In the past for people with bad credit, car loans were out of reach unless you put down a huge down payment. Auto dealerships would just turn away most people with a low credit score (FICO). Many perspective car buyers were caught in that humiliating, mortifying position of having to leave the dealership; being told that they were not credit worthy enough for auto finance. Fortunately, auto finance has changed since then. Today, nearly all auto dealers have a “special finance” car loans unit that focuses on making bad credit car loans for consumers with a low FICO credit score.

Inasmuch as you have a low FICO credit score, if you are in the market for auto finance, you will need to consider no credit car loans. Alas, bad credit car loans generally come with steeper interest rates and other unfavorable auto finance terms. Aside from comparing auto dealerships to locate the optimum interest rates and auto finance terms, there are a couple things that you can do to get a good deal.

First, do you know anyone that can be a co-signer to your auto finance contract? A co-signer with a good or better FICO credit score would probably put you in to car loans with a good interest rate and there would be no need for bad credit car loans.

Second, get a copy of your credit report from the three primary credit reporting agencies. You are entitled to a free copy from each annually. Dispute any bad entry that you disagree with as being inaccurate or false directly with the credit reporting agencies that are listing those items. You may be able to get many items removed, thereby raising your FICO credit score and, making more favorable guaranteed car loans available to you.

Lastly, muster up as large of a down payment as possible. The higher your down payment is, the more you can twist the car dealer’s arm for a lower interest rate and better bad credit car loans terms.

The main point I want to make is, when considering bad credit car loans, take your time and do your research. Don’t accept the first offer that comes in your direction. There are lots of choices. Do the math and you will be happy that you did.