You can use Carvana if you have bad credit although, Carvana does check credit when you buy a car through them.
But Carvana does work with people that have bad credit.
Carvana does not have a minimum credit score to be approved and they have a 99 percent approval rate, but you must also meet other criteria like being at least 18 years old or 19 years old in GA and AL and you must also make a minimum of $5,100 a year to $10,000.00 a year depending on the source.
And you must also not have any active bankruptcies or recent Carvana loan defaults.
When buying a car through Carvana, Carvana uses a 2 step process when checking your credit, which includes a soft credit inquiry for pre-qualification and then a hard credit inquiry for final auto loan approval.
Pre-qualifying for an auto loan with Carvana uses a soft credit check that does not impact your credit score, which allows you to see the financing terms for Carvana upfront without hurting your credit.
Then the hard inquiry is done for final auto loan approval for Carvana, and it may affect your credit score slightly but it only happens after you place the order for the car and proceed with final financing.
Having a minimum credit score of 660 or higher will increase your chances of getting approval for a car loan through Carvana.
You also must be at least 18 years of age, or 19 years of age in Alabama and Georgia and have a minimum annual income of $5,100 and have no active bankruptcies.
The way Carvana works is once you've chosen a car and placed an order, Carvana then completes a hard inquiry on your credit as part of the final underwriting process.
This step is important as it officially approves you for the auto loan, but it may cause a small and temporary dip in your credit score.
The easiest car company to get financing through is CarMax as well as Credit Acceptance and Carvana.
CarMax, Credit Acceptance and Carvana are companies that focus on bad credit financing and some car dealerships specialize in working with various credit profiles, and are often considered to be easier options for financing a car or vehicle when you have lower credit scores.
Even car brands like Hyundai, Kia and Ford have programs that assist borrowers with less than perfect credit.
Carvana and CarMax offer in house auto loan financing and work with people who have bad credit or poor credit scores.
And Carvana also has specific eligibility requires for people that have bad or poor credit.
Credit Acceptance is a company that is dedicated to providing auto loan financing options for a wide range of auto loan borrowers, including people that have subprime credit.
And some auto dealerships like Toyota of Whittier and Toyota Direct also specialize in helping customers that have bad or poor credit get auto loans and even those who have gone through bankruptcy.
For good credit, online auto lenders and traditional auto lenders can often work out.
You can expect to find easier auto loan financing from major brands like Chase as well as reputable online auto loan lenders, often with better interest rates.
And even credit unions can be a good option, for those with good credit, especially if you're a member of a credit union.
To improve your chances of getting an auto loan, especially with the best interest rates, try improving your credit score and pay bills on time and pay any debt down before applying for an auto loan.
If needed, a co-signer that has good credit can also increase your chances of approval for the auto loan, which may even get you a lower interest rate.
And if possible make a larger down payment, which can help to offset a higher risk loan and can lead to better terms of the loan.
And getting pre-qualified for the auto loan can allow you to see personalized auto loan terms without impacting your credit score, so that you can understand your budget before you shop for an vehicle.