Car loans for people with poor credit are available all over the place. Some of these loans are made especially for people with bad credit while others happen to fit the needs of those with bad credit and good credit. My suggestion is to explore all options to find the one that suits your needs and budget so that you don’t further damage your credit.

Individual Loans: You may be able to find car loans for people with poor credit simply by asking individuals. If you have bad credit than people may be leery of loaning you money. Reassure them by letting them know they can put a lien against the title until you have paid off the loan. They can also set an interest rate and payment plan that you both agree on. The easiest way to buy a car with an individual is to buy a car on payments from an individual. They hold the title or put a lien on it until you have actually paid off the loan. Make sure to ask them to report it to the credit bureau so that it has a positive impact on your credit.

Buy Here Pay Here: Many companies offer their own financing in the form of a buy here pay here plan. Instead of paying a bank or a dealership, the person makes their payments directly to the lot. Interest rates on these vehicles are often quite high so make sure it’s really worth it to you to buy a vehicle using this method. Also, whenever buying a car be sure to take it to a mechanic you trust. There’s nothing worse than making payments on a vehicle you can’t drive because it’s stuck in a repair shop. Or worse, not being able to afford to make the payment because you have to pay for the repairs on the vehicle.

First Time Buyers Program: If you’ve never bought a car on loan before, you may want to try to get into a first time buyers program. These programs sometimes provide for poor credit, but only to an extent. However, since the economy is in such bad shape people are trying to do whatever they can to make a sale and car dealerships are no different.

Cosigner: You may need a cosigner to get an auto loan. Find someone you trust who knows you well to do this for you. Make sure you can make your payments on time because their credit is on the line when they cosign for you. Your cosigner is taking a chance when they sign those papers. No one wants to make someone else’s car payment for them and that’s what they have to do to preserve their own credit of you fall behind.

There are many alternatives for car loans for people with poor credit, so don’t feel like you have to take the first one that’s offered to you. Do your research and find the best option for you, not for the seller.