Pros

• Multiple personal loan options
• No origination or prepayment penalty fees
• Lowest interest rates for traditional personal loans are competitive

Cons

• Must become a DCU member to apply
• No prequalification application

What you need to know about DCU loans

Digital Federal Credit Union, or DCU, is a not-for-profit financial institution with more than 800,000 members across all 50 states. DCU members can access their accounts at one of DCU’s branches in Massachusetts and New Hampshire, online, by phone or at one of DCU’s shared branch locations nationwide.

DCU offers several types of personal loans, which we’ll detail below.

Multiple loan options

DCU offers unsecured and secured personal loans. Here’s more about the types of personal loans that DCU offers.

• Traditional personal loan — DCU offers a traditional personal loan for people who need a larger amount of cash. Loan terms go up to 60 months and the interest rates — which include a 0.5% automatic payments and relationship discount — are competitive.
• Credit-builder loan — DCU’s credit-builder loan may help you build or rebuild your credit. You can apply to borrow between $500 and $3,000 with loan terms ranging from 12 to 24 months. But keep in mind that with credit-builder loans you don’t have immediate access to your loan funds. Instead, the amount you borrow goes into a savings account held by the lender. To help you build your credit, DCU reports all of your monthly payments to the credit bureaus. And when you pay off the loan, you get the money from the account.
• Quick loan — If you have less-than-perfect credit or need help recovering from a financial emergency, DCU offers a “quick loan.” You can apply for up to $1,000 with no credit check. If you’re eligible, you’ll have up to 12 months to repay your loan.
• Secured loan — DCU also offers a secured loan, where you can use your DCU savings account as collateral. DCU’s secured loans have lower starting APRs than its unsecured personal loans, and they have repayment terms of up to 120 months.

Membership required

Before you can take out a DCU loan, you’ll need to be a member. To qualify, you’ll need to meet one of these eligibility requirements.

• Be related to a current member
• Work at an eligible company
• Belong to an eligible organization
• Live in an eligible community

DCU publishes a list of eligible organizations, employers and communities on its website.

Keep in mind that if you want to apply for a quick loan, you must be a DCU member for at least 90 days.

Interest rate discount

If you qualify for DCU’s traditional personal loan, you might be eligible for an interest rate discount of up to 0.5%. To receive the discount, you must opt for automatic payments and maintain Plus or Relationship benefits on your DCU checking account.

Even if you’re eligible for the interest rate discount, it’s still a good idea to shop around to make sure you’re getting the best rate and loan terms for your situation.

A closer look at DCU loan personal loans

• No prequalification application — If you’re considering a DCU loan, you’ll need to apply to check your potential terms since DCU doesn’t offer a prequalification application. DCU says it determines your interest rate based on your “personal credit history, account relationship and payment method.”
• No prepayment penalty — If you want to pay off your loan early, youcan do so at any time with no additional fee or penalty.
• No origination fee — DCU doesn’t charge an origination fee to process your personal loan.
• Allows co-applicants — If you’re struggling to qualify for a personal loan or want to qualify for a lower rate, applying with a co-applicant may improve your chances of approval.
• Multiple repayment options — DCU offers a variety of ways to repay your loan, including recurring payments from your DCU savings or checking account, paying by phone, by mail or online.

Who is a DCU loan personal loan good for?

A DCU traditional personal loan may be a good option if you want to consolidate debt or finance a home renovation and are already a DCU member or qualify for membership. DCU’s lowest interest rates are competitive, but see if you qualify for its interest rate discount if you’re comparing potential rates from other lenders.

A DCU quick loan may make sense if you have little to no credit but need money for a financial emergency.

But remember: You must first qualify for DCU membership before you can take out a loan or open an account. If you don’t qualify, you’ll have to look elsewhere for a personal loan.

How to apply for a DCU loan

You can apply for a DCU personal loan online. There’s no prequalification application. You’ll need to provide the following information when you apply:

• Full name and address
• Email
• Date of birth
• Member number
• Social Security number
• Mortgage or rent amount
• Income
• Employment status

You can also add a co-applicant at this stage if you’d like.

Not sure if a DCU loan is right for you? Consider this alternative.

• Avant: If you have less-than-perfect credit, Avant may be a good option. You can also check your potential rate with a prequalification application without hurting your credit scores. (Your final terms or approval may change if you officially apply.)

How Credible works

If you’re looking to take out a new student loan or refinance a current one, it may be helpful to compare your options in one place. That’s what Credible aims to help you do.

Credible is an online marketplace that shows different financial products from multiple lenders so you can compare them side by side. In addition to debt and credit card consolidation loans, Credible can show you refinancing options for federal, private and Parent PLUS loans as well as student loans with variable and fixed interest rates.

It’s important to note that Credible is not a lender, bank or credit issuer — it works to connect you with a lender, or lenders, who may be a fit for your needs. The specific requirements and criteria to determine whether you’re eligible for a prequalified rate varies depending on the lender.

Key features of Credible’s refinancing and student loan platform

• APRs offered by Credible’s lenders are comparable to those of some other student loan and refinancing companies.
• There’s no fee to use Credible, and none of its student loan or student loan refinance lenders charge origination fees or prepayment penalties. But some lenders may charge a fee when you formally apply after prequalifying — it depends on the lender and loan you choose.
• Most Credible partner lenders require credit scores at least in the range of 670 and 700 to qualify for student loan refinancing.
• You can apply for prequalification and see your potential rates in minutes.
• Co-signers are allowed.
• You might be eligible for a bonus if you refer someone to Credible.

Easily compare lenders in one place

It’s important to compare multiple lenders before settling on a student loan or refinancing offer. Credible makes it easy to compare loan offers side by side without affecting your credit.

You can get an idea of where you might stand as a potential borrower by reviewing Credible’s partner lender profiles, which describe eligibility requirements. If you decide to submit a prequalification application, you can compare any offers you may be prequalified for in one place. But remember, prequalifying isn’t a guarantee of approval and the terms you’re offered after submitting a formal application can be different from the terms you prequalified for.

No fees, but …

Some lenders charge origination fees that help cover the cost of processing the loan. While none of Credible’s student loan or student loan refinance lenders charge origination fees, some may charge a fee when you formally apply with them. That’s one reason it’s important to review the fine print of a prequalified loan agreement before you make your final borrowing decision.

Good credit may help you qualify

Many of Credible’s lenders offer competitive variable and fixed APRs. To help you qualify for the best rates, Credible allows you to apply with a co-signer. Applying for a student loan with a co-signer who has good credit may improve your chances of qualifying (or help you get a better interest rate) with one lender or another.

If you’re thinking about refinancing your student loans, most of Credible’s partner lenders want to see credit scores of at least 670 to 700 on a scale of 300 to 850. Additionally, Credible’s lenders may also review your debt-to-income ratio.

If you’re not sure you’ll meet their specific criteria, you may want to consider applying with a co-signer.

A closer look at Credible

Here are some important considerations when refinancing and taking out a student loan with Credible.

• You or your co-signer must be a U.S. citizen or permanent resident to qualify.
• Potential for loan terms of up to 20 years can help you spread out (and lower) your monthly payments. Just keep in mind that the longer you stretch out your loan, the more you’ll end up paying in the long run. 
• Student loan amounts start at $5,500, while student loan refinancing amounts start at $5,000. All loan ranges depend on the lender, your education and financial profile.
• You may be able to refinance your student loan even if your loans are in deferment, depending on the lender.
• You may qualify for student loan refinancing even if you never graduated.

Who is a Credible student or refinance loan good for?

If you have hit your federal student loan limit and still need additional funding for school, Credible could be an option.

As with any other borrowing decision, it’s important to compare available lenders. Since Credible provides a comparison platform, you can potentially view a number of options in one place, which will save you time. And since Credible doesn’t conduct a hard credit inquiry to see if you prequalify, you can shop around for the best terms and interest rates for you without affecting your credit scores.

Additionally, if you have student loan debt of at least $5,000 and you can meet Credible’s partner lender application requirements, Credible could be an option for your student loan refinancing needs.

And even if you didn’t complete your degree, you may be able to qualify for student loan refinancing.

How to apply with Credible

You can apply with Credible online as long as you’re at least 18 years old and you or your co-signer is a U.S. citizen or permanent resident.

To submit your prequalification profile, you’ll need to complete three sections that ask you about your personal, financial and education information.

Once you submit your profile, Credible will run a soft credit inquiry and provide potential rates and loan terms you may qualify for. If you identify an option that works for you, you’ll be asked to provide additional information for the lender. Note that to do this, you would need to authorize the lender to evaluate your application and conduct a hard credit inquiry, which may affect your credit scores.

If you’re approved for a loan, you’ll receive a final offer from the lender you selected. You’ll want to carefully review the lender’s terms and conditions to make sure you are comfortable with moving forward. If the answer is yes, the lender may request documentation to verify the information provided on the application. If you submit the documentation, confirm everything is in order and sign the promissory note, the lender should notify you of how and when you will receive your funds.

Here’s some of the information you’ll have to give Credible when you apply.

• Full name and address
• Date of birth
• U.S. citizenship or permanent resident status
• Loan amount
• Employment status and annual income
• Expected graduation date
• Social Security number

Not sure if Credible is right for you? Consider these alternatives.

• Laurel Road: Laurel Road, which offers student loan refinancing, gives you a 0.25% interest rate discount when you set up electronic payment transfers from your bank.
• SoFi: SoFi is another lender that offers student loans and student loan refinancing — but it also has member benefits that include career coaching and financial planning.

Pros

• Competitive starting APR for those who qualify
• Ability to finance from 12 to 72 months depending on the loan amount
• Automatic-payment discount for existing customers

Cons

• Prepayment penalty
• $5,000 minimum loan
• Only offered in 15 states

What you need to know about KeyBank auto loans

Headquartered in Cleveland, Ohio, KeyBank offers new, used and refinance auto loans to people in 15 states. If you’re a current KeyBank customer and are able to lock in an auto loan discount, this may be an option worth considering. Here are some of the KeyBank auto loan features that stand out.

Range of car loan options

Key Banks’s auto loan offerings include the following:

• Loan for a new car, boat, RV or motorcycle
• Loan for a used car, boat, RV or used motorcycle
• Refinance your current auto loan

Competitive starting APRs

Compared to other lenders, KeyBank offers competitive interest rates for those who qualify. While KeyBank doesn’t specify lending requirements, lenders typically offer their most-favorable rates to applicants with higher credit scores, long and successful credit histories, and low debt-to-income ratio.

In addition to competitive interest rates, KeyBank offers an interest rate discount of 0.25% percentage points to KeyBank customers who participate in the optional automatic-payment deduction plan. Automatic payments must be established by using either a qualifying KeyBank checking account or savings account.

But even if you’re eligible for the interest rate discount, it’s wise to shop around for the best available rate that matches your credit history and financial situation. Keep in mind, this lender doesn’t offer a prequalification application — so if you apply, the bank will pull your credit reports, which will temporarily lower your credit scores.

If you want to shop for the best interest rates without affecting your credit scores, you should start with lenders that use a soft credit inquiry to estimate what you may be eligible for. 

Only offered in 15 states

KeyBank only offers loans for those living in Arkansas, Colorado, Connecticut, Idaho, Indiana, Maine, Massachusetts, Michigan, New York, Ohio, Oregon, Pennsylvania, Utah, Vermont or Washington. If you live elsewhere, you’ll have to find another lending option.

Early-prepayment penalty

If you decide to repay your total loan amount within 18 months of your loan agreement, KeyBank will charge a $150 early-prepayment fee. So before you pay off your loan early, calculate whether the additional payment offsets the savings in interest.

A closer look at KeyBank auto loans

Here are some of the finer details to know when comparing KeyBank with other auto lenders.

• The minimum loan amount is $5,000.
• Loan terms range from 12 to 60 months for motorcycles and up to 72 months for autos.
• KeyBank charges an origination fee on motorcycle loans.

Is a KeyBank auto loan the right fit for you?

A KeyBank auto loan is worth considering if you’re already a customer. For people who don’t like the hassle of dealing with multiple financial institutions, having your banking and auto accounts serviced by one bank could help streamline your money-management efforts. And you may also be able to take advantage of the automatic-payment discount.

It’s wise to find lenders who offer prequalification so you can check your estimated rates and terms beforehand. But if you want to shop around without affecting your credit scores, KeyBank isn’t for you. That’s because the lender conducts a hard credit inquiry, which can negatively affect your credit scores.

How to apply for a loan from KeyBank

You can choose where you apply, either online, over the phone or at one of the bank’s branches. Take note: If you already have an account with KeyBank, you can log in as a current online banking user. But if you’re not an existing bank customer, you’ll have to provide personal information like your address, Social Security number, identification, employment status and date of birth. You’ll also want to indicate if you have a co-signer.

If you’re approved, a bank representative will contact you with your loan offer. If you’re not approved, you’ll receive a notification in the mail within seven to 10 business days with a reason.

Not sure if KeyBank is right for you? Consider these alternatives.

If you’re considering purchasing a new or used car or motorcycle, KeyBank offers competitive interest rates and an automatic-payment interest rate discount. But if you plan to pay off your loan early, watch out for the prepayment penalty.

If you’re not sure whether a KeyBank auto loan is right for you, here are some other options to consider.

• Capital One auto loan: This lender could be good if you want to apply for prequalification.
• Bank of America auto loan: If you’re looking for competitive rates with no upfront fees, this lender may be an option.

State Farm is currently not accepting auto loan applications. For another option, check out our reviews of Capital One Auto Finance and LightStream auto loans.

What you need to know about State Farm Bank auto loans

State Farm is primarily known for its insurance offerings, but the company also offers a variety of auto loan options through State Farm Bank that may be worth considering. Here are a few.

• New- or used-car loans
• Refinancing
• Lease buyout loan
• Private-party vehicle financing

Payoff Protector

If your car is financed through State Farm Bank, the loan is in good standing and your insurer declares a total loss, State Farm Bank will look at the final settlement amount you get, along with whatever you may owe on the car, and cover any remaining principal balance. State Farm Bank calls this feature “Payoff Protector.” Note that Payoff Protector is not an insurance product, and it won’t cover any past-due payments or related late fees.

Cars that State Farm Bank finances are covered by Payoff Protector, assuming they’re insured. Other benefits of Payoff Protector may include minimizing the need to roll over any unpaid loan balance into the cost of a replacement vehicle.

Applying with an agent

According to a State Farm representative, State Farm Bank requires all new applicants to apply by phone or in person if they’re not existing State Farm insurance or bank customers. That means calling into the State Farm Bank customer service line or connecting with a local agent in your area. If you want to apply online, you’ll have to have an existing State Farm Bank account or State Farm insurance policy.

Like many lenders, State Farm Bank also allows you to apply to get preapproved for a car loan to check if you can get an estimate of the loan amount and annual percentage rate, or APR, that you may qualify for. While you may be able to prequalify with some lenders without affecting your credit, State Farm Bank doesn’t indicate on its site whether applying for preapproval will result in a hard or soft inquiry on your credit.

A preapproval offer is good for 30 days from your approval date. Keep in mind that this offer isn’t a loan approval — you’ll still have to submit a final loan application.

Competitive interest rates

State Farm Bank offers competitive fixed interest rates on its auto loans. The bank determines your eligibility by reviewing a number of factors such as your credit and transaction history and your debt-to-income ratio.

To qualify for the most-favorable rates, though, you likely need to have solid credit.

A closer look at State Farm Bank auto loans

Here are some additional details to consider when comparing State Farm Bank with other auto lenders.

• New-car loan terms range from 12 to 84 months. But if you decide to purchase a used car, you can only finance it for up to 72 months.
• Car loan amounts can range from $5,000 to $250,000, though all auto loan amounts depend on the car and your eligibility.
• State Farm Bank doesn’t finance vehicles with more than 150,000 miles or vehicles that are driven more than 50,000 miles annually.
• State Farm Bank charges a $100 prepayment penalty for any auto loan paid in full within the first 12 months.
• Payoff Protector is offered with every car loan from State Farm Bank.
• You must be 18 years or older, have proof of identity, reside in the U.S. and be listed as a registered owner on the title and registration of the vehicle to apply.
• State Farm auto loans are not available to residents of Massachusetts or Rhode Island.

Is a State Farm Bank auto loan a fit for you?

A State Farm Bank car loan is an option for someone looking to finance, or refinance, a variety of vehicle types, including cars, boats, recreational vehicles, trailers and motorcycles. The Payoff Protector feature could provide some peace of mind and possibly savings on gap insurance, depending on the level and cost of that coverage.

Existing State Farm customers don’t get any special perks if they get auto loans with State Farm Bank. But if you open a State Farm Bank credit card, you may be eligible for bonus points on your car insurance premiums, which could save you some money depending on your situation.

How to apply for a loan from State Farm Bank

If you already have a State Farm Bank account or State Farm insurance policy, you can log into your account online and apply. If not, you’ll either need to apply via phone or contact a local State Farm Bank agent, according to a State Farm representative.

Typically, if your car loan application is submitted during normal hours of operation, you should receive a decision within an hour. If you complete a full loan application, your application is valid for 60 days from your submission date.

From Christmas parties to special presents under the tree, the holidays can come with a lot of financial pressure.

If holiday spending fills you with more anxiety than cheer, you’re not alone. In fact, 39% of Americans reported not being able to afford holiday gifts for the upcoming season, according to a 2022 Credit Karma survey. And 69% of Americans plan to take on debt to cover costs during the holidays, according to the survey, with respondents citing the rising cost of living and inflation as the top factors contributing to financial pressures.

Some traditional lenders market loans for the holidays specifically in anticipation of increased holiday spending on items like Christmas presents or food for a family dinner. But it’s important to keep in mind that a holiday loan can come with a hefty price tag in the form of high fees and APR.

Here are some of the important costs and risks to consider. We’ve also compiled some options that might help you hit your holiday goals without using a Christmas loan.

• What are Christmas loans?
• Where can I borrow money for Christmas?
• Downsides to consider about Christmas loans
• What to consider if you’re shopping for a Christmas loan
• Other holiday financing options

What are Christmas loans?

As you explore your holiday options, you may come across lenders specifically advertising “Christmas loans.” What they’re actually offering is a personal loan designed for people who need some extra money around Christmas or other winter holidays.

Just like other types of personal loans, a Christmas loan or holiday loan can be a secured or unsecured loan. Your terms and eligibility are determined by a variety of factors that vary by lender, including your credit and income. To qualify for the most-favorable terms and most-competitive interest rates, you need to have good credit.

Where can I borrow money for Christmas?

You may be able to borrow money from lenders, retailers and buy-now, pay-later apps. As you weigh your options, be sure to pay attention to fees and interest rates and avoid high-APR loans such as title loans and payday loans.

If you’re thinking about borrowing money for Christmas gifts, here are some options to consider.

• Affirm — This buy-now, pay-later — or BNPL — lender allows you to pay over time for online or in-store purchases by choosing Affirm at checkout or using a virtual card within the app. You can apply to prequalify through a soft credit inquiry that doesn’t affect your credit. Thousands of retailers offer payments through Affirm, and some have 0% APR offers.
• Earnin — Earnin offers online paycheck advances. This may allow you to access a maximum of $100 per day, or $500 per pay period ($250 for new members). The app gives you the option to leave a voluntary tip, but it doesn’t charge mandatory fees or interest.
• Chime — If you’re looking to stretch your holiday budget just a bit, a Chime checking account could be a good solution. When you set up direct deposit, you’ll be able to access your paycheck up to two days earlier than with some traditional bank accounts.
• Possible — Possible offers loans of up to $500 that you can access “instantly” and pay back over four installments, even if you have bad credit. Unlike many other BNPL options, this lender is not tied to any specific retailers. This could give you extra flexibility when shopping for Christmas gifts.

Downsides to consider about Christmas loans

As with most forms of credit, both you and your lender face some risks. Here are a few of the disadvantages to sort out before applying.

• Fees — Some lenders charge an origination fee or a prepayment penalty. These additional fees can add up.
• Impact on credit — If you make a late payment or default on your loan, it can negatively affect your credit scores. Pay close attention to the estimated repayment amount so that you know you can afford the payments.
• Your financial situation could get worse — If you can’t repay your Christmas loan because of high interest rates or short repayment terms, you could end up making your financial situation worse.
• Same as a payday loan? — Carefully check the terms of the loan you’re considering, especially if you’re looking to borrow $500 or less. The offer may actually be just like a payday loan, which can come with costs equivalent to a 400% APR. Given how much it could end up hurting financially, it’s the type of loan that’s best not to consider unless you’re facing a true emergency with no other options.

Pro tip: When shopping for a Christmas loan or holiday loan, always be sure to compare the fees, interest rate ranges, loan amounts, monthly payments and borrower requirements for different lenders. Comparing lenders and different types of loans will help you find the best loan options available for you.

What to consider if you’re shopping for a Christmas loan

If you still think a Christmas loan might be your best option, here are a few things to consider.

• Prequalification — Some lenders let you prequalify for a loan by pulling a soft credit inquiry, which won’t affect your credit scores. Submitting several prequalification applications can help you narrow down your list of lenders and compare offers.
• Monthly payments and a fixed timeline — Christmas loans are installment loans. That means they’ll have monthly payments due over a specific amount of time. You’ll want to plan for this in your budget and be sure you can afford the payments.
• Interest rates — Depending on loan terms and how your credit looks, personal loans tend to have lower interest rates than credit card interest rates. Check the terms and math carefully to see if taking out a personal loan may save you more than a credit card would.
• Fast funding if approved — If you choose an online lender, generally the application and funding process is quick and easy. If you’re approved, you might even receive your loan the same business day, giving you more time to prep for the holidays.

Other holiday financing options

Ideally, planning ahead and budgeting for your holiday expenses is the best way to enjoy the season while avoiding a post-holiday financial hangover. But we know that’s often not realistic or possible — sometimes basic necessities cut into our holiday budgets.

But there may be options for you that are less risky and costly than a Christmas loan. Here are a few possibilities.

Buy-now, pay-later apps

Like Affirm, a number of newer apps have surfaced in recent years that offer to make buying now and paying later easier than ever. Typically, a buy-now, pay-later app lets you make purchases by paying a fraction of the total upfront and paying off the rest in installments — often with no interest as long as the payments are made on time.

If this sounds good to you, check out this roundup of the 5 best ‘buy-now, pay-later’ apps we compiled to help you learn more.

As with any form of lending, always check the terms of an app carefully to see if there are any fees, interest or other charges to be aware of.

Credit cards

When used strategically, a credit card may be worth considering. If you have a cash back credit card, you may be able to leverage points or special financing for holiday expenses.

You can also consider applying for a credit card that offers an intro 0% APR for your purchases. If you can get one with an intro period between 12 and 21 months during which interest won’t accrue on your purchases, that may give you enough time to repay your holiday expenses without interest adding to the cost. You’d just have to pay off your balance before the introductory period expires.

Remember that it’s a good idea to only buy what you can comfortably afford to pay back during an no-interest intro period, no matter how big your credit limit might be.

If you think it’s worth looking into a credit card option, here’s a place to start for …

• Credit cards for fair or average scores
• 0% interest credit cards
• Cards for building or rebuilding credit

Cash advances

With a cash advance, you’re essentially using your available credit on your card to take out a loan for cash in hand. Credit card companies typically charge a cash advance fee (often between 3% and 5%, with minimums of $5 to $10) and a different APR for the distributed cash amount (often higher than the APR for regular purchases).

With that higher cost in mind, unless you really need or want actual cash, you should consider another option.

Next steps

Creating a realistic holiday budget can be great a way to view your regular expenses and holiday expenses in one place and track your spending. Consider reading our guide for even more tips to help you manage your holiday debt, including creative gift-giving ideas.

Pros

• Range of loan options
• Interest-rate discounts for eligible bank customers and qualifying electric vehicles
• Considers people who don’t have a U.S. credit history

Cons

• Only available in 19 states
• Two years of verified income required
• No ability to apply for prequalification

What you need to know about Bank of the West auto loans

Bank of the West is an affiliate of European bank BNP Paribas that offers wealth-management services and personal and business banking products — like credit cards, personal loans and home equity lines of credit — along the West Coast and across the Southwest, Midwest and Rocky Mountain states. If you’re thinking about getting a Bank of the West auto loan, here are some features that stand out.

Wide range of vehicle financing options

Bank of the West offers financing for …

• New cars
• Used cars
• Lease buyout

Bank of the West also offers other vehicle loans, including new and used loans for motor homes, travel trailers and boats.

Rate discounts for electric-vehicle financing and bank customers

Bank of the West customers can receive a 0.25% interest-rate discount for setting up automatic payments from a Bank of the West checking or savings account. And if you purchase a qualifying electric vehicle, you could get an extra 0.25% interest-rate discount — for a total savings of 0.50%.

Not available in every state

You can only apply for a Bank of the West auto loan in a limited number of states. If you don’t live in one of the 19 states where Bank of the West offers auto loans, you’ll have to find another lender.

If you do live in a state where Bank of the West operates, keep in mind that you’ll have to visit a local branch to complete the application process. If you prefer the convenience of applying for and finalizing a loan in the comfort of your home, you might want to look for a different lender.

A closer look at Bank of the West auto loans

Here are some other things to know about Bank of the West auto loans.

• Bank of the West says it prefers credit scores of 600 or higher.
• Bank of the West requires at least two years of verifiable income to qualify.
• The minimum auto loan amount is $7,500.
• Maximum loan term is 84 months, but loan term generally depends on loan amount.
• If you’ve just moved to the U.S. and don’t have a U.S. credit history, Bank of the West may still consider you for an auto loan for up to 90% of the vehicle’s value, up to $150,000, depending on your relationship with the bank.
• Bank of the West allows co-signers. A co-signer with good credit may improve your chances of being approved for a loan and receiving a better interest rate.
• The bank doesn’t charge a prepayment penalty, so you won’t have to worry about paying a fee if you pay off your auto loan early.

Is a Bank of the West auto loan right for you?

A Bank of the West auto loan may be a good fit if you’re an existing customer who plans to finance an eligible electric vehicle. It could also be ideal if you recently moved to the U.S. and are struggling to get auto financing because you haven’t built a U.S. credit history yet.

But if you’re in the early stages of car shopping and want to shop around and compare loan estimates, Bank of the West may not be right for you. According to a bank representative, the lender doesn’t offer the ability to see if you prequalify for an auto loan, and you’ll need information about the car you want to finance when you apply.

Bank of the West may also not be ideal if you have shaky credit. The bank notes on its website that credit scores of 600 or higher are preferred.

How to apply for a loan from Bank of the West

To apply for an auto loan with Bank of the West, you can get started online, over the phone or at one of the bank’s branches — though note that you’ll have to finish your paperwork at a physical branch if you’re approved. 

It’s a good idea to check your credit and shop around. Understanding your credit can help you figure out what to expect — in general, lower credit scores mean higher interest rates. And shopping around can help you find the best loan rate and terms for your needs.

Read our article on how to get a car loan to learn more about the process.

Not sure if Bank of the West is right for you? Consider these alternatives.

• Chase auto loan: Chase could be good for people who want to apply for a loan and shop for a car in one place.
• Bank of America auto loan: Bank of America may be ideal for someone who wants a lender who offers car loans in all 50 states.

Pros

• Competitive interest rates
• Fast application process
• FICO scores of 575 or above considered

Cons

• Vehicle restrictions
• Loans not available for residents of Alaska or Hawaii
• $8,000 minimum loan amount for new cars

What to know about MyAutoLoan auto loans

MyAutoLoan is an online car loan marketplace operated by Horizon Digital Finance LLC. With MyAutoLoan, you’re matched with lenders based on your financial profile using an evaluation method it calls “Preferred Placement.”

The process involves completing an online application and providing personal information such as your Social Security number and sources of income. From there, MyAutoLoan aims to match up to four lenders to your profile.

If you’re thinking about applying with MyAutoLoan, here are some things to consider.

Range of car loan options

MyAutoLoans’ car loan offerings include the following:

• New-car loan
• Used-car loan
• Refinance loan
• Lease buyout financing
• Private party loan

A range of credit profiles considered

MyAutoLoan requires applicants to have FICO credit scores of 575 or higher in order to qualify. The higher your credit scores, the easier it may be to qualify for the best interest rates and loan terms.

If you have some issues with your credit history, you may want to consider applying with a co-signer who has a solid credit history. Applying with a co-signer who has better credit may help improve your chances of getting approved, and with more-favorable terms.

When shopping for an auto loan, it’s important to compare different lenders before making your final decision. Keep in mind that lenders outside of the MyAutoLoan network may offer better interest rates and terms.

Fast application process

Once you complete MyAutoLoan’s online application, the site runs a soft credit inquiry to match you with up to four lenders. This doesn’t affect your credit scores — but once you select a lender, it can run a hard credit inquiry as part of processing and finalizing the terms of your loan offer. This could hurt your scores a bit temporarily.

If you’re approved and satisfied with the lender’s offer, you could receive a check within 24 hours of signing the agreement.

After you receive your check you can take it to the dealership or seller of your choice or use it to refinance your current auto loan.

A closer look at MyAutoLoan auto loans

Here are some more details to know when comparing MyAutoLoan with other auto lenders.

• Loan terms of up to 72 months depending on the lender.
• The minimum loan amount you can borrow is $8,000 ($5,000 for a refinance loan).
• MyAutoLoan auto loans aren’t available in Alaska or Hawaii.
• All applicants and co-applicants must be at least 18 years old or of minimum age in their state of residence.
• You must make at least $21,000 per year ($18,000 for a refinance loan) to prequalify.
• Depending on the lender, you may need to make a car down payment.
• You can’t have open bankruptcies.
• All vehicles must be 10 years old or newer.
• Vehicles must have 125,000 miles or less.

Is a MyAutoLoan car loan right for you?

A car loan from MyAutoLoan might be a good option if you’re looking for the freedom and flexibility to select the dealership or private seller you want. If you’re approved with MyAutoLoan, you receive a check or certificate and can use it to buy the vehicle you want or refinance your current auto loan. Additionally, if you want to take the hassle out of comparing preliminary auto loan offers, MyAutoLoan provides multiple offers in one place.

But a word of caution: Any lender that MyAutoLoan shares your personal information with may reach out to you directly. If you don’t want to be bothered by other lenders or credit sources, you may want to explore other auto financing options.

Additionally, MyAutoLoan will only consider a minimum loan amount of $8,000 ($5,000 for a refinance loan) or more. If you’re looking for a smaller loan amount, you’ll have to find another lender.

How to apply for an auto loan from MyAutoLoan

To apply with MyAutoLoan, note that you must be at least 18 years old, live in a state where the company does business, and have a FICO score of 575 or greater. 

If you qualify, you should receive up to four offers within minutes. You can then select a lender and complete its application process.

Before you apply for an auto loan with MyAutoLoan, it’s a good idea to check your credit and compare other loan offers. Understanding your credit can help set expectations — in general, lower credit scores will result in higher interest rates. And shopping around can help you find the best loan rate and terms for your needs. Read our article on how to get a car loan to learn more about the process.

Not sure if MyAutoLoan is right for you? Consider these alternatives.

Maybe you’re looking for a smaller loan amount or you want to consider lenders outside of MyAutoLoan’s network. If so, you may want to consider this alternative.

• Capital One Auto Finance: This lender is an option for people who want to see an estimated loan offer without a hard credit inquiry.

Updated October 26, 2021

This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Written by: Ashley Chorpenning

Pros

• Range of loan options
• Relationship discount for having an M&T bank account
• Borrow as little as $2,000

Cons

• Limited availability
• No ability to apply for prequalification (according to a customer service rep)
• Must select a car before applying online
• Potential for fees

What you need to know about M&T Bank auto loans

M&T is a regional bank that offers banking, lending, insurance and investment products, including credit cards and personal loans. Founded in Buffalo, New York, in 1856, M&T serves people in Washington, D.C., and eight states along the East Coast.

If you’re considering applying for an M&T Bank auto loan, here are some features that stand out.

Range of car loan options

M&T Bank offers several auto loan options to meet a range of auto finance goals.

• New-car loan from a dealership
• Used-car loan from a dealership
• Private party loan
• Refinance loan

Competitive loan rates and customer rate discounts

M&T Bank’s starting annual percentage rate, or APR, is competitive with what some other banks offer. But to qualify for the lender’s lowest available APR, you must …

• Choose a loan term of 63 months or less
• Plan to buy a vehicle with a model year of 2018 or newer
• Have or open an M&T MyChoice Premium or Power Checking account
• Enroll in automatic payments from any M&T checking account
• Meet the bank’s credit standards — M&T notes on its website that your APR is based on your credit profile, but doesn’t specify what credit scores you need to qualify for the lowest APR
• Have a good deposit relationship with the bank

Must select your car before applying online

According to a customer service representative, if you want to apply for a new- or used-car loan through the M&T Bank website, you must select a vehicle first. As part of the online application, you’ll need to provide the car’s year, make, model, mileage and vehicle identification number, or VIN.

A closer look at M&T auto loans

Here are some more details that will help you compare M&T Bank with other auto lenders.

• M&T Bank auto loans are available only to residents of Connecticut, Delaware, the District of Columbia, Maryland, New Jersey, New York, Pennsylvania, Virginia and West Virginia.
• M&T offers loan terms of up to 84 months — but remember that while a longer loan term may mean lower monthly payments, you’ll end up paying more interest on the loan.
• You must be 18 years or older and a legal U.S. resident to apply.
• M&T Bank offers auto loans in amounts as low as $2,000.
• The bank allows joint applicants. Keep in mind that your joint applicant will be held just as responsible as you are for paying back the loan.
• Whether the bank charges fees, like a loan origination fee or prepayment penalty, isn’t clear from its website.

Is an M&T auto loan right for you?

If you live within the bank’s service area, are an existing customer and qualify for its low starting APR, an M&T Bank auto loan might be a good option. This way you can keep your banking and borrowing under one roof.

M&T Bank could also be ideal if you only need to borrow a small amount. Some auto loan lenders have higher minimum amounts — typically $4,000 or more.

But if you plan to pay off your car loan early, you might want to steer clear of M&T if an auto loan from the lender comes with a prepayment penalty.

M&T Bank may also not be your best bet if you want to shop around and compare loan offers before settling on a lender. The bank doesn’t allow you to apply for prequalification online to see what rate and terms you might qualify for. And if you don’t know what car you want when you apply, you may not find a loan option with M&T.

How to apply for a loan from M&T Bank

To apply for an auto loan with M&T Bank, you must be at least 18 years old and you must be a U.S. resident. You’ll likely need to have your vehicle already picked out as well. 

You can apply for an auto loan online, over the phone or at one of the bank’s branches.

Before you apply for an auto loan with M&T Bank,  it’s a good idea to check your credit and compare other loan offers. Understanding your credit can help set expectations — in general, lower credit scores will result in higher interest rates. And shopping around can help you find the best loan rate and terms for your needs. Read our article on how to get a car loan to learn more about the process.

Not sure if M&T Bank is right for you? Consider these alternatives.

If you don’t live in an area M&T Bank serves, or you aren’t sure if an M&T auto loan is right for you, here are some other lenders to consider.

• Capital One Auto: Capital One could be an ideal option for someone who wants the ability to apply for prequalification and see an estimated loan offer without a hard credit inquiry.
• Bank of America auto loan: Bank of America might be a good option if you don’t want to pay a prepayment penalty.

Updated August 30, 2021

This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Written by: Ashley Chorpenning

Pros

• Range of financing options
• Special financing incentives for college students and recent grads
• Red Carpet Lease offers flexible terms

Cons

• Can only be used to finance Ford and Lincoln vehicles
• Late-payment fees

What you need to know about Ford Credit auto loans

The Ford Motor Credit Company — also known as Ford Credit — is the financial-services division of Ford Motor Company.

If you’re thinking about financing your next Ford or Lincoln with a Ford Credit auto loan, here are some key features that stand out.

A range of loan options

Ford Credit offers a variety of auto loan options.

• Standard purchase for new vehicles
• Standard purchase for used and certified pre-owned vehicles
• Flex Buy loan on new vehicles — Features a payment plan with a lower payment for the first few years and a higher payment in the final years
• Red Carpet Lease — Includes benefits such as a range of mileage and lease term options
• Lease buyout loans
• Commercial financing

Incentives and discounts

As part of its “Ford Drives U” campaign, Ford Credit offers a $500 bonus for current college students and recent graduates who buy or lease an eligible new 2020 or 2021 Ford or Lincoln vehicle.

Keep in mind that incentives may vary by dealer and are subject to expire or change. And before you buy or lease a Ford or Lincoln vehicle, make sure to check with your local dealer to see if you qualify for any incentives and offers to ensure you’re maximizing the money you’re putting toward a vehicle.

Red Carpet Lease provides flexibility

When deciding between leasing or buying a new Ford vehicle, you might find that the lender’s Red Carpet Lease option has a few unique benefits worth considering. One advantage of the Red Carpet Lease is its Advanced Payment Program, which gives you the option of making your monthly lease payments as a lump sum. And making a lump sum payment is generally less expensive than the total monthly payments amount.

The Red Carpet Lease also comes with a guaranteed asset protection, or gap, benefit. Gap coverage can help you avoid unnecessary expenses if your car is stolen or damaged beyond repair by covering the difference between the insurance payout and outstanding lease balance.

Note that even though the lender offers gap protection on its leased vehicles, it may not be the best gap coverage out there. When selecting gap protection, shop around and get different quotes to find the most cost-effective solution for your needs.

Only for Ford and Lincoln vehicles

Though Ford Credit offers financing for personal and commercial use, you can only lease or buy vehicles from Ford or Lincoln dealerships.

And while financing with Ford Credit may be a good option if you’re in the market for a Ford or Lincoln vehicle, consider exploring other options before making a decision. Limiting your search to one dealership also limits your access to competitive interest rates and terms that you might get from other lenders.

A closer look at Ford Credit auto loans

Here are some of the finer details to know when comparing Ford Credit auto loans with other lenders.

• Standard loan terms range from 36 months to 84 months, while the lender’s Flex Buy loan term is 66 months (with two different payment schedules).
• The Ford Credit Flex Buy program features a 66-month contract with two payment schedules. Generally, the first 36 months of your contract will have a lower fixed monthly payment than you’d get with a traditional 60-month loan. But be careful: Your monthly payments during the second schedule will be higher than your first 36 months of the contract. If you don’t prepare for this monthly payment increase, you may find yourself facing financial hardship. If you end up struggling to make on-time payments or you default on your loan, your credit could be negatively impacted — and you risk losing your car (repossession).
• If you’re facing a financial burden, Ford Credit may give you the option to defer a payment until a later date. Before an extension request is granted, Ford Credit will review your account for eligibility.
• If your loan payment is deemed late, a fee may apply, based on the state laws where your loan agreement originated.
• If you qualify for a Ford Credit auto loan, you have the option to purchase extended service plans, like the Ford Protect Premium Maintenance Plan, which covers all scheduled maintenance. This could be ideal if you’re in a position to buy a plan — you won’t have to worry about routine maintenance costs for the length of the plan.

Is a Ford Credit auto loan right for you?

A Ford Credit auto loan or lease might be a good fit if you’re searching for a Ford or Lincoln vehicle. Among its wide range of financing options, you may be able to find a loan or lease to match your needs.

For example, if you need a high-mileage lease, Ford Credit’s Red Carpet Lease may be a good option. Or if your monthly payment budget is low now, but you anticipate you’ll be able to afford a higher car payment in a few years, the Flex Buy program may fit your needs.

Ford Credit may also be ideal if you’re a college student or recent graduate who’s eligible for the company’s incentive program.

How to apply for an auto loan from Ford Motor Credit Company

You can apply for a Ford Credit auto loan or lease online or by visiting your local Ford or Lincoln dealership.

Once you submit your application online, the lender says you’ll receive a decision right away.

Before you apply for an auto loan with Ford Credit, it’s a good idea to check your credit and compare other loan offers. Understanding your credit can help set expectations — in general, lower credit scores will result in higher interest rates. And shopping around can help you find the best loan rate and terms for your needs. Read our article on how to get a car loan to learn more about the process.

Not sure if Ford Credit is right for you? Consider these alternatives.

If you’re not sure whether a Ford Credit auto loan is right for you, here are some other options to consider.

• Bank of America auto loan: This lender is an option for those who are Bank of America Preferred Rewards clients and qualify for an interest rate discount.
• LightStream auto loans: LightStream may be ideal for someone who doesn’t want to be limited to shopping for a Ford vehicle — or who wants to buy an older Ford vehicle.

Updated April 10, 2023

This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Written by: Ashley Chorpenning

Pros

• Prequalification available
• No origination fee or prepayment penalty

Cons

• Must have a current loan with at least 24 months of remaining payments
• Vehicle age, use and mileage restrictions apply
• Not available in all 50 states

What you need to know about LendingClub auto refinancing

If you’re looking to reduce your current monthly car payment or lower the interest rate on your auto loan, LendingClub auto refinancing could be worth considering. But if you’re shopping for a new or used car and want to take out a loan, you’ll need to look for financing elsewhere. Though LendingClub does offer personal loans and auto refinancing loans, it doesn’t offer traditional car loans.

Here are some key features of a LendingClub auto refinancing loan that you’ll want to consider.

No origination fee or prepayment penalty

Some lenders charge an origination fee that covers the cost of processing your loan application and paying out the funds, but LendingClub doesn’t charge this fee.

LendingClub doesn’t charge a prepayment penalty either — this means you can repay all or part of your loan early without being charged to do so. And paying off your loan sooner can mean saving money on interest.

When shopping for auto refinancing, make sure to asses all fees that could make your loan more expensive overall.

Vehicle age and mileage restrictions

To qualify for auto refinancing with LendingClub, you must have a current auto loan with a balance between $4,000 and $55,000. You also need to have at least 24 months of remaining payments on your car loan.

LendingClub will only consider refinancing of vehicles that are 10 years old or newer and that have fewer than 120,000 miles. You also won’t be able to refinance any recreational vehicles, motorcycles or commercial vehicles.

And some makes/models don’t qualify, including: Hummer, Pontiac, Saab, Saturn, Daewoo, Isuzu, Suzuki, Nissan Leaf and Oldsmobile.

Offer within minutes if you qualify

LendingClub offers applicants the ability to apply for prequalification, which won’t affect your credit scores. Once you provide some basic personal information, you can receive multiple auto refinancing offers within minutes — if you’re eligible. Although getting prequalified doesn’t mean you’re approved for a loan, it does help you understand whether you’re likely to be approved and the loan terms you might qualify for.

If you formally apply for a loan after selecting an offer, the entire application process can take up to 15 business days to complete. That said, even if you’re approved for a loan from LendingClub, continue to make payments on your existing loan until your original lender confirms that your auto loan has been repaid, or else you might face late penalties.

A closer look at LendingClub auto refinancing

If you’re considering applying for LendingClub auto refinancing, here are some other details to know.

• Co-borrowers are allowed — LendingClub allows you to add a co-borrower to an application. In some cases, a co-borrower could help you qualify for better terms.
• State restrictions — Auto refinancing isn’t available to borrowers in every state. Make sure to check if it’s available in your state before taking the time to apply.
• Loan amount — The payoff amount on your current auto loan needs to be between $4,000 and $55,000.
• Existing loan — For your current auto loan to qualify for refinancing, it must have at least 24 months of remaining payments. Your car must be registered in the state you live in, and all payments on your current loan must have been made on time. Additionally, all loans must have been initiated at least one month earlier. Also, if you live in California, you can’t make changes to your title if your registration expires within 60 days from the date you apply. 
• Competitive starting interest rates — While LendingClub doesn’t provide specific lending requirements, the lender says it offers the most favorable rates to applicants with excellent credit.

Is LendingClub auto refinancing right for you?

If you have an eligible auto loan and are looking for a lower interest rate or a lower monthly payment, LendingClub auto refinancing could be a good fit. But to qualify for the best terms, LendingClub says applicants must have excellent credit.

Even if you’re not ready to make a final decision on refinancing, you can apply for prequalification to check your estimated rate and terms beforehand to see if it makes sense to move forward. LendingClub’s simple process to apply for prequalification could allow you to explore its auto refinancing offers without affecting your credit scores.

But if you need more lending options, like a lease buyout loan or new car financing, you’ll have to find another lender.

How to apply for LendingClub auto refinancing

To apply for prequalification for a LendingClub auto refinance loan, you must be at least 18 years old.

Before you apply for prequalification with LendingClub, it’s a good idea to check your credit and compare other loan offers. If your credit has improved, refinancing could result in a lower interest rate. But if your credit has stayed the same or gotten worse, getting a lower interest rate could be difficult.

Shopping around can help you find the best loan rate and terms for your needs. Read our article on how to refinance a car loan to learn more about the process.

Not sure if LendingClub auto refinancing is right for you? Consider these alternatives.

If you’re looking to refinance your auto loan, LendingClub auto refinancing offers competitive starting interest rates and a simple process to apply for prequalification. But if your vehicle or auto loan doesn’t meet LendingClub’s refinancing requirements or you want to explore other options, here are a couple of alternatives to consider.

• OpenRoad Lending auto refinancing: This lender could be a good option for someone whose vehicle has mileage that’s a bit higher.
• RateGenius auto refinance loan: RateGenius could be ideal if you want to compare rates.

Updated August 30, 2021

This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Written by: Ashley Chorpenning

Pros

• Flexible payment options
• No application fee or prepayment penalty
• Accepts joint applicants

Cons

• People with credit scores lower than 650 may have a tough time getting approved
• Starting APRs are high
• Only available in the Midwest

What you need to know about Huntington Bank car loans

Huntington Bank — originally The Huntington National Bank — is a full-service bank offering checking accounts, savings accounts, credit cards, home equity loans and more. Based in Columbus, Ohio, the bank serves seven states across the Midwest. If you’re considering applying for a Huntington Bank auto loan, here are some features that stand out.

Basic car loan options

Huntington Bank offers the following loan options:

• New-car loans
• Used-car loans

Flexible payment schedules

Huntington Bank offers weekly, monthly or bi-weekly payment schedules for paying back your loan. You have 60 days to make your first payment, and you can also choose your payment date.

If you find you need to skip a payment due to a financial emergency, you can make it up later with the lender’s Pass-A-Payment feature.

Solid credit preferred

While Huntington Bank doesn’t specify lending requirements on its website, the company’s annual SEC report for 2020 showed that the majority of its auto loan customers have credit scores of 650 or higher.

Starting APRs are high

Huntington Bank’s starting annual percentage rates, or APRs, on car loans are higher than what some other banks offer.

Your loan rate is based in part on your ZIP code. For a loan in Columbus, Ohio, the starting APR for a 2020 model is roughly 1 to 2 percentage points higher than the starting APRs of some other lenders. If your credit is in top form and you can qualify for a low APR, you may be able to find a better rate elsewhere.

A closer look at Huntington Bank car loans

Here are some other things to know about Huntington Bank auto loans.

• Huntington Bank auto loans are only available to residents of Illinois, Indiana, Kentucky, Michigan, Ohio, Pennsylvania and West Virginia.
• The bank doesn’t charge an application fee or prepayment penalty.
• You must borrow a minimum of $5,000.
• You can submit a joint application with your spouse.
• Loan terms range from 36 months to 66 months.

Is a Huntington Bank car loan right for you?

A Huntington Bank auto loan could be a good solution if you want the option of paying it back early without a penalty and if you want a say in your payment schedule. Selecting a weekly, monthly or bi-weekly payment option could help you line up your payments with your paycheck schedule. And if you plan to wipe out the debt as soon as possible, you don’t have to worry about being penalized for it.

But if a low interest rate is your top priority and you have good or excellent credit to help you qualify for one, you may want to look at another bank that offers lower rates.

How to apply for a loan from Huntington Bank

You can apply for a Huntington Bank auto loan on its website. You’ll want to have your personal information ready as well as your employment and housing information.

If you’ve applied during normal business hours, you should get an instant message and email to let you know if you’ve been tentatively approved or denied, or if the bank needs additional time to review your application. If you apply before 7 a.m. or after 10 p.m. Eastern time, you’ll receive the email during business hours.

Not sure if Huntington Bank is right for you? Consider these alternatives.

• Autopay auto loan: An auto loan through Autopay’s lender network could be an option if you have less-than-perfect credit.
• U.S. Bank auto loan: A U.S. Bank auto loan could be good for someone who wants a competitive rate and qualifies for the bank’s low starting APR.

Pros

• Multiple financing options
• You can apply for preapproval
• Considers a range of credit profiles

Cons

• Must purchase a used car from CarMax to be considered for financing
• No refinancing options available

What you need to know about CarMax Auto Finance loans

Headquartered in Richmond, Virginia, CarMax operates more than 200 used-car stores across the country. As a large used-car retailer in the U.S., CarMax Auto Finance offers auto loans to people who purchase a used car from a CarMax location.

Multiple car financing options

In addition to CarMax Auto Finance, CarMax has relationships with multiple third-party lenders. Having access to several lenders could help you find the best lending option for your financial needs.

These lenders include …

• Ally Auto
• American Credit Acceptance
• Capital One Auto Finance
• Chase Auto Finance
• Exeter
• Santander Consumer USA
• Wells Fargo Auto
• Westlake Financial Services

You can purchase a car only through CarMax

To finance a used car with a CarMax auto loan, you must buy the car from a CarMax dealership or store.

Considers a range of credit profiles

While CarMax doesn’t specifically list minimum credit approval requirements, CarMax says its financing sources accommodate most credit profiles. CarMax determines your eligibility by evaluating factors that include your application information, credit history, the vehicle you want to buy (its age, mileage and price) and your down payment amount.

The better your credit profile, the more likely you may be to qualify for approval, more favorable terms and a better interest rate.

A closer look at CarMax Auto Finance

Here are some other things to know about CarMax Auto Finance.

• Loan repayment terms range from 36 to 72 months.
• Most of CarMax’s financing decisions are available within 20 minutes.
• If you discover a better financing option within three business days, CarMax allows you to replace your loan with another financing option at no cost.
• You can add co-buyers to preapproval or finance applications.
• CarMax offers multiple ways to make a car payment, including online payment, mail, Western Union locations or MoneyGram Express Payments service.

Is a CarMax auto loan the right fit for you?

If you don’t enjoy negotiating with dealerships over your rates and terms, getting an auto loan from CarMax might be an attractive lending option for you.

CarMax bases your finance offer on factors that include your down payment on the auto loan amount and application information. If your credit isn’t great, your interest rate may be higher than what’s offered to people who have strong credit.

If you want to buy a car from a dealer other than CarMax, you’ll have to look for an alternate lender.

How to apply for a loan from CarMax Auto Finance

CarMax Auto Finance offers the ability to apply for preapproval for an auto loan. Just keep in mind that preapproval is not a guarantee of loan approval, and your loan terms and interest rate may be different once you complete a formal loan application.

But before you decide to formally apply for an auto loan with CarMax Auto Finance, it’s a good idea to check your credit and compare other loan offers. Understanding your credit can help set expectations — in general, lower credit scores will result in higher interest rates. And shopping around can help you find the best loan rate and terms for your needs. Read our article on how to get a car loan to learn more.

Not sure if CarMax Auto Finance is right for you? Consider these alternatives.

If you’re not sure a CarMax Auto Finance loan is right for you, here are some other options to consider.

• U.S. Bank auto loan: A U.S. Bank auto loan could be good for someone who wants competitive rates on a used-car loan.
• LightStream auto loan: LightStream may be a good option if you want to buy a new car or a used car from a private party.