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Automobile is an absolute requirement and a basic necessity in many cities in USA, today. If there are no trains and subways connecting you to different parts of the city, then your only means is to travel by a car or a taxi. Even though taxi is an option, it doesn`t give you the freedom to travel and has time and availability constraints. Buying a car is an easy process if you a good credit history established from a long time. You can qualify for almost every kind of auto loan that is available and you can buy it from any auto dealer you choose.

For people with a bad credit history however, this can become a slightly tedious process. Although most auto dealers consider people with bad credit history for their financing options, there are limitations in terms of models of cars and amount of financing available. There are auto dealers who specialize in auto loans and financing options for poor credit, and you will get plenty of options if you search for them online. You can start your search by your local area, and can schedule a visit if needed. Most lenders will approve the application if your credit score is anywhere from 550 to 600. You can choose from a number of models of cars available, but you must be aware that not every model in the showroom will have the financing options that you need.

Another thing you must consider before you sign up is the interest rate charged on your loan. Interest rates charged depends completely on your credit score and sometimes, the dealers will let you refinance your car loan. That means, you will be paying a high interest rate for the first year or so, and then when your credit score improves, you can refinance your car at a much lower interest rate. This option is not available with every car dealer, but there are quite a few of them who give you the provision.

If your credit is bad and you are applying for an auto loan, then you will need to put down a higher down payment towards the car. Dealers will not approve your loan application if you don`t put down a payment upfront, since it acts like a security for them.

Buying a car is not impossible without a good credit. But trying to improve your credit score can always land you in better situations when it comes to obtaining loans and making big purchases.