Bad Credit Auto Loans

Written by Liza Hartung
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Just because you have bad credit doesn't mean you aren't going to need some extra money now and then. Lenders realize this and have created ways for people with bad credit to get loans. If you weren't ever eligible for a loan, it would be very hard to improve your credit score. You can only get away from bad credit by making payments on time, all the time.

However, as some people will be working to get good credit for quite some time, you'll probably want to do some fun things in the meantime, such as purchasing a new car. Having bad credit shouldn't stop you from living your life. It should, though, cause you to take a step back and sit down with your finances and see what you can do to better your situation.

It's important that you don't step into another loan only to make your bad credit worse. You've got to have a plan to make sure that you can make your monthly payments. In fact, it's best advised that you come up with a way to pay more per month than is required. Stay away from the really fancy cars. You can get a great car that doesn't cost $50,000.

Know What You're up Against

Having bad credit means that you are likely to get higher interest rates than someone with good credit. You also might not be approved for the amount you were originally looking for. If that's the case, you might want to get a secured loan where you use equity in things that you own against the loan. Be careful, though--if you don't pay it back, the lender can take whatever you used as collateral.

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