10 Best Auto Refinance Companies of 2024

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*Rates and APYs are subject to change. All information provided here is accurate as of March 28, 2024.

The best auto refinance companies offer transparent, reliable service to consumers looking for competitive rates from a variety of lenders, including banks, credit unions and non-depository financial lenders.

Your potential savings depend on several factors, such as your credit score, annual income and the outstanding loan amount. The importance of each factor will depend on the specific auto refinance company.

Read on to see our top picks for the top auto refinance lenders of 2024 and learn how to get the best auto loan terms that fit your needs.

Money’s Main Takeaways

• LendingTree has the lowest starting auto refinance rate this month at 4.50% APR

• PenFed is our pick for best direct lender for its competitive APR and lack of extra fees

• iLending offers excellent customer service by including vehicle title changes and previous loan payoffs in its document fee

• OpenRoad Lending is the best auto refinance company for borrowers with low credit scores

Our Top Picks for Best Auto Refinance Companies of 2024

The companies listed below are in alphabetical order.

• Auto Credit Express - Best for Recent Bankruptcies
• Digital Federal Credit Union (DCU) - Best for Newcomers to Credit Building
• Gravity Lending - Best for Fair Credit
• iLending - Best for Customer Service
• LendingTree - Best Marketplace for Fair Credit Scores
• LightStream - Best for Any Kind of Vehicle
• myAutoloan - Best for Highest Average Savings Claim
• OpenRoad Lending - Best for Low Credit Scores
• PenFed Credit Union - Best Direct Lender
• RateGenius - Best Marketplace for Good Credit Scores

Best Auto Refinance Company Reviews

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Why we chose it: Auto Credit Express works with borrowers with credit scores as low as 525 and borrowers with bankruptcies on their credit histories.

Lenders available through Auto Credit Express factor in a borrower’s current financial responsibility when considering loan approvals, which is helpful for individuals still working to improve their credit scores. Additionally, even if you have a bankruptcy or repossession on your credit report, Auto Credit Express may still be able to help you secure an auto refinance loan.

Consistent on-time payments to your original loan for at least six months, for example, show lenders financial discipline. This can help your chances of approval if you have a low credit score.

Auto Credit Express is rated excellent on one third-party review site. The company also has an A+ rating on the Better Business Bureau (BBB) website.

Read our full review of Auto Credit Express Auto Refinance>>>

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Why we chose it: DCU accepts auto refinance loan borrowers with little to no credit history. In fact, the credit union offers personalized guidance throughout the process.

While some borrowers prefer a fully digital experience, others may find value in personalized guidance. Customer representatives from Digital Federal Credit Union (DCU) provide individualized assistance, which can be especially helpful for borrowers with little or no credit history. A representative will contact you by phone to walk you through the process.

You can enjoy a 0.50% discount on your rate by maintaining a DCU bank account with direct deposits of at least $500 per month and making at least five transactions monthly. Additionally, fully electric vehicles qualify for an extra 0.25% off. It’s important to note, though, that DCU requires excellent credit to qualify for the lowest available rate.

By prequalifying with only a soft credit pull, you can view loan offers. Membership isn’t required for this process, but if you decide to formally apply and accept a loan offer, membership in the credit union is necessary. However, becoming a DCU member is not a complicated process. You simply need to make a $5 donation to a DCU-affiliated nonprofit organization.

Read our full review of Digital Federal Credit Union (DCU) Auto Refinance>>>

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Why we chose it: Gravity Lending partners with lenders that accept fair credit borrowers. Additionally, the company doesn’t charge a documentation fee to process your auto refinance loan.

Gravity Lending operates a marketplace of about 70 lenders, which includes credit unions, banks, hedge firms and other financial institutions. Despite not being a direct lender, the company handles loan processing and doesn’t charge any fees for the service.

To qualify, your vehicle can’t be older than 10 years, and mileage cannot exceed 100,000, which is slightly lower than that of other companies we evaluated. Additionally, you need a minimum monthly income of $2,000. Qualified borrowers can also benefit from a payment deferral of up to 90 days.

Positive customer feedback on third-party review websites highlights the personalized assistance provided by loan officers.

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Why we chose it: iLending is one of the few auto refinance companies that handles the necessary vehicle title changes and pays off your previous auto loan. Additionally, iLending offers a fully Spanish-language auto refinance loan process for those who prefer Spanish.

Many companies charge a document fee or origination fee for auto refinance loans. However, iLending stands out for including multiple services in that fee, like changing the title on your vehicle and paying off your previous loan. If your refinance loan is with a credit union and a membership fee is required, that’s covered as well.

The starting APR at iLending is competitive and only a soft credit pull is required to receive potential loan offers. Once you submit your information, a loan consultant will call you to discuss your needs. Depending on your financial situation, you may be able to skip up to 90 days of loan payments.

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Why we chose it: LendingTree is our pick for best marketplace for its varied lender network, which covers a wide range of credit scores and auto refinance loan needs.

LendingTree offers a network of approximately 40 lenders across the U.S., including banks, credit unions and other financial institutions. When you apply — which requires only a soft credit pull and won’t impact your credit score — you receive up to five matches.

On the website, you can find important lender details, such as starting APRs, loan terms, loan amounts and the minimum credit score required. However, some pertinent information, such as loan closing costs, is not available. Additionally, not all lenders are listed. If you get an offer you like, be sure to check these details before completing the loan application process.

Read our full review of LendingTree Auto Refinance >>>

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Why we chose it: LightStream offers auto refinance loans for all vehicles, regardless of the make, model, year or mileage.

LightStream is a direct lender of auto refinance loans that stands out due to its lack of restrictions on the eligibility of the vehicle. Unlike many other auto refinance companies, which typically don’t work with cars older than 10 years or with more than 120,000 miles, Lightstream welcomes borrowers to apply for auto refinance loans regardless of the vehicle's specifications.

Also, LightStream’s auto refinance loans are unsecured, allowing you to retain your vehicle title when you refinance. According to a company representative, LightStream focuses on underwriting the borrower, rather than solely evaluating the vehicle. Additionally, LightStream does not charge an origination fee for its auto refinance loans.

However, it’s worth noting that LightStream’s starting annual percentage yield is a bit higher than that of other companies we evaluated. It’s also important to keep in mind that to secure the lowest available rate, you must have excellent credit and enroll in AutoPay.

Read our full review of LightStream Auto Refinance>>>

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Why we chose it: myAutoloan has the highest average monthly savings claim of the companies that made our top picks list.

MyAutoloan advertises an average monthly savings claim of $150, higher than the industry average of $100 to $125. While the company accepts credit scores as low as 575, borrowers with FICO scores of at least 620 receive the most favorable rates, according to myAutoloan representative Staci Bailey. The company also requires a minimum monthly income of $1,800.

To get an idea of your potential APR, try the company’s Auto Loan Interest Rate Calculator, which doesn’t require personal information. You can also prequalify for an auto refinance loan using an online form. MyAutoloan guarantees up to four offers based on the accuracy of the provided information.

MyAutoloan also provides options for lease buyouts and cash-out refinance loans. Depending on your creditworthiness, you may qualify for payment deferral of up to 90 days.

Read our full review of myAutoLoan Auto Refinance>>>

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Why we chose it: OpenRoad Lending connects customers to banks and other financial institutions that accept auto refinance borrowers with credit scores as low as 500.

OpenRoad Lending is one of few auto refinance companies that offers options for consumers with less-than-stellar credit. This includes subprime borrowers, which account for nearly one-third of U.S. consumers, according to a recent study from the credit bureau Experian.
In fact, OpenRoad Lending works with borrowers with credit scores as low as 500.

Additionally, customer service agents are available to anyone in need of guidance throughout the auto refinance process, a company representative tells Money. Co-borrowers are also permitted, which could improve the chances of approval.

Vehicles can be up to 13 years old, which is more flexible than the 10-year industry average. In terms of mileage, OpenRoad is also more generous, accepting vehicles with up to 155,0000.

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Why we chose it: PenFed Credit Union takes the title of the best direct lender for auto refinance loans because it doesn’t charge document fees or origination fees, and its annual percentage rates are competitive.

Pentagon Federal Credit Union (PenFed) is a direct lender with no extra fees added to its auto refinance loans. Many auto refinance marketplaces impose document fees or origination fees, and in return, the company handles the original loan payoff. With PenFed, you’re responsible for this task, as well as changes to the vehicle title. Still, the lack of fees helps cut your total loan repayment.

You can see loan offers on the credit union's website without negatively impacting your credit score. PenFed allows for auto refinance loans of up to $150,000 or 125% of your current loan balance. However, to qualify, the vehicle cannot have more than 125,000 miles.

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Why we chose it: RateGenius offers one of the most extensive lender networks in the auto refinance industry for borrowers with credit scores of 660 and higher.

RateGenius auto refinance marketplace stands strong among competitors. Its approximately 200 partner lenders include credit unions, regional banks, national banks and finance companies. The vast majority of these lenders accept credit scores of 660 or higher, according to a RateGenius representative. (FICO designates scores of 670 or higher as good credit.)

You can prequalify for an auto loan refinance on RateGenius with only a soft credit pull. Lease buyouts and cash-out refinance loans are also available through the marketplace’s partner lenders. Additionally, many of these lenders accept co-borrowers, which can improve your chances of approval if the person in question has good to excellent credit.

On its Better Business Bureau (BBB) page, RateGenius has an A+ rating with more than 700 reviews that are almost entirely positive. Many customers were pleased with the service offered and noted the ease of the process from application to loan funding.

Read our full review of RateGenius Auto Refinance>>>

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Other Auto Refinance Companies We Considered

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Auto Approve

Borrowers approved for auto loan refinance through Auto Approve save an average of $148 monthly, company representatives tell Money. You’re not required to provide your Social Security number to receive a quote. Auto Approve’s minimum FICO score allows for low credit applicants; the minimum score required to apply is 580. For monthly income, the company requires a $2,000 minimum.

Why Auto Approve didn’t make the cut: The document fee of $488 is a little higher than what’s charged by other companies.

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Bank of America

Bank of America offers auto refinance loans starting at $7,500, or $8,000 in Minnesota. Loan terms are 42 - 72 months. Its average monthly savings claim is $60, which is significantly lower than other companies we evaluated.

Why Bank of America didn’t make the cut: Its annual percentage rates are higher and its monthly savings claim is lower than many other companies in our top picks.

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Capital One

Capital One offers potential customers the opportunity to pre-qualify for an auto loan refinance with only a soft credit pull. The online application for an auto refinance loan takes only about five minutes to complete. Capital One also has an app available (called the “Auto Navigator”) for iOS and Android, through which potential customers can shop for cars and financing options.

Why Capital One didn’t make the cut: Auto refinance borrowers may be required to pay down the balance of their current car loan if their payoff amount is higher than the company’s limits. There’s also no information about starting annual percentage rates for auto refinance loans on its website.

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Caribou

Caribou is a digital platform that connects borrowers with a vast network of partner lenders — primarily credit unions and community banks — offering some of the best auto refinance loans. However, Caribou charges a document fee for its service, and there’s no guarantee the lender you ultimately work with won’t charge additional fees on top of that.

Why Caribou didn’t make the cut: Caribou’s document fee of $399 is higher compared to other companies we evaluated, and the company doesn’t offer any services (title change, previous loan payoff) with that fee.

Read our full review of Caribou Auto Refinance>>>

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Consumers Credit Union (CCU)

Consumers Credit Union (CCU) is a direct lender for auto refinance loans. You must be a member of CCU to receive a loan, but the process is relatively easy: Pay $5 to the Consumers Cooperative Association, then open and maintain a CCU savings account ($5 minimum). However, the company hasn’t responded to our requests for an interview, so we can’t confirm important auto refinance details, such as documentation fees or credit score requirements.

Why Consumers Credit Union didn’t make the cut: Consumers Credit Union lacks transparency about its credit score requirements, loan terms and fees, so we can’t adequately compare it to other auto refinance companies.

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LendingClub

While its average customer has a FICO score close to 700, LendingClub has a network of lenders in its auto refinance marketplace, many of which consider borrowers with credit scores in the low 600s. (These numbers were provided to Money by a LendingClub representative.)

LendingClub charges no origination fee, processing fee or down payments on its auto refinance loans. However, loans may be subject to fees from the loan lenders.

Why LendingClub didn’t make the cut: Its average monthly savings claim of $78 is lower than the companies in our top picks.

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Navy Federal Credit Union

Navy Federal Credit Union offers auto refinance loans at competitive rates, especially for borrowers with excellent credit. Rates vary by mileage and model year, with lower rates for vehicle model years 2022 and newer with 30,000 miles or less. Vehicles that are more than 20 years old may be eligible for auto refinance loans, but starting APRs are significantly higher.

Why Navy Federal Credit Union didn’t make the cut: Navy Federal’s average savings claim of $62 is lower than many other companies we evaluated.

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PNC Bank

PNC Bank is a regional bank that lends directly to borrowers. You can pre-qualify for an auto refinance loan with only a soft credit pull for loans from $5,000 to $100,000. Loan terms range from 12 to 84 months. While PNC Bank does not offer title transfer services for its borrowers, the lender does handle paying off the existing loan with the previous lienholder.

Why PNC Bank didn’t make the cut: Compared to other companies in our top picks, starting annual percentage rates for auto loan refinance at PNC Bank are a bit higher than average.

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RefiJet

RefiJet almost made our top picks for its slightly higher-than-most maximum mileage (150,000) and low starting annual percentage rate for borrowers with excellent credit. The company offers loan options for borrowers with poor credit, too. Also, depending on creditworthiness, borrowers may be eligible to defer up to three months of payments on their refinanced loan.

Why RefiJet didn’t make the cut: RefiJet’s document fee includes paying off the previous lienholder and changing your vehicle title, but the fee ($495) is slightly higher than other companies that offer the same service.

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Upstart

Creditworthiness at Upstart is determined not only by your FICO score, Auto Refinance General Manager Val Gui tells Money. The company’s proprietary AI also considers 1,000-plus other factors, like your savings, employment and the highest level of education you’ve completed.

Why Upstart didn’t make the cut: Because Upstart doesn’t provide a starting APR without entering personal information, we’ve decided to leave it off our top picks for now.

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Auto Refinancing Guide

Refinancing can give access to better interest rates when your credit history has improved since taking out your current auto loan. However, it’s not a decision to be made lightly, as it may mean additional fees and a hit to your credit score.

How does refinancing a car work?

Refinancing a car works in two ways: traditional auto refinance and cash-out refinance.

Traditional auto refinance is when you replace your existing auto loan with a new car loan that has a better annual percentage rate or lower monthly payments. You pay off your previous loan using the new auto loan.

With a cash-out refinance, you take out a new loan to cover your original loan, but you also receive an additional amount of money that can be used for any purpose.

Traditional auto refinance

Refinancing a car generally means taking out a new loan to pay off the balance on your existing vehicle loan, ideally for a lower rate. Since your original loan is replaced by a new financial obligation, you gain a new APR and new term length.

As an added bonus, your car insurance premiums are likely to go down as well. If you’re looking to change insurers, you can also check out our list of the best car insurance companies.

Cash-out auto refinance

A few auto refinance companies also offer cash-out auto refinances, in which your new loan covers your existing balance and provides an additional amount of money. While a cash-out refinance may have lower interest rates than other options, such as personal loans or credit cards, your monthly payments will go up. This type of loan also has a higher risk of going upside-down.

Auto refinancing pros and cons

Auto refinancing requirements

Before beginning the process, it’s important to make sure refinancing is the right solution for you and whether you meet the qualification requirements. Carefully consider the following:

• Your existing loan’s prepayment protocol - Check your existing auto loan agreement to find out if you’ll be penalized for paying early. (This is called a prepayment penalty.) If so, crunch the numbers to see whether an auto refinance makes sense.

• Loan balance versus your car’s market value - Your loan balance is higher than the car’s market value. If you’re “underwater,” or owe more than the car is worth, many lenders won’t consider you for an auto refinance loan. (You can check your car’s value on Kelley Blue Book.)

• Vehicle age and its mileage - Auto refinance lenders have restrictions you’ll have to meet. Many won’t offer loans for cars more than 10 years old or that have over 120,000 miles.

• The status of your current loan payments - Your loan payments should be up to date. If you’re behind on payments, many lenders won’t consider you a viable candidate.

• The balance of your current loan - Each lender has a maximum and a minimum loan amount they’ll refinance. If your loan’s current balance is too low or too high, you may not qualify. Many loan providers also have minimum loan amounts (and maximums) to consider.
• The kind of car you have - Generally, auto refinance companies won’t refinance cars that are “branded,” meaning rebuilt, salvaged or commercial vehicles.

When can you refinance a car loan?

Deciding when you should refinance your loan depends on a number of factors. While a refinance is technically possible even on a new loan, there are some conditions under which it makes the most sense.

When your current deal isn’t great

Thanks to global shipping issues and high demand, and if you didn’t do some careful comparison shopping between lenders or dealerships when you bought your car, your loan may not have the best repayment terms or rates.

For instance, if your current APR is around 20-25%, you might be able to get a better offer by shopping around. This is particularly true if your loan is two years older or more, as many loans with high APRs charge most of the interest amount during that time period.

When your credit score has gone up

An improved credit score will likely give you access to much better repayment terms and lower interest rates. If your score was 640 when you received your original vehicle loan, your credit score was considered fair by FICO standards, and you likely committed to a high annual percentage rate. However, once you reach good credit (670) status or better, auto loan refinance companies may offer a better annual percentage rate and more favorable repayment terms.

When your current loan payments are too high

An auto loan refinance provides an opportunity to lower your monthly car payment. This is achieved through extending the life of your loan, which means you’ll pay more interest over the long run. But for those who need more room in their monthly budget, a drop in their car payment could be helpful.

For example, consider an original loan for $45,000 with a term length of 60 months at a 6.3% annual percentage rate. The monthly payment for this loan would be $876. If you refinance at 84 months at the same annual percentage rate, your payment drops to $664 — a savings of more than $200 monthly.

However, a longer term means you’ll pay more interest than you would have with the original loan. In the first scenario, the interest total is $14,175. Extending the loan term to seven years as opposed to the original five years means you’ll accrue $19,845 in interest owed — an increase of $5,670.

How to refinance a car loan

Once you’ve weighed your options and decided a refinance of your current loan is the way to go, follow these simple steps.

• Check your credit score - If you have good credit, you'll likely get a better deal. This may be a good time to ensure there is no incorrect information in your credit report.

• Gather all the information about your current auto loan - Having all your information at hand will help speed the application process.

• Research new lenders and compare rates - While it may take some time, thoroughly researching auto loan refinance lenders and loan offers to find the best offer can not only help you compare rates, but also identify any potential red flags. You can also see whether your current lender offers a competitive auto loan refinance option, but keep in mind that some lenders will not refinance loans from their own company.

• File for prequalification - Getting a pre-approval, when available, presents you as a good candidate for a refinance.

• Submit an application - Once you've gathered all your documents and have chosen a lender, it's time to apply. Many lenders offer an online application.

• Evaluate the terms - Carefully read the fine print about loan terms. Check whether you can keep your current insurance policy under the new lender’s requirements.
• Finalize the loan - Remember to keep making your payments on your existing auto loan until the new auto refinance loan is finalized.

Documents needed to refinance your auto loan

To refinance any kind of loan, some documentation is required. These pertain to personally identifiable information, income, residence and your car’s specifications, among others.

Here’s a detailed list:

☑ Social Security number
☑ Employment information
☑ Residence information
☑ Driver’s license
☑ Car registration and mileage information
☑ Proof of insurance

Does refinancing a car hurt your credit?

Refinancing a car can have a temporary impact on your credit score. When you apply for prequalification to assess potential offers, lenders typically conduct a soft pull, which won’t hurt your credit score. However, when you formally apply for an auto refinance loan, lenders will perform a hard pull, or a hard inquiry, which may lower your credit score.

To mitigate the potential impact on your credit score, make sure to shop for loans within a 14 to 45-day window. Credit bureaus will count these inquiries as a single pull, minimizing the impact. Additionally, the effect of a credit pull typically drops off in about two years.

Note that making on-time payments on your auto refinance loan can actually improve your credit score in the long run; this shows lenders you’re a responsible borrower.

If you’re still unsure about the difference between a hard or soft credit inquiry, read our explainer here.

How to refinance a car loan with bad credit

You must have a minimum credit score of 640 if you hope to get the lowest rates on an auto refinance loan. However, just like when you seek to get a car loan with bad credit, there are lenders that specialize in auto loan refinance for bad credit borrowers. Here are some cases in which refinancing may still be helpful, even if you have poor credit:

• If auto loan rates have gone down - Even with bad credit, you may still be able to find a lower rate or better loan terms if the market has improved since you purchased your original loan.

• If your goal is a lower monthly payment - If your main driver in refinancing your auto loan is decreasing your monthly payment, this may mean extending your loan term. The downside is that this will extend the life of the loan, and you’ll therefore pay more in interest as well.

If you’re determined to refinance your car loan despite a spotty credit history, follow the steps outlined above. It may make sense to check out competing offers on an online marketplace of lenders that refinance auto loans, such as LendingTree or RateGenius. You may also be able to get better rates with a lender that allows you to add a co-signer to your loan.

Another option is to consider debt consolidation, which can streamline your loan payoff strategy.

Finally, if you can’t find a good deal, taking steps to fix your credit may end up being your best move in the long run. An improved credit score will affect every area of your finances, not just your auto loan refinance offers. While most credit repair strategies are possible to do yourself, if the time commitment is too high, you may want to check out our list of the best credit repair companies.

Auto Refinance Glossary

How We Chose the Best Auto Refinance Companies

To create our list of the best auto refinance companies, we conducted more than 300 hours of research and vetted companies according to multiple data points. When looking for the different auto refinance companies in the industry, we:

• Compare annual percentage rates - We search for the most competitive rates in the industry.

• Research company offerings - Not all auto refinance companies are the same, and so we investigate each company’s offerings independently.

• Analyze eligibility requirements - We categorize auto refinance companies based on eligibility requirements, making sure we offer options for a range of financial situations.

• Evaluate the customer experience - We review each company’s complaints with the Consumer Financial Protection Bureau (CFPB), Better Business Bureau (BBB) and the Federal Trade Commission (FTC). We also study third-party review sites for customer feedback.

• Conduct interviews with company representatives - We regularly speak directly with representatives from multiple auto refinance companies to confirm data and get additional details about fees, the application process and more.

• Audit financial stability - We consider each company’s financial stability to ensure the company can meet their refinancing obligations.

Although we always try to include accurate and up-to-date information on regulatory and legal actions, we don’t claim this information is complete or fully up to date. Annual percentage rates are subject to change. As always, we recommend you do your own research as well.

Summary of Money’s 10 Best Auto Refinance Companies of 2024

The companies listed below are in alphabetical order.

• Auto Credit Express - Best for Recent Bankruptcies
• Digital Federal Credit Union (DCU) - Best for Newcomers to Credit Building
• Gravity Lending - Best for Fair Credit
• iLending - Best for Customer Service
• LendingTree - Best Marketplace for Fair Credit Scores
• LightStream - Best for Any Kind of Vehicle
• myAutoloan - Best for Highest Average Savings Claim
• OpenRoad Lending - Best for Low Credit Scores
• PenFed Credit Union - Best Direct Lender
• RateGenius - Best Marketplace for Good Credit Scores