The Best Auto Loans for Fair Credit: Top Options for 580 – 669 Credit Scores in 2025
You can still qualify for a car loan if you have fair credit, which is a credit score between 580 and 669. Having fair credit simply means that your credit has room for improvement, but it doesn’t mean you’re ineligible to get the car you need.
We’ve found that several lenders offer more lenient underwriting practices and consider more than just your credit score when deciding whether or not to offer you a loan. If you are looking for the best auto loans for fair credit, we recommend four lenders below. We also answer common questions, like how to get the best rate if you have fair credit.
Here are the four best auto loan lenders for borrowers with fair credit. We chose these lenders based on numerous criteria, including that every company accepted lower credit scores than typical lenders. We also assessed their availability nationwide, the average auto loan interest rates, and the ease of applying.
Carvana
Best for Used Cars
Why Carvana is one of the best
We chose Carvana as a top lender for borrowers with fair credit because it states it welcomes all credit types. The company disrupts the car industry by eliminating traditional dealerships and offering a fully online experience, including its signature car vending machines.
By streamlining the process from browsing to financing to delivery, Carvana makes car buying more accessible and convenient for consumers who prefer a digital-first approach.
- Accepts all credit types
- Apply 100% online
- Option to have Carvana drop off your car at your home
- Cars have a seven-day money-back guarantee
- You can only buy Carvana cars
- Not in Alaska or Hawaii
- Higher rates than other lenders
| Min. credit score | None |
| Rates (APR) | 7.95% – 27.95% |
| Loan amounts | Starts at $1,000 |
| Term lengths | 12 – 72 months |
myAutoLoan
Best for Comparison Shopping
Why myAutoLoan is one of the best
We chose myAutoLoan because the company allows you to compare up to four lending offers at once, making it easier to find competitive rates. By providing multiple options upfront, MyAutoLoan can help you save time and money while ensuring you secure the best possible financing for your needs.
- Compare multiple lenders at once
- Flexible terms
- Accepts credit scores as low as 600
- Fast funding
- Some lending partners conduct a hard credit check
- Not available in Alaska or Hawaii
- Some customers report an uptick in phone calls after applying
| Min. credit score | 600 |
| Rates (APR) | Starting at 6.54% for used car loans and 6.94% for new car loans |
| Loan amounts | $8,000 – $100,000 |
| Term lengths | 24 – 72 months |
Autopay
Best for Flexible Qualification
Why Autopay is one of the best
We chose Autopay because it has more accessible qualification requirements than many competitors.
With a minimum credit score of 600 and an annual income requirement of just $24,000, Autopay provides opportunities to those who may struggle to qualify elsewhere. Its marketplace model also allows borrowers to compare multiple offers, increasing the chances of finding competitive rates and terms.
- Prequalify with a soft pull
- Marketplace gives several options
- Cosigners welcome
- Convenient online application process
- Lack of transparency regarding interest rates and fees
- Mixed reviews about customer service and the loan process
| Min. credit score | 600 |
| Rates (APR) | 4.67% – 17.99% |
| Loan amounts | $2,500 – $100,000 |
| Term lengths | 24 – 84 months |
Navy Federal Credit Union
Best for Military Members
Why Navy Federal is one of the best
We chose Navy Federal Credit Union for its excellent reputation and thousands of positive customer reviews. It also offers some of the lowest interest rates on this list of lenders, making it a strong choice for eligible borrowers looking to save on financing costs.
As a member-focused institution, Navy Federal provides exclusive benefits and personalized service to military members, veterans, and their families.
- World’s largest credit union with over $180 billion in assets
- Get decisions in seconds
- Preapprovals are good for 90 days, giving you time to shop
- Only available to military members and their families
- Funds are mailed as a physical check rather than sent electronically or paid directly to the dealer
| Min. credit score | No set credit score requirement |
| Rates (APR) | Starting at 4.09% for new vehicles financed over 36 months |
| Loan amounts | Up to 125% of the car’s value |
| Term lengths | Up to 96 months |
Bonus lender tip: Visit your local credit union
In addition to the lenders mentioned above, consider applying for a car loan at your local credit union. According to Q4 2024 data from the National Credit Union Administration, new car loans from credit unions averaged 6.03% interest, while new car loans from banks averaged 7.53% for 60-month loans.
Plus, credit unions tend to be local, so you can talk to a bank manager face to face and discuss the potential for an auto loan in person.
What’s the minimum credit score you need for an auto loan?
The minimum credit score you need for a car loan depends on the lender. Some lenders only serve customers who have excellent credit, while others cater to customers who are rebuilding their credit. On average, lenders prefer that you have a credit score of 600 or above for an auto loan.
Many lenders consider more factors than your credit score, such as your income, employment history, and debt-to-income ratio.
How does a fair credit score affect your auto loan terms?
When you have a fair credit score, lenders typically offer you a higher interest rate than they would if you have a good credit score. This can mean paying thousands of dollars more for your car over the life of your loan.
Here is an example using our auto loan calculator:
- Someone with excellent credit might be able to borrow $20,000 for a car loan over five years at 5% interest. Their monthly payment would be $377, and they would pay $2,645 in interest total.
- Someone with a fair credit score might get 10% interest for the same $20,000 car over five years. At that interest rate, their monthly payment would be $425, and they would pay $5,496 in interest over the life of the loan.
This is why it’s a good idea to improve your credit before getting a car loan or refinance as soon as possible after getting one.
If you have some time before you need to purchase a new car, attempt to take steps to improve your credit score somewhat. However, if this is not an option, trying to put down a larger down payment is your next best option as more equity can help with your interest rate. Finally, checking around with multiple lenders to find the best interest rate and terms is always important.
Should I buy a new or used car if I have a fair credit score?
Used cars are typically less expensive than new cars. Plus, new cars often depreciate 20% within the first year of ownership, according to Kelley Blue Book. For that reason, it’s often better to buy a used car when you have fair credit.
However, the interest rate on used cars is typically a couple of percentage points higher than you can get on a new car. So depending on price, it may be worth at least evaluating a comparative new car before deciding. There are also other factors to consider, as well, such as warranties on new cars that used cars don’t have.
Tips for getting the best deal on an auto loan if you have fair credit
If you have fair credit and need to buy a car, here are our tips on getting the best deal and improving your credit score.
Comparison shop
Take the time to comparison shop for the best car loan rate. Use a loan comparison website—we like Autopay and myAutoLoan—to see offers from more than one lender and choose the best one for you. When comparing lenders, consider the interest rate as well as the terms, conditions, and fees they charge.
Improve your credit score
Consumer Reports advises spending time improving your credit score to get better interest rates on auto loans. The best way to improve your credit score is to settle adverse accounts and pay down your debt. Even a slight increase in credit score can help you qualify for better auto loan terms.
Add a cosigner
If you have a trusted friend or family member with a stable job history and good credit, you can ask them to be your cosigner. Having a cosigner can help you qualify for a lower interest rate, but make sure you make your payments on time; not doing so can hurt your cosigner’s credit.
Consider new and used cars
As we mentioned, it may make more sense to purchase a used car rather than a new one. Used cars tend to be more affordable and don’t depreciate as fast as new cars.
However, be mindful that interest rates are usually higher on used cars, so it’s important to crunch the numbers. You may find that the payment on a brand-new vehicle is lower than on a used vehicle due to the interest rate.
Negotiate your terms
Don’t accept your first lender offer. You can negotiate with your lenders, especially if you have a lower offer from a different lender. And don’t accept the first offer on the price of your car. You can negotiate with the dealer or private owner of the vehicle you want.
Make a larger down payment
If you can make a larger down payment, your payments will be lower, and you might even qualify for a better interest rate.
Remember: Auto loans can absolutely help improve your credit. When you initially take one out, it will pull your credit score down somewhat due to more debt and new debt.
However, after a few months of on-time payments, you will start to see your credit score increase, and this will continue as you make these payments and further pay down your loan.
Recap of the best auto loans for fair credit
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