIDE
Aaron Crowe
By: Aaron Crowe
Posted: November 8, 2021
Advertiser Disclosure

Computer chip shortages and a lack of used cars for sale have made finding and buying a car difficult, but fast auto loans can help make at least one part of the buying process easy.

An instant auto loan can be approved in minutes, though a decision within 24 hours is more likely. A quick auto loan can give car buyers, including those with bad credit, quick access to the cash they need to show a car dealership they’re serious about buying.

Fast Auto Loans You Can Get Approved For Today

Where can people with poor credit find this type of consumer loan? We recommend three instant auto loan companies that can quickly get you the auto financing you need.

These companies don’t provide the actual loan amounts or loans but are lending networks that connect consumers with a national network of lenders that provide the financing. The lending networks help provide preapproval for the loan by sending your application to multiple direct lenders for consideration.

  • 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
  • Click here for application, terms, and details.
★★★★★

4.9

Overall Rating

Interest Rate In Business Since Application Length Reputation Score
3.99% – 29.99% 1999 3 minutes 9.5/10

Auto Credit Express works with more than 1,000 auto dealers. Buyers are paired with lenders and dealers, and the interest rate on the loan depends on the dealers they’re paired with. It helps with new and used car loans, refinancing, and lease buyouts.

  • Free, no-obligation application
  • Specializes in auto loans for bankruptcy, bad credit, first-time buyer, and subprime
  • Affordable payments and no application fees
  • Same-day approval available
  • Connects 1000’s of car buyers a day with auto financing
  • Click here for application, terms, and details.
★★★★★

4.5

Overall Rating

Interest Rate In Business Since Application Length Reputation Score
Varies 1994 3 minutes 9.0/10

Car.Loan.com specializes in helping people with poor credit find a car loan within 24 hours through its prequalification process. A loan application can be filled out online in a few minutes, giving you fast access to lenders and dealers that can quickly help you get an auto loan.

★★★★

4.0

Overall Rating

Interest Rate In Business Since Application Length Reputation Score
Varies 2003 2 minutes 7.5/10

MyAutoloan.com works with a national network of lenders to give every consumer up to four loan offers in minutes and get cash for the loan in their hands within 24 hours. Its website offers three types of online calculators to see current interest rates. You can also see what your interest rate may be before you apply, and how much the monthly payment will be.

What Is a Fast Auto Loan?

A fast auto loan is a car loan with a fixed interest rate. Most borrowers can complete the car-buying process the same day they apply. 

The borrower will have the same monthly payment for the entire loan term, which can make budgeting easier. The vehicle is the collateral for the secured loan, which usually makes car loans cheaper than other types of loans, such as a personal loan.

Auto loan approval can happen the same day you connect with a lender or an auto dealership through the lending networks we’ve reviewed.

Photo of someone signing auto loan paperwork next to a set of keys.
Fast auto loans are any auto loans that you can apply for and receive on the same day.

It can be difficult to get an auto loan from a traditional bank or credit union if you have bad credit. Lending networks, however, help people find fast auto loans through lenders that specialize in helping people with poor credit.

Loan disclosures will be made throughout the loan process. These include information about the annual percentage rate you’ll pay, how much cash you may need for a down payment, and information about telemarketing calls. 

The dealer, for example, may want to make marketing calls or send you marketing text messages about a pending loan from an online lender. The disclosure will also include how much you’ll have to pay each month on the loan and the loan term.

A fast auto loan isn’t a payday loan or car title loan. Though these types of lenders cater to people with poor credit, a vehicle loan doesn’t require an advance on your paycheck. And it isn’t a title loan that requires putting a lien on the car in exchange for loaning you money.

A car loan provides you with the money you need to buy a vehicle. This type of loan doesn’t pull money from the car’s value to give you cash as auto title loans or refinancing loans do.

How Fast Can You Get Approved For an Auto Loan?

Car buyers can drive off the car lot within a couple of hours of applying for an auto loan. All of the lending networks we recommend state that their online prequalification applications can be completed in a few minutes. And funding can be completed within 24 hours.

This is possible, in part, because many bad credit car dealers have in-house financing teams that allow car shoppers to apply for an instant auto loan at the dealership and get a credit decision in minutes. They can fill out the loan paperwork and drive off in an hour or two after they’re approved for a loan.

The online lending networks help make this process easier by prequalifying applicants. The network usually responds within minutes and connects applicants, including customers with poor or good credit, to lenders and dealers that want to work with them.

The lender will either forward your money or give you a preapproved loan certificate to bring to any dealer you choose to buy a vehicle from.

Or, instead of being sent to direct lenders, the network may connect you with a local car dealer that will give you in-house auto financing that you’re unlikely to find at a bank or credit union.

Can I Get an Auto Loan If I Have Bad Credit?

Yes. Consumers with bad credit are among the main markets lending networks help. They specialize in helping people with low credit scores by quickly finding them car loans and connecting them with multiple lenders that provide the actual loan amounts.

Credit scores range from 300 to 850. A score of 300 to 579 is considered “very poor” and will likely lead to paying a higher interest rate on these kinds of car loans than someone would if they have a decent credit score. Lenders may also consider a “fair” credit score of 580 to 669 low enough to warrant a high interest rate.

FICO Score ranges.

But the good news is that all borrowers are likely to qualify for a car loan after being preapproved. Having a cosigner or making a large down payment isn’t necessary, though either can help make loan qualification easier or lower the payments due each month.

The lender will likely need to access your credit report, which requires a hard credit inquiry that may slightly lower your credit score for up to one year. Making payments on time and in full each month should help raise your credit score.

How Much Cash Will I Need For a Down Payment?

A poor credit history may still lead to a loan offer from one of the lending networks we recommend. But if your credit score is below 400, you may need to improve your application approval odds. 

One way is to make a down payment on the car you want to finance. It shows that you’re taking on some of the risk from the lender in the bad credit loan. Putting some of your own money down can give you an incentive to pay off the loan.

The more money you put down, the less money you’ll need to borrow, and your loan-to-value ratio, or LTV, improves. This ratio calculates how much money you’re borrowing compared with the current value of the vehicle you’re buying. 

Example of LTV for an auto loan.

A $10,000 down payment on a $20,000 car has a 50% LTV. Cars usually depreciate as soon as the new owner drives away, so lenders often don’t want to finance 100% of a car’s cost. A low LTV is preferable. 

That doesn’t mean you need to come up with a 50% down payment, even if you have a low credit score. Each lender has its own criteria. 

Cash or a check will likely be required for a down payment, though a debit card will probably work. Most lenders will accept a credit card for a down payment. 

Expect to pay at least 10% down, which is $2,000 for a $20,000 car. If you don’t have a high credit score, expect to make a bigger down payment. But even a large down payment won’t offset having bad credit. 

The lender will still review your credit history, and you may have to take other measures, such as getting a cosigner or trading in a car, to receive loan approval. If you were a plaintiff in a lawsuit regarding past debts, you should get those resolved before applying for a loan.

What Interest Rate Will I Pay?

A report by Experian found that borrowers with credit scores below 600 averaged auto loan interest rates of 11.03% to 20.58%. Those with scores a little higher, at 601-660, saw rates drop to between 6.6% and 10.49%.

Average Auto Loan Interest Rates, 2021 Experian Report Data.

Someone with bad credit may be charged a higher interest rate of up to almost 30% for an auto loan. Auto dealers you’re paired with may offer people with credit problems lower rates for auto installment loans.

And as we mentioned earlier, a big down payment, cosigner, or trade-in vehicle can help lower the interest rate and ensure auto loan approval.

Bad credit loans charge high interest rates to offset some of the risk lenders see in such loans. A borrower with good credit is less likely to default on his or her payments and is more likely to get a better interest rate.

Your Best Options For Fast Auto Loans For Bad Credit

Fast auto loans can help you buy a car quickly, which can be especially important if you recently totaled your car and need one immediately to get to work and get on with your life. 

You may still have difficulty finding the exact car you want in a tough car buying marketplace due to computer chip shortages and other problems, but at least you’ll have the money available when you do find a car you want to buy.

Be sure to shop around for the best loan term since you’re likely to be making car payments for a few years that you’ll want to be able to afford.

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