Many Americans are having trouble meeting timely payments due to the financial crisis. Because of this, many are finding themselves in a bad credit situation. Young people who could not find a job in the last couple of years are finding themselves set back with little credit history.

That is why for many getting a car loan, particularly with bad credit, can be difficult. Fortunately, there are ways to get a bad credit car loan without the worry and hassle. Since the interest rate on any loan is determined by the your credit score; and since a higher interest rate means higher payment on a car loan, you must get a good look at your credit report to determine where you should go from here.

Every American is entitled to a free credit report by law according to the Fair and Accurate Credit Transaction Act. You can apply for your FICO score from the three credit reporting agencies through annualcreditreport.com.

First, upon receiving your credit report, evaluate it for discrepancies. If you find any call the companies involve to immediately correct any errors. . Second, set a schedule or system where you could begin to pay your bills on time.

Perhaps you could call some of your creditors to arrange monthly payments or consolidate all your debt into one account. The higher you credit score the better the interest rate on a loan. With a good credit score you could get a auto loan for as low as 6% but with a low score it could be as high as 20%.

Second, you have the option of a new or used car. Having bad credit, experts recommend you buy a used car for two reasons: 1)new car loss about 15 to 20 percent of they value from leaving the packing lot; 2)Used car cost much less.

o find a reliable used car with good resale value, if in case you might want to do a trade later. Third, when you visit the dealer have all the document you will need, including an update report of your credit score.

The dealership will look into your credit, so you want to ensure that the credit rating they are using for your loan matches yours. Having all the document you will need will give you an edge in negotiating a fair price. Dress smart, professional and look confidence. Individual bias sometimes creep into the loan process and people access you by the way you look. If you are a woman, this could work wonders for you.

If you are concern about the aggressive nature of some car salesmen then you can go online and submit application to one-stop-shop loan outfits like CarDownLoan.com through which lenders compete to provide you with competitive rates on Bad credit car loans