Finance Roll

This article looks at a few common and not so common options that you may have available to you for bad credit car loans. It's much easier than many imagine to get approved if you have a job with sufficient income and meet some basic criteria.

One very smart way to go...

Do you own a home? One of the smartest ways to get a great bad credit car loan is to take out a home equity loan. The interest rates are much lower than most bad credit car loan companies charge and the interest is also, drum roll please... tax deductible as mortgage interest. This is one creative and advantageous way of getting the money you need for a car with a secure financing option.

One not so smart way to go...

Buy here, pay here places (those dealerships that you see with signs offering to finance anyone) are popping up everywhere. These are usually small local dealers that have high mileage used cars. They offer to finance anyone that walks through the doors usually, that has a down payment (to cover the cost or a portion of the car) and a job. This is akin to purchasing a vehicle from a pawn shop due to the high interest rates and the pricing (they're betting that you don't look at an used car pricing guide). If you're in a bankruptcy or just have credit that's "tore up from the floor up" then this is an option for getting back on your feet (or off of them).

One not so common option some have...

Local banks (credit unions included) are an option for some if you have an open account with them that is in good standing. Even after a bankruptcy, if you've kept your payments current with a local lender that has treated you well (and you've reciprocated with timely payments) then it's a good idea to check with them first before going elsewhere. You may be surprised what knowing someone can do, too!

One way many are choosing these days...

Online companies that specialize in bad credit car loans and helping people find lenders based on their credit situation/obstacles are some of the best places to look. There are many websites that offer this service, yet you have to be cautious in this day and time to make sure that you're dealing with a good, solid and legitimate company.