Fortunately, there are a lot of companies out there willing to deal with people, like myself, who have a less than stellar credit rating. In my case, my credit score hovers just under 614. Thankfully, I am not by myself! I am in a category with over 40% of my fellow Americans who would be considered for sub-prime loans. Just because we have poor credit does not mean we are left to be ignored by financial institutions who would decide our collective fates! Or at the very least, whether or not we can get a new car to replace that old jalopy we are currently driving.

There are literally hundreds of sites devoted to sub prime auto loans. We may pay more in APR than a typical borrower with good credit, but it’s fairly easy to find manageable rates with companies who are in business for the sole purpose of making an auto loan happen for sub prime borrowers.

So where does that leave me and my aforementioned car dilemma? Well, I did a quick search on Google for car loans with bad credit. My search turned up a site with a free application process and after only a few days, I was contacted by a local Honda dealership and they told me that my application was approved! Even with a 609 credit score I was able to be approved! Now I have a brand new Civic, and because of the financing I got, my payments are manageable and I don’t have to worry about getting a third job!

Bad credit happens. But don't let bad credit stop you from getting the most out of life! 

The creditor determines whether someone fall into the category or not. When you’re looking for a Bad Credit Car Loan, typically, this number is around 620 and under as far as the score of your credit is concerned.

It’s likely that you’ll find it hard to find a person who will finance you if you fall below this average. However, the good news is there are a lot of lenders who offer a bad credit car loan. You may only end up paying higher rates when there is interest.

When you apply for car loans for bad credit, it is important that you obtain your free annual credit report and take the time to review all of the information contained on that report. You want to make sure that all of the outstanding accounts listed on the report are accurate.

If you see any difference, it’s essential to call the agency of credit report in writing and include all the evidence you have showing that the conclusion is incorrect.

It’s essential that all information on your credit record is correctly reflected if you want to be approved for a Bad Credit Car Loan. If not, you may fall into the category of “subprime”. Although this does not ruin your possibilities for a Bad Credit Loan For, but it may cause you pay much more than you initially planned.

It’s essential to know that you always have an option to shop around a bit when you’re ready to obtain a Bad Credit Car Loan. Actually, there are some lenders who want to help people with bad credit to get their desirable car.

If you want to find out how much you will be needed to pay a monthly car payment when you take a Bad Credit Car Loan, you may apply the use of car loan calculators.

The devices will help you to determine how much you must pay on your credit score as well as income. As you may see, it’s possible to get a Bad Credit Car Loan; it only needs a few simple know how.

Even if you aren’t ready to apply for an auto loan today, its important to implement many of these strategies immediately to ensure that you will get the best car loan later when you are ready.

1) Pay your bills on time so negatives won’t show up on your credit rating.

2) Keep a good credit rating by not over extending yourself with debt.

3) Keep tabs on what is on your credit rating. If you need to make changes, then take care of it now so it will be “clean” when its time to apply for an auto loan. You might think that a $19.00 debt that was sent to ‘Bend-Over-And-Take-It-Collection-Agency’ five years ago isn’t a big deal, but it is a very big deal to creditors. Negatives can result in your auto loan costing you hundreds or even thousands more over the life of your loan in higher interest rates, lesser terms and even in points.

4) Figure out how much of a monthly payment you can afford. Be sure to consider car insurance, gas and maintenance.

5) Make as large a down payment as you can to lower your auto financing interest rates and your monthly payments.

6) Figure out how much your current car is worth and how much you owe on it.

7) Avoid the finance department at the car dealer at all costs by applying for the best auto loans online. You will save money, time and grief on both your auto loan and the cost of your car. Its free to apply online without all the high pressure you will get at your dealer…and you can get approved fast.

Before signing any car loan paperwork, check to make sure you clearly understand everything.

9) For the best auto loans, and especially if you are buying your car from a car lot…    If you hit a wall at anytime during the process, whether its pressure from a car salesperson, or extreme pressure from the shark in the finance department — then stop immediately! Really. Don’t worry about being rude or whatever. Just get the hell out of there immediately before you get worn down and succumb to their pressure like someone being tortured to admit anything in a P.O.W. camp. Stop and get out!

• Get a car loan from family or friends.
• Get a loan from the car dealership.
• Get an auto loan from your own bank, credit union or online.

Keep in mind that you won’t be building your credit rating if you get a car loan from a friend or family. So for the sake of this article, lets concentrate on whether to get a car loan from the auto dealership, or from your own bank or online…

If you finance a car then you should know that you can almost always get a better car loan from an outside source like your own bank, credit union or online instead of through the car dealer. Sure, those 0% new car loans advertised are enticing, but the dealerships will rarely negotiate much on the price of the vehicle if you opt for one of those. Plus, by getting pre-approved for a car loan from your own bank, credit union or an online car loan, then you will know exactly how much car you can buy BEFORE ever appearing on the car lot.

This will give you a HUGE advantage when it comes to negotiating the price down and it totally simplifies the entire car buying process as it insulates you from the high pressure bully tactics often used in the car dealerships finance department…because this is THE place where they are looking for any way possible to extract more of your hard-earned money.

Hah hah…and you thought all the main car buying stuff happened out on the car lot!

Oh no, Understand that everything on the car lot was designed to wear you out and make you more receptive. Yes, all those questions about “how much can you afford each month?” (don’t tell them!) and all the “let me check with my boss” and all that waiting was designed for one thing…

The shark in the finance department!

Click here to read the rest of How To Finance A Car  >>

They have their victims, oops I mean customers, delivered to them on a silver platter.

Yessiree, make no mistake about it… Everything done to you on the lot – every questions asked – and all your answers to those prying questions are carefully considered and designed to prepare you for the big daddy guy or gal in the finance department.

If you do get your car financed through the dealership, then avoid telling them how much you want your monthly payments to be. Of course the amount of your monthly car payment will matter to you, but if you tell them (and the salesperson will ask!), then you will have instantly opened yourself up to a whole lot of manipulation. Be very careful of only concentrating on the monthly payment. You need to focus on the annual percentage rate (APR) and the length of the car loan and make sure they aren’t adding any extra points on to the front end of your car loan.

But what about a zero interest car loan?

Car dealers sometimes offer very low or no interest rate car loans for specific models. The downside to getting this kind of car loan is that you may not be able to negotiate a lower price on the car. These low interest loans are often used to entice you into the dealer but your credit rating might not allow you to even get one. Its important to know what is on your credit rating before going to the dealers (and take a copy with you) in case the salesperson tells you that you have a score that is lower so they can hike up your interest rate.

If you want to finance a car, then save yourself an immense amount of grief (and money!) by going to your own bank or credit union, or online. The easiest and simplest way is to finance a car online.

First of all, not all car dealers want to rip you off, but this is one car scam that is used almost daily by dishonest car dealers.

This scam happens in the car dealers auto finance department. What happens is that after negotiating the price of the car you want, the finance department will run a credit check on you. The salesperson or finance person will come back from who knows where and tell you that you that your credit score is too low and the only way they can get you the car you want is to get you a car loan at a higher interest…with points!

But maybe you have good credit…and can qualify for a low interest car loan?

The higher your credit score is (your FICO score), the lower the interest on your car loan will be. See, they are counting on you just taking them by their word that your credit sucks because many customers have no idea what their credit is like. So it is very important that you get your own credit report BEFORE going in to buy a new or used car.

The reason they use the bad credit scam is so they can get you into a high interest car loan so they can make money off of the extra points charged. Points are a percentage point of the entire loan. If the car loan is for $20,000.00, and they hit you with 3 points, then BAM, that car loan right away is going to cost you an EXTRA $750.00 – plus interest!

Click here to read the rest of The Bad Credit Scam  >>

• Get your credit report and take it with you to the car dealer…IF…you are considering having them handle the financing. This way you will know upfront what your credit report is like, and if its good, then you will know they are lying if they try hitting you with the bogus “your credit sucks” line. Having your own credit report also keeps you from having needless credit checks with too many inquiries – which can effect your credit for awhile.

• Get pre-approved for a car loan BEFORE you start looking for a car with your own bank or credit union.

• Unless you have a great relationship with your bank or credit union, often the fastest and easiest way to get a car loan is to apply online.

Once approved for your car loan, the lender will tell you exactly how much they will lend you and will often give you a check. This way you won’t find yourself getting caught up in the bad credit scam after making an offer (and perhaps leaving a non-refundable deposit) on a car trying to get a loan for an amount that won’t work for you.