Buying a car should be an exciting experience, not be marred by poor credit that is keeping you from obtaining reasonable rates on your car loan.  The dream of driving your very own car in your name is a lifelong passion for many people.  Your car is probably the second-highest purchase you will ever make, second only to a house.  Those arranging for car finance come from different financial backgrounds and car financing companies are here to offer you the best rates they can on your loan so your goal of purchasing your dream car can be realized.

Despite how car financing companies may initially sugarcoat the bad credit loan options, there is no way to secure a rate on your loan with poor credit that will be as low as those with a high credit score.  That being said, there are many auto loan companies willing to work with you even if you have low credit.  Interest rates overall on loans are quite low right now because of the economic recession.  Car dealers and lenders understand the crunch and are doing what they can to give borrowers a break where they can.  There may even be room for negotiating interest rates, especially if your credit score is high enough.

If you hold a credit score that is higher than 650, any car financing company in the country will be willing to offer you competitive interest rates because they trust your ability to pay off the loan.  In this situation, everyone wins because you benefit from low rates and the lending company makes a profit without worrying about your ability to pay.  If your credit score is under 600, you may be eligible for bad credit loans.  Your rates will be higher, but if you have money for a down payment, you may able to obtain lower interest rates on your car loan because you will need to borrow less money.

Having a poor credit score can haunt you for years, so it is simply better to learn how to build good credit before it ever becomes a problem.  Having good credit means that your payment history, employment, residential status and salary help you to be a good candidate for a low-interest car loan.  The best way within your control to keep a good credit score is to pay your bills in full and on time.  Live within your means and never borrow more than you can afford to pay back.