Having bad credit is a growing problem in this country. But getting a car loan if you have bad credit is another problem for a lot of people. Just because a person has bad credit doesn’t mean they aren’t going to need to purchase things to get through their day-to-day, like a car. So how does a person with bad credit go about getting a car loan? Surprisingly, there are a lot of options out there for consumers with bad credit ratings.

Firstly, if you are looking to purchase a vehicle and you know you have bad credit, be realistic in your expectations, and be honest about how much you can actually afford for payments. After all, the last thing someone with bad credit needs is more debt to tarnish their underwhelming credit score.

One of the best ways to start looking for a car loan is online. There are loads of websites that are devoted to sub prime auto loans or, loans for people with bad credit. Doing a quick Google search for “car loans with bad credit” will give you more than enough sites to start you on your loan hunt. Many of these sites have free application processes that allow you to fill out an application for a car loan that then gets sent to an auto dealership that is used to financing cars for bad credit consumers. Remember; be honest when filling out your application. Applications for sub prime loans often get approved or denied based on factors like monthly income by an individual, not by a household. So if you only make $2000 per month, don’t say you make more than that by adding your spouse’s income to your total. If your application gets approved, dealerships will usually ask you to bring proof of income, like tax returns or paycheck stubs.

If you do get approved for a sub prime loan, don’t be surprised if the initial interest rate seems high. Knowing your credit score before you start looking for a loan is very helpful in that you will somewhat know where you stand with lenders. Usually lenders reserve their lowest interest rates for people with good credit. The lower your credit rating, the more risky a consumer seems to a lender, and therefore will get a higher interest rate than someone with good credit. However, most dealerships will give a consumer with a higher interest rate the option to refinance their car once they’ve established a good payment history and their credit score starts improving.

Having bad credit doesn’t mean that you can’t get what you need out of life. Remember, to be realistic with your expectations and be honest about what you can actually afford. There are many companies that are willing to work with bad credit consumers, but they aren’t going to find you; you need to take the first steps. Bad credit may be overwhelming at times, but it doesn’t have to stop you in your tracks. If you do get approved for a loan, make timely payments and you’ll be helping yourself in the long run by re-establishing some good credit.