A subprime auto loan refers to an auto loan given to someone with a subprime credit history, meaning a credit score below 600. Bad credit usually refers to someone with a credit score below 580. If you have bad credit and find a dealer or car lot that offers subprime auto loans, then you should be a good match. Some lenders refer to subprime and bad credit loans interchangeably. Auto lenders will almost always check your credit report. They use information from your credit report and credit score to decide what kind of terms to offer. Steer clear if you find a dealership that says it don’t conduct a credit check. It will likely have higher interest rates than other lenders because they’re assuming you have no credit or terrible credit. It may also charge excessive fees upfront or have other hidden costs. Credit unions are one of the best places to get a bad credit auto loan. Because credit unions are not-for-profit organizations, they don’t need to generate revenue the same way a for-profit bank does. Rates and fees at credit unions will likely be lower as a result.