Having bad credit is no fun at all; it can put a damper on a lot of things especially when you need to take out a car loan or any loan for that matter. But getting a car loan in order to purchase a used car is not impossible. If your credit score is bad and you are in the market to buy a used car, you need to be prepared to pay a higher rate than someone with good credit scores. This need not discourage you, as there are companies that offer car loans to people with bad credit, but you need to be careful when shopping around for a car loan and make sure that you are not overcharged just because you have bad credit.

Here are some strategies that can help you land a well-used car loan. First of all, you need to check your credit score. Most people just assume that they have bad credit scores just because they were late on their payments or they have overextended their budget. So it is very important to walk into a used car dealership with your credit score in hand. Another obvious reason to view your credit score is for you to learn what are the areas that you need to work on in order to improve your credit score. You may sometimes find mistakes that when corrected can boost your overall credit score. It would be wise for you to delay your approach for a used car loan till you improve your score. The next step would be to then find a dealer who will work with you. You could also settle for getting a used car loan with a bank that works with the dealer that you are thinking about approaching. It is crucial to get preapproval for a used car loan with a bank or a credit union before you approach the car dealer. The preapproval analyzes your income, expenses, credit score and determines whether you will qualify for a loan from a lender.