While it is never easy to apply for a loan when you have bad credit it is still possible to receive these loans.  However, there are several steps you will want to follow when searching for a car loan.  Most car dealerships will not let someone with poor credit finance a new or used car with no money down.

I suggest turning to the internet and performing an in-depth search of local car dealerships that are willing to work with someone who has a this type of credit history.  In doing so you can expect to have to pay a higher interest rate on your loan since you are a liability and might not pay back the loan. 

After you have found a car dealership that is willing to work with you and your poor credit it will be important for you to get together a few items that will help the process of securing this car loan.  Many times the car dealership will ask for copies of a paycheck to prove you actually have an income, drivers license and some kind of utility bill that validates your employment and residential address.

By having these items readily available you will speed up the process of securing your car loan and help alleviate some of the doubts that this particular car dealership might have about financing a car.

Another way to help you get a car loan is to make a conscious effort to start paying your bills in a timely fashion.  In doing this you will be setting off on the right foot to get your credit back on track.  You can also show the car dealership that you have started getting your finances on track and are now paying all of your bills on time which will help increase your credit score.

 Also, if you had documentation that you are paying these bills on time and that you can afford these car payments on your current monthly budget that will go a long way in helping you get a car loan.

Many banks or lending institutions do not want to loan money to those who will have a difficult time paying it back.  This is a viable concern of the lending institutions but can be quite a burden on those who need a loan to buy a new car.  If you find yourself in this situation all hope is not lost as there are several ways that you can go about getting a car loan.

By searching on the internet you will be able to find certain car dealerships that work with people who have bad credit.  Once you find one of these car dealerships you can show them the necessary documentations that prove you have your finances in order and are in fact receiving income that will allow you to make this monthly car payment.

Moe Bedard
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.