An auto loan can fund a new or used car, a vehicle lease buyout or a refinancing package. To determine approval, lenders look at the borrower’s credit score, current income, debt-to-income ratio and down payment amount. Our partners at ConsumerAffairs researched the best car loans to help make your vehicle purchase easier.
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With hundreds of companies lending billions in car loans each year, there are many options for consumers to receive auto financing. Most banks, online lenders, credit unions and dealerships offer auto loan services. While it’s tempting to begin shopping immediately, setting up financing and getting pre-approved before looking for a car:
Provides an opportunity to compare loan offers
Determines your budget before shopping
Saves time at the dealership
Gives you additional leverage when negotiating price
Lets you shop at multiple dealers
Since pre-approval often requires a hard credit pull, it’s important to be ready to buy a car. If multiple lenders request a credit report at one time, it only counts as one hard credit pull, so be sure to complete this step with lenders within one week. Consumers should aim to get pre-approval from two to three lenders to compare rates and leverage buying power.
Qualifying for car loans in Tulsa
Lenders have different financing requirements to qualify a consumer for an auto loan, but all institutions require proof of identity, annual income and auto insurance. While several factors contribute to what a lender is willing to offer, your credit score is the most significant factor for determining the annual percentage rate (APR) of your loan. The average APR for auto loans ranges between 3 and 10 percent.
Average APR (new car)
Average APR (used car)
781 - 850
661 - 780
601 - 660
501 - 600
300 - 500
While your APR heavily affects the total cost of the loan, other things you should look at when comparing loans include:
Loan term: Most auto loan terms are between 36 and 72 months, although some terms can be as long as 84 months. While long-term loans have lower monthly payments, they have a higher total cost because of the additional interest accrued.
Down payment: Paying more upfront lets you reduce your monthly payments and the length of your loan. A more substantial down payment may also help you secure a lower APR.
Additional fees: Lenders may charge upfront fees such as a loan referral or documentation fee. Be sure you know what additional costs apply to your loan.
Prepayment penalties: Find a lender who allows you to pay your loan off early if you choose. Some lenders charge penalty fees if you pay off your loan before the term is up.
Getting a car loan with bad credit in Tulsa
Most lenders require a credit score of 620 or higher to initiate an auto loan, but there are options if a consumer has a poor credit score. Many online lenders specialize in working with borrowers with a poor credit history, though you will pay higher interest rates.
Borrowers with poor credit may be able to receive a better interest rate by consistently paying bills on time for several months, which improves the overall credit score, or by saving as much as possible to put toward a down payment. You can also refinance your car once you’ve raised your credit score.
Other options include having a friend or family member with strong credit co-sign your loan. While this lets you leverage their credit for a better offer, they are responsible for your loan if you default.
LightStream lets you focus on your purchase instead of financing by offering high borrowing limits and low rates to qualifying customers. The company has an easy online application and can provide same-day funding. Plus, for every loan given, LightStream plants a tree. Tulsa customers appreciate the quick response and excellent customer service.
Auto Approve, an auto-refinancing company, provides each of their customers with an individual loan consultant to locate lenders, handle approvals and deliver loan packages. Refinancing is available for cars, trucks, SUVs, motorcycles and RVs. Tulsa customers praise Auto Approve’s quick, efficient process.
At LendingTree, consumers can apply for a variety of auto loans — including purchasing, refinancing or lease buyout — with loan terms ranging from one to seven years. The company works with a network of lenders to help you find the best loan. Tulsa car buyers appreciate the ability to compare loans and the site’s lender reviews.
myAutoloan.com is an Internet-based financing marketplace offering five types of auto loans to Tulsa residents: new car, used car, vehicle buyout, private party (person-to-person) and refinancing. Loans terms range from two years to six years and are typically determined by the age and mileage of the vehicle.
Capital One offers auto loans and refinancing, and the company provides a vehicle marketplace to help borrowers find the perfect car. Consumers can see if they pre-qualify without impacting their credit score, and reviewers in Tulsa appreciate how Capital One’s representatives educate their customers on how to reduce interest and pay off loans early.
ConsumerAffairs content is intended to be used for general information purposes only. Before you make any investment, it is very important to do your own analysis based on your own personal circumstances and consult with your own investment, financial, tax and legal advisors.