Auto loans can be hard enough to get with decent credit, so what is a person with bad credit score supposed to do? First and foremost, you must know your exact credit score. These range numerically from 450-850. 850 being the best you can get. If you are somebody with a score closer to 450, you are in a tough position, but not out of help.

Someone who has better credit with a score closer to 800 (800 is almost a biblical number… not many people venture that high) has continually paid there bills daily and on time, on mortgage loans, auto loans, school loans, and even credit card debt. Your first plan of action if you do have bad credit is to find out what your credit score is, and how you can improve it. You can get 3 credit scores and all your account information for free online, if I remember correctly.

Now, you have all your items lined up, and you need a car desperately… where can you get an auto loan? There are a few places you can get your auto loan… Bank Loans are loans that you would seek from the bank that you currently bank with. This is easier because you are already a customer which may entitle you to cheaper rates. Next would be a Dealership Loan. I know some small dealers around me even offer there own financing in which you can pay them directly weekly, bi weekly, or monthly.

Most banks require a few things for auto loans from people with poorer credit. Those include: Down-payments- Some may require up-to a 30 percent down payment on the entire loan. Therefore, if you want a $10,000 truck, you must pay, at the time of purchase, $3,000. Co-signer: Without a decent credit score, financial institutions will see you as a risk and will want someone to guarantee the loan. If you fail to make your payments, the lender will seek out the co-signer to pay. Employment- Many Car Loan companies will want to see that you are actively employed and have been for a certain amount of time. You, of course, would be riskier.

Basic steps to fixing your credit: pay down all unhealthy credit balances. All these balances do is to hurt your credit score. Pay all past due bills immediately! Nothing will kill your chances for a loan faster than delinquency. Consolidate all bills, and structure your life so that even if you do lose a job, you have a healthy savings fund. And finally, Stop spending money you don’t have!