When you shop for loans you should be very upfront with lenders about the status of your credit before they pull your score. This will allow you to be honest with them and explain your situation, which may make them more inclined to work with you. You should contact only lenders that you have an account with or that specialize in bad or challenged credit auto loans.
When you are looking for a car loan you should definitely shop around as much as possible. You can inquire about a loan with your bank, with a lender that you currently have another auto loan with, or even with online lenders. The more you shop around the better idea you will get of what you can expect in the way of interest rates and length of loan. When you are comparing rates, expect to be offered interest loans that are five to even 15% higher than the loans that people with good credit are offered. Because of this, shopping around will allow you to seek out the best rates for you. Even a one percent interest difference can save you a lot of money over the life of the loan.
If you have challenging credit, than a bad credit auto loan could be the best thing for you. If you pay your loan on time, then you could turn your credit score around by the time your vehicle is paid off! Car loans are out there for those with poor credit, so that everyone can obtain the loan that they need to get into a reliable car. If you have bad credit, it is not hopeless, just take the time to properly research and shop around to find the best rate.