The 8 Best Guaranteed Auto Loans for Bad Credit no Money Down

You can all agree with me that getting a loan can be a challenging task, especially if you have bad credit, and it can hinder you from doing what you had planned. Although having a bad credit doesn’t mean that you are on the lower end of your incomes as individuals with low incomes have low credit. If you earn a low income and have bad credit at times, it is a financial challenge, and it can be hard getting an auto loan. Although it might seem a dead end to many consumers but no need to worry as you are in the right place. In this article, I’ll guide you through guaranteed auto loans for bad credit, no money down to finance your business aspirations or get a car.

At the age of 18 years and make a living for at least $1500 per month, then there is nothing to hinder you from not qualifying for auto financing. Most of the loan lenders tend to blame desperate families and emphasize mostly on the records, and it can impact their projects that will enhance their future. There are various lenders out there, and without thorough research, you might end up giving up or getting one with a preliminary agreement. Browsing on the internet can be a tough ride to get to since there are many ads and reviews concerning the lenders, but some look unprofessional and random stuff made up. There are various deals on buying a car with bad credit and money down, but I’ll talk more about it later.

With the research, it reduces the burden of getting an honest lender and makes the process more comfortable, but it also helps you get the ideal lender at an affordable rate.  You can also get a good deal on a flexible auto loan, and you aren’t entangled to anything that you don’t know. In this article, I’ll guide you through the best-guaranteed auto loans for bad credit with no money down and each company’s pros and cons. You get to know how much you can get one to apply for it, and we shall answer some of the frequently asked questions. Let’s dive in.

How does bad credit impact an auto-loan application?

Guaranteed Auto Loans for Bad Credit no Money Down
Getting a car in this current economy can be a tough decision to make, and it can be tricky getting an affordable car. For instance, a brand new car can go for over $20,000 and getting a 2nd hand; you can get one not below than $15,000, so you need to be financially stable to either one of them.

With these prices in mind and you have less, that where auto loans come in. To aid in making the car affordable, you can apply for an auto loan, and they are now extended to six to eight years so you can pay it up quickly.

Having bad credit will hit you when searching for the ideal lender, and most of them consider lousy risk as a high credit risk. If you have a poor credit record, you are considered a defaulter, in simple terms, you’ll stop paying the loan back.

Most lenders will shun away from individuals with bad credit records and go for less risky customers. With the limitation in place at big banks, it will force you to go to other lenders such as small credit unions, expensive dealer financers, or subprime specialists; thus, you won’t get the ideal amount that you need.

Having a healthy monthly income doesn’t make you an exceptional at all. If you have poor credit records, the lender will limit the amount that can grant you. The bank won’t be willing to give a massive amount of money even if your income is quite promising, and if you have a low-income, you are likely to get a jumbo loan offer.

If you manage to get a lender to offer you an auto loan, beware of the interest rate, you are likely to charge. If you compare most of the auto loan lenders, they tend to charge high interest to bad creditors than those with good credit scores and done to manage the losses it might encounter. As you explore the various lenders, check out the rates, and do the math and compare.

Should I use a cosigner if on bad credit?

Even though we’ll talk about guaranteed auto loans for bad credits with no money down in this article, you can still decide to pay something to lower the loan payment. It isn’t stated anywhere that you need to pay a certain amount as a down payment, and you can contribute anything.

Paying a down payment or even trade-in your vehicle can help lower your loan to value ratio and improve your chances of getting an approval. To increase your chances of getting the lender’s approval, you can get good credit from a friend or family member, be them consigning your loan.

For status, the cosigner is an individual with a good credit score that agrees to take responsibility for the debt if the borrower defaults. With a reasonable credit risk to the lenders, you are less credit risk, and you can pay up the deficit to keep a good credit record.

It reduces the risk of the loan with a consigner, and most of the lenders will approve your loan application. Beware most of the lenders tend to approach the consigner most of the time, and if you default for more than thirty days, then the consigner can be held accountable.


  • You have a high chance of your loan getting approved.
  • You might get a lower interest rate as compared when you solo.
  • You can get an offer of a jumbo loan or credit line.


  • The cosigner is held accountable for the loan
  • It can ruin the cosigner credit record is the borrower defaults.
  • If you apply for credit in the future, the lenders might consider the consigned loans.

Top 8 guaranteed auto loans for bad credit providers

In this section, I’ll guide you through the ideal lenders that look beyond your credit score. Majority of the lenders are car dealers, online platforms among others that find ways to virtually guarantee an auto loan for an applicant.let’s check them out, and you can leave your opinions concerning their services if you have applied their once.

1) Auto Credit Express

Launched in 1999, Auto Credit Express is a well-established company specializing in bad credit, no credit, bankruptcy, and repossession. Since it is an online establishment, it has no minimum credit score requirement, but it requires a minimum monthly income of $1,500.

It has over 1,200 dealerships nationwide; thus, you get smooth services, and it has a rating of A+ awarded by Better Business Bureau. It is easy to apply as you get a pre-qualification form to fill in the details that take you approximately to fill it out.

Once you have applied, you get a nearby dealership with the best pre-approved loan match, and then you get a call from the company. On the same day, you get to meet with their finance expert to review the loan options, and you can get the financing that day.

2) myAutoloan

At myAutoloan, an online lending network, it providers with borrowers with up to four financing offers with a single application. It has various partnerships with various companies; hence you can work with multiple credit types, especially those with bad credit.

The interest rates vary for each of the offers, and you shall receive an online loan certificate or a check within 24hours.  It has an experience of over ten years, earning itself an A+ rating from Better Business Bureau.

3) Car Loan Auto loan

Another online lending network, founded in 1994, Car loan has a vast network partner that can connect the browsers with any credit type to auto financing. The company specializes in auto loans for bankruptcy, bad credit, subprime, and first-time buyer.

The unique thing about them is that the payments are affordable, with no hidden additional fees and no application fees. Also, the approval is on the same day, so no deals, and you can continue with your various activities. Although there are no minimum requirements, some of the partners can set their needs.

4) Capital One

I am sure you have heard of Capital One; it is among the states’ major banks that offer various services to its customers. Some of the services that you can get are new and used auto loans, and the requirements are strict and demanding.

The minimum credit score for approval is 500, and they shall check all your credit profile, income, any current debt, and employment history. At Capital one, a borrower can pre-qualify financing with a soft credit inquiry that won’t affect your credit score. You can see the monthly payments, APRs, and other summaries for selected vehicles.

5) CarFinance

It is a direct auto lender that offers loans for new purchases and refinancing. With just a minimum of 525 credit score, you get to go to the dealer and choose the vehicle. The cars that you can choose is a passenger vehicle or light truck for personal use only, and it must be eight years old with a milage of 100,000 miles.

The downside to this company is that not all vehicles are eligible to pick, and you have to choose between individual brands. You can’t get Daewoo, Hummer, Isuzu, Mercury, Oldsmobile, Pontiac, Saturn, and Smart. Also, getting an electric vehicle is out of the deal.

6) Credit Unions

If the interest rates are high, then you can opt for Credit Unions. At Credit Unions, you can get financing at a lower price and fees than the big banks out there, and it has flexible credit requirements.

You can search for a Credit Union through the Credit Unione Locator provided by the National Credit Union Administration. The vehicle, income, and credit score restrictions will vary based on the Credit Union.

7) Carvana

Carvana is an online used-car dealer that sells cars, finance your purchase, and delivers the vehicle to your residence. You have to buy the car with a bad credit check and no money down from their inventory, and you get a car, truck, or SUV for personal use.

The good thing is that you get the vehicle with no minimum credit score, but they will check your credit score to make a financing decision.

8) Lending Tree

It is an online lending network with a variety of partnerships with auto lenders, banks, and financial institutions. Although it is an online network, it doesn’t specialize in bad-credit applicants, with its vast partner network, to quickly lias you with potential lenders.

Lending Tree will connect you with potential lenders, depending on your qualifications and the partner’s requirements. Due to its efficient services, the company has a rating of A- with the Better Business Bureau.

Bottom line

It can be disheartening to various lenders to get an auto loan and still an expensive mistake if you have poor credit. You need to do extensive research before signing the loan agreement as it shall save you time and money while getting that car. Although there are various deals, such as getting a car for $500 down, no credit check, among others, you need to beware of the rates that it comes with as it can be more expensive while paying back.

Once you get that auto loan, it is a building step to getting a good credit check, as you will have it for a few years. You can ensure that you pay up on time to rebuild your credit score, building a positive payment history. As it gets improves, you get to jumbo loan at a lower interest and refinance your previous auto loan.
I hope I have answered your burning questions concerning the bad credit, and with the guaranteed auto loans with bad credit providers, you shall conclude easily. Remember to stay safe, and together we shall overcome this pandemic.