"Horrible credit" car loans can be tricky to get approved--a fact that could well leave you vulnerable to unethical lenders. If you've gone through bankruptcy or a foreclosure or simply have a poor credit history, you may realize how hard it is to get a good interest rate or a loan approved without collateral. A loan to buy a car that you need is not necessarily out of reach. But while you're looking for that low-interest-rate auto loan from a friendly lender who won't judge you or turn you away because of your bad credit history, be careful not to be taken in by con artists, scam artists or fraudsters.

Bad credit car loan scams abound these days and are advertised by mail, in newspapers, by phone, on the radio, on television and on the Internet. Learn here how to recognize signs of a scammer or unethical car loan lender when you apply for that loan.

Before you seek financing for a car, learn what kinds of business practices are suspect. It's a good idea to be careful if you're considering buying a car with:

• Very high-interest loans that you may not be able to pay.
• Advance-fee loans or credit cards demanding up-front payment--offering credit or cash as a lure to those with a poor credit score, but not delivering the product promised. See further information below on advance-fee loans.
• Offers for pre-approved car loans you receive in the mail after a bankruptcy discharge or foreclosure.
• Payday loans.
• Pawnshops.
• A used car dealership that claims that it costs less to finance a car than to pay cash. Financing a car has its advantages, but saving money is not one of them.

Advance-fee scams are all too common these days. Signs that you're being offered an advance-fee car loan as part of a scam include:

• The lender's name sounds suspicously like an established and legitimate lender's name, but is not the same.
• The lender only has a P.O. box for its address and whose number isn't in the phone book.
• The lender isn't registered in your state, if you're in the U.S. You can find out whether a lender is registered in the state in which you live by calling the state Attorney General's office.
• The lender doesn't seem to care that you have a horrible credit history and shows no interest in obtaining your credit report or verifying that you have good credit
• Though not wanting to see your credit history, the lender asks for your bank account number or social security number.
• The lender asks for money up front in a sneaky way, such as by claiming it's a processing fee, for insurance, or as a condition to getting a pre-approved loan. This is different from legit lenders requesting application fees or fees for obtaining your credit report, which are stated up front and subtracted from your borrowing amount.
• A telephone offer for a loan. It's against the law in the U.S. to promise a loan to a consumer by phone and request money for it before the loan is given.
• A lender who requires you to wire money using wire transfer.
• A lender who asks you to pay with money orders.
• A lender who asks you to pay an individual person, rather than a business.
• A lender whose only credentials are that they were recommended to you by someone you trust or had a sophisticated or professional-looking ad in the newspaper, on the radio, on television, or on the Internet.

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So if you have bad credit, what do you do if you need to finance a car? There are no simple solutions. But here are some tips that could help you finance your vehicle purchase.

As a rule when purchasing a car for which you'll need financing, your motto should be to "be prepared." Don't walk into the car dealership cold. Don't fall into the trap of assuming "I won't get any credit, so I might as well not try the banks or credit unions." Try different lenders. Investigate current interest rates.

Here is information on where to apply for car loans if you have bad credit. Some lenders are better than others. Know where to go first, to get the best rates you qualify for.

And know what your credit history is--get a copy of each of your credit reports. Lastly, you should start fixing your credit score right now by assuming good credit habits.

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Financing a used car is a special case. People who cannot afford a new car are frequently the ones who need auto financing the most desperately. Many consumers with horrible credit who hope to get a fair deal end up getting talked into expensive dealer financing at the used car lot without exploring other, lower-interest options.

But it's definitely worth it to talk to legitimate lenders before you set foot on the lot. Once you see a car you like, don't let the car salesman push you into getting financing right there. Talk to a at least a credit union--credit unions have some of the lowest rates for used cars--about getting a car loan, letting them know how much the car costs, its condition and how much of a down payment is requested. And whatever you do, don't sign a finance contract that has lines left blank, for any reason.

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